Importance of Will and Estate Planning
Importance of Will
The importance of Will and estate planning cannot be stressed enough, as life we all know can be long, productive but eventually it all ends; an eventual death. A taxpayer, in this case, should have a plan that ensures all his property, and accumulated wealth is well divided and his wishes adhered. A written will and proper planning of the estate should be properly moved into place, ready to be implemented without cumbersome court processes that would stall the division process. It is, therefore, important that he or she prepares himself by implementing legal team to follow up with his tax returns and file then correctly to ensure that his beneficiaries do not suffer and miss their possession
Type of Will
Conventional will is the most common type of will applicable and more so applicable in all provinces. A will should be:-
– In writing
– Signed by the testator, or another person in the presence of the testator.
– Signed in the presence of two or more witnesses present and all must all sign in the present of the testator.
The witness, in this case, has no claim to the will, and they must be of age to the majority present. The testator is required to be of sound mind and capable at the time of the signing the will. A typed will is not allowed even with the testator’s signature. Fraud cases are very common, and a lawyer’s presence or a copy of the notary certificate accompanying the will or a copy should be proof enough that it is the original or a copy of the original. Individual will do not require a probate, proving hard to contest in court. The notarial will are mostly allowed in the province of Quebec; governed by civil code.
The court document required by an executor before the estates administered. This is a certification by a court (probate/surrogate court) stating the legitimacy of the will. The fees required for the probate are not deductible on any of the tax returns.
Probate fee in British Columbia (Payable on gross value of all personal and real Property in BC)
Estates under $25,000……………………………………… no fee
$25,001 to $50,000………………………………. $6 per $1,000
$50,001 and over………………………………… $14 per $1,000
The Death of an Individual
The taxation year of a deceased individual ends on the date of their death. All his property at this time will automatically become his estate. Any joint partnership does not make part of the estate but it transfers to the next survivor in line. If he had a will before his death, it will specify how the estate should be managed and distributed. It will also specify whom the deceased wanted to assume this responsibility, this individual is called the “executor”.
Currently, there are no inheritance taxes imposed by either the federal government or any of the provincial governments in Canada. This means that the deceased’s money, investments and other properties can pass to the estate and to the beneficiaries without being taxed. However, because the deceased is deemed to have disposed of all capital property at the time of death, the amount inherited by the tax may reduce the beneficiaries payable on any capital gains or recapture of capital cost allowance that must be reported on the deceased’s final return
Dying Without a Will
In-estate is a situation where the taxpayer dies without a will. This allows for his estate to be delayed before administered. The heirs can merge and agree on an administrator failure to which the court can look for a relative, spouse, children grandchildren. If no one is around, the court can appoint a public trustee or at the time referred to as a guardian acting as a legal representative of the estate. Lack of a will also allow the court to share the estate differently. In Alberta, a spouse can receive $40000 and $20000 in Ontario. Lack of a preferential share rule leaves the court to divide the estate in prescribed portions to the children, spouse, and others.
Format of a Will
You can view the format of a will at the link below:
Raj Katlaria is a professional and dedicated accountant in Surrey, BC, whose mission is to find the best solutions regarding a person’s financial needs. This helps prevent future problems, especially when involved in financial and estate planning. To help you to develop a financial plan that deals with any unfortunate financial emergencies call Raj Katlaria at 778-926-9226 to book a personal consultation.
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