ESTATE ADMINISTRATION LAWYERS
While the prospect of planning a will can be daunting, Tailor Law takes the time to carefully plan your will with you to ensure that your loved ones and your estate are taken care of. Creating a will should not be an excruciating experience. Rather, drafting a will should be a time when you are feeling confident in your choices and in planning for the success of those who you will be leaving behind.
Our team of lawyers will address the content of your will, the expenses associated with funeral costs, any debts you may have, your investments, and any trusts you may wish to set up. Our wills lawyers’ objectives are to save you and your loved ones money on probate fees and to ensure that your taxes are minimized. Our law firm proudly serves clients in Mississauga, North York, Oakville, and throughout the GTA. If you have ever thought about creating a will, but have shied away from it due to time, cost, or uneasiness, our team will be happy to discuss your options during a free consultation. Give us a call any time of day to book your consultation.
HOW IS AN ESTATE DISTRIBUTED?
An estate is typically distributed based on the instructions of the will. If the person who has passed is without a will, this is known as “intestate.” Ontario’s Succession Law Reform Act sets out how the estate will be divided and distributed. In understanding Ontario’s Succession Law Reform Act, the legal team at Tailor Law will detail the distribution of the will and outline various scenarios in which the involved parties could be entitled to make claims of the estate.
WHAT IS AN EXECUTOR? WHAT ARE AN EXECUTOR’S DUTIES?
An executor is someone who is tasked with dividing an estate and covering any debts that the testator (the person who has left the will) may have had, using the estate’s resources. An estate must be administered according to Ontario’s Succession Law Reform Act. Some of the duties that Executors of Estates have are: applying for probate, distributing the estate to beneficiaries, and selling any real estate as per the testator’s wishes.
Additional responsibilities of the executor of the estate include:
- Appraising the assets of the deceased;
- Distributing the assets of the estate;
- Opening an estate bank account to manage expenses;
- Arranging the funeral (unless the will state otherwise); and
- Paying any taxes and/or debts left by the deceased.
ESTATE ADMINISTRATION FEES AND EXPENSES
The fees arising from estate administration extend beyond the cost of the lawyers involved. In Canada / Ontario, the government imposes a tax which must be paid on the total value of the deceased’s estate. This amount is calculated using a sworn affidavit as to the value of the estate. This affidavit is typically drafted and sworn upon applying for a Certificate of Appointment of the estate trustee.
The formula for computing the administrative tax is to add $5 for every $1,000 that the Estate owns, for up to $50,000. For estates that exceed $50,000, $15 is added for every $1,000. For example, an estate that is worth $400,000 would incur administrative taxes of $5,500.
What is NOT included in the estate administration tax calculation?
- Property and real estate located outside of Ontario;
- Insurance owed to any beneficiaries; and
- Jointly held property passing on survivorship.