Parents who have accumulated a sizable amount of wealth over their lives will likely want to pass their assets on to their children when they pass away. But when an adult child's marriage goes sideways and ends in divorce, those parents may want to ensure that none of their assets go to the estranged partner. Some solid estate beneficiary advice for Ontario residents when it comes to this type of issue is to make safeguards in a will.
A testator may direct specific gifts, known as bequests, to certain surviving friends and family, and then leave the remainder of his or her estate to a surviving spouse or child. This remainder, known as the "residue", typically includes items like the house or a car.
When a loved one passes away, surviving family members and friends may not know what the immediate next steps are to start administering the deceased’s will. The first step is to validate the will with the courts. This is known as obtaining probate.
There are instances when an executor of a will is also a beneficiary of the will. The duties of an executor in Ontario aren't for the faint of heart. There are many things associated with the task and having some estate beneficiary advice to move forward may help the process. When the executor is the adult child of the testator -- or the one who has written the will -- it can be doubly stressful since there may be other family members to appease as well.
People who spend hours fashioning comprehensive estate plans likely want to make sure that the person or persons to whomever they leave their financial assets use them well. How to make the best use of inheritance funds in Ontario is one of the most important pieces of estate beneficiary advice available. People who are left a good chunk of money can plan wisely for their retirement years.
When making a will, some Ontario people want to have full control over what happens to their assets after they die -- even unreasonable control in some cases. Not all restrictions or conditions will be allowed by a probate court. A valid condition placed on an inheritance must be not only legal but also clear and possible. Estate beneficiary advice may be necessary when drafting a will.
Even without estate tax, there is a need for estate planning in Canada. For starters, there is a deemed disposition tax that is applied to the estate. Canada law requires that any investments be deemed as sold upon an individual's death. Any capital gains from that deemed disposition must be reported in a final income tax return.