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In this episode of TR Talks, Geeta speaks with Pamela Liang, an estates and trusts lawyer at Wilson Vukelich LLP. Pamela explains the probate process, including the certificate of appointment of estate trustee with a will and the estate administration tax. She also discusses how executors can sell property before obtaining probate and the importance of family dynamics in estate planning. Pamela dispels common misconceptions about estate planning, such as the belief that putting assets in joint tenancy with children avoids probate. She also covers topics such as capital gains tax on inherited properties, holograph wills, and powers of attorney. Geeta and Pamela discuss the top things to keep in mind for estate planning, including involving beneficiaries in discussions and choosing a responsible executor.
Don't miss out on this opportunity to plan for the future and protect your loved ones.
Shownotes:
- What is Probate? [00:02:40]
- Process by which the executor is given a certificate to act on behalf of the estate
- Certificate of Appointment of Estate Trustee with a Will
- Executor applies to court and pays probate tax (1.5% of deceased's assets)
- Selling Property Before Probate [00:04:25]
- Executors can sell property before probate is obtained
- Sale can be conditional on probate being obtained
- Probate can take 6-9 months but can be expedited with completed agreements of purchase and sale
- Family Dynamics in Estate Planning [00:07:50]
- Involve siblings or beneficiaries in discussions about real estate
- Add dispute resolution clauses to documents to anticipate potential problems and avoid conflicts
- Common Misconceptions in Estate Planning [00:12:25]
- Putting assets in joint tenancy with children does not avoid probate
- Landmark case of Pecore (2007) established a presumption that adult children on title are there for convenience purposes
- Capital Gains Tax on Inherited Properties [00:14:30]
- Principal residence exemption can be used for a principal residence
- Leaving multiple properties can create a burden on children or executor to fund the capital gains tax
- Life insurance policies can be designated to fund capital gains tax
- Importance of Estate Planning [00:17:40]
- Ensures assets are distributed according to wishes and protects beneficiaries from potential creditors or predators
- Ensures minor children are taken care of by designated guardian and reduces stress for loved ones
- Holograph Wills [00:20:05]
- Handwritten wills that can be valid in certain circumstances
- Must clearly outline the testator's wishes and be signed and dated
- May need to go before the court for interpretation
- Powers of Attorney [00:22:00]
- Appoints someone to make decisions on behalf of the testator if they become incapable
- Different types of powers of attorney for property and personal care
- Helps avoid costly and time-consuming guardianship applications
- Top 3-4 Things to Keep in Mind for Estate Planning [00:24:00]
- Consider how assets should be distributed in different scenarios
- Work with an estates practitioner to map out the structure and strategy
- Consider creating a will in a different jurisdiction if there are assets outside of Canada
- Choose an executor who is organi
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