WH Law’s Post

The executor of your estate is your final safeguard—are you confident in your choice? If the banks step in, expect delays and headaches. You need to ensure that the executor you choose will honor your true intentions. In Ontario, there’s no legal distinction between an “executor” and an “estate trustee.” The executor plays a pivotal role in managing your estate—handling paperwork, paying debts, filing taxes, and distributing assets to beneficiaries. Your executor should bring you peace of mind and take care of your family, not stress. Here are six key considerations: 1. Choose one person—Avoid the complications of joint executors. 2. Select a beneficiary—They’re motivated to ensure everything goes smoothly. 3. Provide compensation—Especially for those who aren’t benefiting from the estate. 4. Ensure they’re qualified—The individual must be at least 18 and mentally competent. 5. Look for impartiality—They should be able to remain neutral in all matters. 6. Financial literacy is crucial—They’ll be handling significant financial responsibilities. The role of an executor can require 500 to 1,000 hours, depending on the estate’s complexity. This isn’t a small task—it needs careful thought. You also want someone who picks up the phone when you call and isn’t out of country. If estate valuations aren’t done correctly when there’s a corporation, this can lead to probate tax if not handled in a timely manner. Once you find someone and both parties agree, formally appoint the executor by including their name in your will. Always have a backup executor in case anything happens. Professional advice can be invaluable for choosing an executor, especially for complex estates. It helps ensure you choose the right executor for your unique circumstances, minimizes conflicts among beneficiaries, and maximizes administrative efficiency. A good executor will preserve the family harmony, minimize conflicts and reduce personal liability amongst beneficiaries.

Five minute school of estate administration 📝 Here’s your essential starting point for estate administration duties. Let’s get stuck in. 1. Inventory of assets Compile a comprehensive inventory of the deceased's assets, including real estate, bank accounts, investments, personal property and any other valuable possessions. 2. Probate process If required, initiate the probate process by submitting the deceased's will to the probate court for validation. Once the will is deemed valid, the court grants legal authority to the executor to administer the estate. 3. Debt settlement Use estate funds to settle any outstanding debts and obligations of the deceased. This may include funeral expenses, outstanding bills, loans, mortgages, and taxes owed. 4. Asset distribution Distribute the remaining assets of the estate to the designated beneficiaries following the terms of the will. 5. Record keeping Maintain detailed records of all estate-related transactions, including income, expenses, distributions, and communications with beneficiaries and creditors. 6. Tax compliance Prepare and file any necessary tax returns for the deceased individual, the estate, or any trusts established as part of the estate plan. 7. Legal proceedings If legal proceedings or disputes arise during the estate administration process, they’ll need to be resolved. This may include contesting the will, resolving creditor claims, or addressing disputes among beneficiaries. 8. Finalisation Once all debts have been settled, assets distributed, and legal obligations fulfilled, finalise the estate administration process. Close bank accounts, cancel subscriptions, and transfer any remaining titles or deeds as needed. ⭐️ Navigating estate administration requires attention to detail, diligence, and a thorough understanding of legal and financial matters. If you're feeling overwhelmed, don't hesitate to seek guidance from qualified legal and financial professionals who can assist you every step of the way. On the flip side, when nominating your executor, trustee and other guardians in your own estate plan, choose someone who can step up to the task. #EstateAdministration #AssetDistribution #LegalCompliance #LegacyPlanning #EstateLaw

Do You Operate a Joint Account? With Who? How have you been operating it? I have met a few women who ask me about my views around spouses running a joint account to grow their wealth. There are many schools of thought relating to who is the primary or secondary account holder of a joint account. Some are of the opinion that joint account should only be applicable to married people; as such the husband should be the primary/principal account holder. Hence, he should have unlimited access to the contribution and should manage the account as he pleases. Some women have a preconceived belief that a joint account ownership with their spouse shows that they are tightly in love and committed. There is however a common misconception about ownership of joint account funds and these has led many people into trouble. Ownership of a joint bank account is shared between two people. However, even though they share ownership of the account, some account holders do not necessarily like to share the ownership of the funds in the account. In other words, the mere presence of funds in a joint account for them does not mean that the funds are jointly owned. This distinction may seem like semantics, but it can significantly impact the use of the account funds. How Joint Accounts Work Joint accounts work just like regular accounts, except they can have two or more authorized users. Joint accounts can be established on a permanent basis, such as an account for a couple into which their salaries are deposited. The account may be set up temporarily for the purpose of an investment or a project that has a timeline. A joint bank account can also be an effective estate planning tool, particularly for individuals hoping that their heirs can avoid the probate process. Nonetheless, caution is warranted. In certain areas in Nigeria, most fathers have a joint account with their first son; where the first son inherits everything after the death of the father. They do this to avoid the process of writing a will or probate. Here, the father would typically maintain ownership of the funds during his lifetime despite sharing ownership of the account with his son. The son then takes over the ownership of the account at the demise of the father. Bank accounts held jointly between two parties may be titled with an “and” or an “or” between the account holders’ names. If the account is listed as an “and” account, then both/all parties must sign to access the funds. If it is an “or” account, only one of the parties needs to sign. Accounts that are jointly held include deposit accounts at banks including checking and savings accounts, even mortgages. The joint status authorizes all those listed on the account full use, but also the responsibility for any payments, fees, or charges incurred. Continue reading this post here https://lnkd.in/d82mkxkY Kindly share in the comment section if you have any personal experience on joint accounts?

𝗪𝗵𝗼 𝗽𝗮𝘆𝘀 𝗮 𝗱𝗲𝗮𝗱 𝗽𝗲𝗿𝘀𝗼𝗻'𝘀 𝗱𝗲𝗯𝘁𝘀 𝗮𝗻𝗱 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗼𝗯𝗹𝗶𝗴𝗮𝘁𝗶𝗼𝗻𝘀? When a person dies, their debts and financial obligations typically become the responsibility of their estate. The process of settling these debts and obligations is managed through a legal procedure known as probate. Here's a general outline of how it works: ✅ Executor or Administrator Appointment: If the deceased left a will, the will usually names an executor who is responsible for managing the estate. If there is no will, the court will appoint an administrator. ✅ Inventory of Assets: The executor or administrator will compile an inventory of the deceased person's assets, including property, bank accounts, investments, and personal belongings. ✅ Notification of Creditors: The executor or administrator must notify creditors of the deceased's death. This is often done through public notices and direct communication with known creditors. ✅ Payment of Debts: The estate's assets are used to pay off any outstanding debts, including medical bills, credit card debts, mortgages, and other financial obligations. Priority is usually given to secured debts (like mortgages) and legally required payments (like taxes). ✅ Distribution of Remaining Assets: After all debts and obligations have been settled, the remaining assets are distributed to the heirs or beneficiaries according to the will or, if there is no will, according to state intestacy laws. ✅ Insolvent Estates: If the estate does not have enough assets to cover all debts, the estate is considered insolvent. In this case, debts are paid in a specific order of priority, and some creditors may not receive full payment. ✅ Surviving Family Members: In general, family members are not responsible for paying the deceased person's debts unless they co-signed a loan or are otherwise legally obligated. However, there are exceptions, such as community property states where spouses might be responsible for certain debts. It is advisable for executors or administrators to seek legal guidance to navigate the probate process and ensure all obligations are properly handled. #estateplanningattorney #livingwill #estatetaxes

You have to vest in your trust. Everything needs to be connected to your trust or have a way to pass on to your desired loved ones. 1. Vest in your trust 2. Be sure, if not in your trust, that you have appropriate beneficiaries on file with the financial institution 3. Double check this often; never assume that an asset is safe Make a detailed list. Ideally call this list a Schedule A or Schedule of Trust Assets if you have a trust. Write on this schedule all of the assets you own and if not in your trust, make a note of how you have handled the vesting or designated beneficiaries. Here is a sample: Schedule A Sawday Family Trust 1. Real property located at 1234 Washbasin Street, Long Beach, CA 2. Partnership interest in TLD Law 3. Business ownership interest in Sawday Horns 4. Any and all bank accounts at Big Bank 1 5. Any and all bank accounts at Small Bank 2 6. Life Insurance policies with SmartInsurance Company 3 7. Oil Rights 8. Music Royalties 9. Promissory Note 10. LLC interest in Catchbasin LLC And so on. Of course my schedule As are much more detailed and have more preamble and a catch all but you get the gist. And if you have multiple accounts at various banks, each account needs to be carefully reviewed. A blanket, oh, all my accounts are in the trust including that small IRA is not good enough. Clients who all have items in their trusts, there is no issue at the end of the day other than completing paperwork. Otherwise we have to discuss options, like: 1. Probate 2. Heggstad Petition 3. Small Estate Affidavit 4. Abandoning asset, not wise Don't be a mess. Vest in your Trust! #TrustsAreBest

Most people understand that having some sort of an estate plan is a good thing. However, many of us do not take the first steps to get that estate plan in place because we do not understand the consequences of passing away without a will or trust (which is called intestacy). If you die intestate, much (if not all) of your property will go through probate. Probate can be looked at as the court-supervised process to transfer assets after your death. What you owned, what you owed, and who got what can become a public record. Your mortgage company, car loan company, and credit card companies will all seek payment on balances you owed at the time of your death. After that, state law will decide who gets what and when. For example, if your only heirs are your two children and you have not provided any instructions, state law will mandate divvying up proceeds equally. If one or both of these children are under the age of 18, the court will appoint a conservator to manage their money until they turn 18. The conservator can charge a lot of money for their services and can be a total stranger.  When a child turns 18 he or she will gain full access to the inheritance – which is usually far too young to responsibly manage the inheritance. And if you die without a valid will, the court, not you, will decide who gets appointed guardian to raise your minor child. An alternative to intestacy is a properly funded trust. Accounts and property owned by the trust are not subject to the probate process. In the trust, you will have named a trusted individual (trustee) to manage your affairs with specific instructions on how your accounts and property should be dispersed and when.  You do still need a will to get any accounts or property inadvertently or intentionally left out of your trust into the name of the trust. You will also still need a will to name guardians for a minor child. The bottom line? A trust allows you to maintain control of your accounts and property through your chosen trustee, avoid probate, and leave specific instructions so that your children are taken care of. #estateplan #estateplanning

Everyone who drafts a will should give some thought to who to nominate as the executor for their estate. Banks offer free wills in return for being nominated as executors – a service for which they will take a fee. You can also nominate a family member – but before you do you should think about whether that person has both the time and the knowledge to do all that is required to wind up your estate. Our latest article may help you decide who could step into your shoes and finalise your estate when you are gone. #SmartAboutMoney #financialeducation #Wills #EstatePlanning

Here is a 2-step process you can use THIS WEEK to improve your finances... 1. Go to your bank. 2. Add beneficiaries to your checking and savings accounts. Most people don't realize that they can add beneficiaries to their regular bank accounts. It's almost never a question asked in the account opening process. If fact, having worked in retail banks for over a decade, I can tell you that most of the people whose job it is to open those accounts don't even realize that beneficiaries can be added. Why is this important? Let me paint you a picture... Andy & Helen have a joint checking, joint savings and joint certificate of deposit at the Bank of Mayberry. If Andy and Helen were to die in a car accident on their way to the Chinese Restaurant up in Mt. Pilot those joint accounts are now going to be subject to probate. That means there will be time and costs involved before their children would have any access to the accounts. Had they gone down to the bank and named their children, Opie and Andrew, as beneficiaries to all three accounts, things would be much simpler. Opie and Andrew would only need to bring death certificates into the bank to have the accounts re-titled into their names allowing them to do whatever they need to with their respective portions of the cash. If neither Andy nor Helen had children, things could become much more complicated. Each state has different statutes that determine how assets are passed through the probate process. Beneficiary designations avoid probate which means it goes to who you want it to go to, even if you don't have a will.

Estate (assets of the deceased person) distribution can be a delicate and tedious situation, especially when the deceased did not write a will. It can get even more complex if the deceased is Muslim, subjected to the laws of the land. The anxiety and distress of the deceased’s family members further adds the delicateness of the situation. What they need is a helping and guiding hand. Financial advisers/planners can play that role and earn the trust; that could open opportunity for the family members to trust the adviser/planner with their own financial planning and wealth management needs. Farhan Samsudin #FinancialGPS #FinancialPlanning #EstatePlanning

Managing Debt After a Loved One's Death: What You Need to Know- When someone passes away, handling their estate can be emotional and challenging, especially if they leave behind debts. Understanding what happens to those debts and how to manage them is key to a smooth probate process. Call me with your estate administration issues. https://lnkd.in/g53mYDaG