Three rules of executor liability for debts of an estate
Rule 1 An executor is not automatically liable for the debts of the deceased just because they are the executor. When you step into the role of the executor of an estate you do not automatically become personally liable for…
When an estate has debt.
Stay calm There is nothing wrong with the deceased leaving a few unpaid bills at death. However, too much debt can spell trouble for a prospective executor. It is very important for a prospective executor to get a clear picture…
Inheritances by children in Ontario
In Ontario, a minor child (under 18) is not entitled to directly inherit funds. If a child is entitled to inherit (either under a will, or because of an intestacy) there are four options: The Will establishes a trust for…
Top 5 Estate Planning Mistakes in Ontario
The most common and important mistakes in estate planning are not about complex issues. They are basic mistakes about the fundamentals. 1. Not having a will The rules for how an estate is divided in Ontario when there is no…
Separation and divorce
Divorce or separation before death? Will or no Will? Big difference. It is very important to clearly identify the marital state of the deceased prior to death. If the deceased was formally married, and then formally divorced, certain rules apply. …
Beneficiary designations: be very careful
Many life insurance policies and various savings plans (RRSPs, TFSAs, RRIFs) provide a means for you to designate a ‘beneficiary’, and on the death of the plan/policy holder the funds flow directly to the named beneficiary. It is very common…
What to do when the executor will not act
Are you experiencing a very slow executor, one who never actually administers the estate? Executors who cannot or will not administer the estate are not uncommon. Sometimes years can go by without the executor having sought an appointment (probate), or…
Life insurance is not normally an estate asset
Life insurance is usually a contract between the insurance company and the policy owner (holder) that requires the insurer to pay an amount to the beneficiary (a third party) on the death of a person (who may or may not…
The executor: how long to wrap up an estate
In Ontario there is a common-law rule of thumb that the executor of the estate has one year from the date of death to wrap up the estate; that is collect all estate assets, pay all estate debts and liabilities,…