Hot summer days bring back memories of the sun and the family swimming at the beach.

And when your family packs up for a summer trip, their safety is always your concern.

You can protect your family with this quick estate planning review in a matter of minutes.

I call it 3-D Estate Planning Review. It goes like this:

Before you fly away or finish packing the car, take a moment to answer these 3 questions.

1. If one of us does not come back, what happens to our family?
2. Who will be in charge?
3. Where will they find important papers?

As a parent, it’s your job to protect your minor children.

You need a will to name guardians for them and provide for their needs.

Sure, you have done that but before you leave for summer vacation, run through this 3-D Estate Planning Review.

The First D is for “Deeds to Property”

• Are your ownership deeds in order showing the proper owners?
• Who will inherit your home, vacation or business properties?
• Can anyone find the deeds, mortgage and insurance papers?

The Second D is for “Documents”

• Where are your original signed wills and powers of attorney?
• Does your executor/attorney know where to find them?
• Do executors/attorneys know a good estate lawyer in an emergency?
• Should you revise these documents before your holiday?

The Third D is for “Designations”

• Do you have designated beneficiaries on your pension, life insurance, RSPs, RIFs, and TFSAs?
• Have you considered all tax rollovers to spouses and charities?
• Do you have enough life insurance designated to cover your family?

What if you are single, or you and your spouse do not return from vacation?

Use the same 3-D approach. Whatever you do, get professional advice.

You can often get reassurance that everything is in order by calling the lawyer who prepared your estate plan and will.

What’s that you say?  You created your will online without a lawyer?

Uh-oh. You have no one to turn to for advice and reassurance.

It’s not too late to get things done.

Contact me for an appointment or call 416.769.9800.

Tell me when you have to leave for holidays. I can help put an estate plan in place.

You can have wills and powers of attorney prepared by a Certified Specialist in Estates and Trusts law.

Stop losing sleep. Contact my office today for an appointment, and see my schedule of services and fees.

I have posted an EstateSmart Quiz at EstateTherapy.com.

It’s a two-part quiz. Take a moment to test yourself with 10 easy questions. Test yourself now. Click here for Part 2.

Canada’s Supreme Court has issued a wake-up call for common-law spouses.

The law has changed based on decisions released February 2011.

If you are a common-law spouse, you may not realize it but you have no legislative rights to inherit property in Ontario.

In Kerr v. Baranow, the Supreme Court of Canada clarified how claims can be made by common-law spouses.

In the next few weeks, I will be writing about how this is a game changer for many readers.

The case affects you if you are: 

• an executor dealing with claims from a common-law spouse
• a common-law spouse left without a proper share of an estate
• making a claim against an estate for support
• doing your will and estate planning involving a common-law spouse

I will point out the common dangers you can avoid when you are making a will. You may need to revise your own estate planning to prevent costly disasters. 

Let’s start with some basics.

When Is a Spouse Not a Spouse?

Married spouses have legislated rights in Ontario. The laws protect you if you have a marriage license. You have rights to share property and get support.

However, if you are a common-law spouse, in most jurisdictions, including Ontario, you do not have the same protection by legislation. The outcome is that if you wish to share property or get support, you must enforce your rights. This usually means going through the costly court system.

Common-law spouses, therefore, must ensure they are protected. Your name needs to be on the title to assets like a house, business or bank account.

What if your partner dies and leaves no will? Or has a will that gives the estate to relatives leaving you without support?

You must find the right legal advisor to sue the estate. The Kerr case lays out new ground rules.

Tip #1 Remember that your marriage automatically revokes any previous will in Ontario.

This is not the case in every jurisdiction, but if you don’t make a new will in Ontario, the government makes one for you. The government can then:

• determine who is in control of your estate property;
• determine who will inherit all your wealth; and
• ensure that you pay the maximum in taxes.

You will have no say in the matter. If you have remarried, then you need to make a new will.

Tip #2 In second marriage situations, it may be necessary for you and your spouse to retain separate lawyers.

Why?

This avoids any potential conflict of interest in the estate planning. It also ensures you receive independent legal advice. This is crucial if you have minor or dependent children that need protection and long-term support needs or if there is an age or wealth disparity.

Tip #3 Estate planning in 2nd marriages is basically the same old game but with new rules.

You need to educate yourself.

• Take steps to make sure that you’ve properly designated beneficiaries on all your assets, insurance, pensions, RRSPs and RIFs.
• Understand when to jointly own property with a new spouse and what should be included in your will.
• Find out if you need a marriage contract to protect specific assets such as a home business and investment portfolios.

Contact my office today for a consultation.

ALSO! Tune in to Zoomer Radio AM740 on Sunday, February 27, 2011, 9 a.m. – 10 a.m. EST and join Ed as he discusses the most pressing estate planning issues in divorce, second marriages and mixed families, on Right On the Money, with Wayne Baxter of Investment Planning Counsel.

Here are 3 estate planning resolutions you can keep. Use them to protect your family and to give you peace of mind.

1. Make a will – resolve to invest in a professionally-prepared will. The cost of this investment, spread out over a number of years offers the best protection.

Do you think your homemade or do-it-yourself will is adequate? Prove it by having your handiwork reviewed by a lawyer. Remember – only a lawyer can render a legal opinion on a will. 

2. Make a power of attorney for property – this will ensure that should you have an accident, someone has access to your money. Your attorney would then be able to:
• manage your property, finances and investments,
• pay for your care and expenses, and
• collect rent or sell your property.

Don’t think that your family members can do this for you without a power of attorney.

When you need a power of attorney for property, it is often too late to sign the document. Your family should have access to your bank accounts if something should happen to you. That is why a power of attorney for property should be part of your estate planning tool kit.

3. Make a power of attorney for personal care – don’t leave your family guessing as to your wishes. Express your preferences. Do you wish to:
• continue to live in your own home or a nursing home,
• have in-home care paid for by you, or
• when the time comes, what kind of final treatment you would prefer

Want information to help with your estate planning resolutions? Take action and look at material I have at EstateTherapy.com:
1. download my free ebook: Estate Planning 7 Keys to Success
2. read a sample chapter from Breakthrough Estate Planning
3. register to receive advance notice of an Estate Planning online workshop

Event Notice:

On Thursday, December 2, 2010, 6 – 9 p.m., Ed Olkovich will be hosting a special event for the Certified General Accountants of Ontario – Toronto Chapter, entitled, “Protecting Family: Estate Planning Made Easy“.

This event will take place at 5110 Yonge Street, in Toronto.

For more information, contact us here.

Let me explain what the trick is about wills.

Simon had no clue how to divide up his estate. He was going on a trip to Dallas and wanted to make a will before he left.

He wondered, “If I leave $25,000 to Billy and $25,000 to Sally, will there be enough money in my estate to come through on my promises?”

Let me share this secret with you about what Simon should do.

No one knows for sure exactly what their estate will be worth. That’s why you should think of dividing your estate in terms of percentages or, better still, shares. This is a lot easier than figuring out “how much will I have left for each person?”

Leave 5% or, even better, five shares, for Billy and five shares for Sally.

Remember this, though: Without a will, your estate is distributed not as you wish but as the government decides.

If you do not have a will, you have no say in who gets what and who is in charge of your affairs.

Free Estate Webinars

I am hosting a series of free estate webinars.

In just 30 minutes on Wednesday November 24 at 7:00 p.m. EST, you’ll learn the 5 costly mistakes to avoid when making your will.

To register for this webinar topic and others, click here.

I’m excited because I’m hosting a series of free estate webinars. These are basically web-based, live and interactive seminars.

I’m delivering a series of webinars on how to make a proper will. If you are making a will for the first time or revising a will, join me.

Each Wednesday at 7 p.m. EST, you will get my secrets during a 30-minute webinar.

You can register at EstateTherapy.com.  Avoid disappointment by registering here today.

The next webinar is on Wednesday, November 10, 2010. You will learn the 3 secrets to choosing the right executor in your will.

The webinar information comes from my experience as an estate lawyer since 1978. If you miss the webinar, you can get valuable information in my book, About Wills: You Need to Review These Essential Tips.

Okay, you’re not King Tut. You’re not going to take it with you. You’ll need a will. 

Do you know what happens to your money when you die?

If you don’t have a will, here are three key things to know:

• your spouse or children do not automatically get all your money
• your minor children will not be protected
• your family will need costly court orders

Somebody must first find your money.  That somebody is your executor, called your estate trustee in Ontario.  Before they can collect your money, they need legal authority to act for you. They will hire an estate lawyer to get advice and go to court.

Why invest in a professionally prepared will?

You can choose a person you trust to be your estate executor or estate trustee. For simplicity, let’s refer to this person as your executor.

The executor will be in control of all of your money. 

Executors can sell your property once their authority is confirmed by an estate court.

Getting Probate

This process is referred to as “getting probate” of a will. In Ontario, this is called getting a certificate of appointment of estate trustee.

The estate court certifies who represents you when you are gone.  The court issues a certificate confirming your executor and who shares in your estate.  Your executor can then administer your estate.

They collect all your money, pay taxes and bills and distribute the residue to your family.

Want more tips on being an executor? Get my two free mrwills.com guides to Executor Duties – What You Need to Know and Executor Mistakes – 10 Things Executors Must Never Do.

Register for one of my upcoming webinars about wills or executors.

3 Secrets to Protect Your Family will not show you how King Tut did it. You’ll learn action steps, pitfalls to avoid and get practical checklists to protect your money. Register today.

Who Inherits Your Money?

Caution! Estate Potholes on the Web

If you cruise the Web looking for legal information about wills or estates, beware!

Information you find about estate planning or about an estate executor’s duties may not apply to you.

There are different estate laws in each jurisdiction. When it comes to wills and estates, a lot depends on what side of the Canadian-American border you live on.

Federal income tax laws are different on each side of the border. Canada has no federal estate inheritance tax on the overall size of the person’s estate. In the United States, reducing gift and estate taxes can require sophisticated estate planning.

Each province or state may have specific estate laws that apply to their citizens and property located within their borders. For example, provincial probate taxes are calculated differently and at various rates in each province.

Search Tips to Remember About Estates

1. Start your Internet searches by limiting them to your particular jurisdiction.

2. Never assume that what you read on the Internet is legal advice that applies to you.

3. Replies to your e-mail inquiry are also not substitutes for legal advice on your particular situation.

When it comes to advertising, law firms are not allowed to make claims about their competence or guarantee results. They must always act with integrity. Bragging or boastful claims to be the best should be signs of danger ahead.

Lawyers have a license to practice law in a particular jurisdiction. Make sure you have not accidentally crossed the border while you are searching.

If you are a member of the public, it is important to know information you’re reading and how it may apply to you.

Check to make sure the geographic location of the lawyer’s offices is in the correct province if you’re looking for information.

Legal Advice Versus Legal Information on Wills and Estates

There’s an important distinction between researching general legal information and getting legal advice.

Before giving legal advice, lawyers must always be careful to:

• avoid any conflict of interest with an existing client
• receive and keep information confidential
• not answer questions without identifying all necessary background information to avoid errors

What is a Conflict of Interest?

Having a conflict means of a lawyer cannot advise or represent both sides in a dispute.

A lawyer cannot accidentally give advice to someone who is in conflict with an existing client. That is why you find most law firms’ websites contain privacy terms disclaimers, warnings and terms of use.

Reputable law firms will confirm what appears on the website or blog is not legal advice.

Communicating any information that is sensitive confidential electronically can be dangerous.

Therefore, if you are reading information from this website or blog, you must understand the terms of use. You can only obtain legal advice for your specific particular situation after:

a) a face-to-face meeting
b) an identity and conflict check and
c) you sign a retainer agreement.

Don’t think all estate lawyers are the same.

Get advice from an experienced estate lawyer who understands your situation. With help, you can steer around dangerous estate potholes.

2009 © MrWills.com. All rights reserved. You may reprint this article provided you credit the author and this website as its source.

This information is not financial, legal, tax advice or a substitute for professional advice. Always consult with a professional before taking any action.

Ed Olkovich B.A. LL.B C.S. TEP is a Toronto lawyer, certified specialist in Estates and Trusts Law. Ed is frequently quoted as one of Canada’s leading estate experts. He is the author of several books including Executor Kung Fu and Estate to the Heart, both available at EstateTherapy.com or by calling 416.769.9800.

Contact Ed Olkovich’s office here or call 416-769-9800 to arrange a consultation today.