Hello;
Over the years, we have received numerous questions with regards to estate planning. Here are a few estate planning inquiries with true or false explanations.1 (Scotia Estate and Trust Services)
Common-law and legally married spouses are now treated equally for all purposes under the law. False. In Ontario, only legally married spouses are entitled to share in an intestate distribution.
A beneficiary may not act as executor of a will. False. There are few restrictions on who can act as executor, and beneficiaries are frequently appointed to the role.
In order for an executor to receive compensation, he/she must obtain court pre-approval. False. An Executor may take compensation without court approval if the will provides for it or where all beneficiaries (who must be adult and competent) approve. In all other cases, court approval should be obtained.
An executor is responsible for filing the deceased’s terminal income tax return and any unfiled returns from previous years. True. Take for example of someone who died on 18-Mar-2013. His executor would be responsible for filing his T1 return reporting for the period starting 1-Jan-2013 to the date of death. If the deceased had not yet filed his 2012 return, the executor would be responsible for filing it as well. The executor may also be responsible for any earlier unfiled returns; filing one or more T3 Trust returns; foreign jurisdictions returns; and determining whether to file elective returns.
An executor may incur personal liability for distributing the estate too quickly. True. If an executor proceeds to distribute an estate to the expiration of applicable claims periods (and without first obtaining consent and releases from any potential claimants, such as spouse, dependants and creditors) he may be personally liable.
An executor may incur personal liability for distributing the estate too slowly. True. If, for example, cash legacies remain unpaid one year from the date of death, the executor may be personally liable for interest.
If you die intestate (no will) the government gets your money. False. Your estate is distributed according to the applicable provincial formula. In Ontario, an intestate’s property becomes the property of the Crown if the deceased left no surviving spouse, child, parent, brother, sister, nephew, niece, or next of kin.
If you require further information, please feel free to contact us.
Sincerely,
Mike Busby (18-Dec-2020)
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