Call Us Today: 604-468-8900
Schedule An Appointment With Us 604-468-8900
Garton & Harris
  • Home
  • About Us
    • Philip J. Dadson
    • Stuart F. Ross
    • Patrick Verrier
  • Wills and Estates
    • Estate Planning
    • Wills
    • Powers of Attorney
    • Representation Agreements, Living Wills
    • Trusts
    • Probate and Estate Administration
      • Probate With And Without A Will
    • Will Challenges
  • Business Transactions
    • Buying Or Selling A Business
    • Incorporation Or Setting Up A Business
  • Litigation
    • Business Disputes
    • Construction Disputes
  • Real Estate
    • Residential Purchase And Sale
    • Commercial Real Estate
    • Property Development
      • Subdivision
    • Foreclosures
  • Family Law
  • Blog
  • Contact
  • Menu Menu

Despite writing wills, trusts and prenups, heirs may still fight

May 24, 2017/in Wills /by gartonandharris

Complicated family dynamics can sometimes undo even seemingly thorough estate planning. Those who leave wills, trusts and more for the distribution of their estates, likely go to their final rests believing the way is clear for their heirs to benefit from their hard work. Sadly, this is not always the case. A celebrity case taking place south of British Columbia tells a cautionary tale for anyone planning the transfer of his or her estate.

Canadian actor Alan Thicke passed away Dec. 13, 2016. Before he died, Thicke set up a living trust to oversee the handoff of his estate. His two eldest sons are co-trustees. It was Thicke’s intention to divide his estate between his three sons and his third wife.

According to the terms of the trust, the three boys will share Thicke’s ranch, 60 percent of his estate and 75 percent of his personal items. The remaining 40 percent of the estate and 25 percent of the personal effects go to his wife, along with a $500,000 life insurance policy and his pension and union benefits. She is also entitled to live at the ranch and keep the furnishings, so long as she pays to maintain the property. Her share of the estate was spelled out in a prenuptial agreement signed in 2005.

Thicke’s sons claim his widow wants more than her allotted share, however, and has requested all parties enter family mediation to resolve the issue. They allege she believes there are numerous problems with the prenup and the trust, and are accusing her of using strong-arm tactics to force the matter. Her lawyer has countered their allegations, claiming it is the sons who are using a smear tactic to stay her hand.

Though few people’s legal disputes have the power to make tabloid headlines, they can disrupt the process of estate administration. It is an unfortunate reality that squabbles over assets can happen after a leading family member passes away. Careful attention to the crafting of wills and other estate planning measures may reduce the chance, however. With the help of a skilled British Columbia lawyer, such incidents might be avoided.

Source: wtvr.com, “Alan Thicke’s sons, widow fight over estate“, May 18, 2017

https://gartonandharris.com/wp-content/uploads/2020/11/garton-and-harris-logo-full-02.png 0 0 gartonandharris https://gartonandharris.com/wp-content/uploads/2020/11/garton-and-harris-logo-full-02.png gartonandharris2017-05-24 00:00:002020-09-18 20:16:18Despite writing wills, trusts and prenups, heirs may still fight

A power of attorney makes sense for Canadians and their parents

May 16, 2017/in Power of Attorney /by gartonandharris

Planning for the future means being proactive instead of reactive. For many people, this is difficult to do. Barring an unfortunate incident, however, the fact is everyone grows old and preparing for that inevitability makes good sense. Writing a will and setting up a power of attorney are excellent examples. Unfortunately, many people in British Columbia are not ready for what’s to come, even though they know they should be.

According to numbers from the CIBC, 90 percent of Canadians with parents over the age of 65 recognize the importance of discussing financial planning and caregiving with their moms and dads. However, less than two-thirds have actually done so. When it comes to themselves, 68 percent of the same group of Canadians have wills drawn up, but only 23 percent have done any financial planning for late in life, and less than half have a power of attorney prepared.

A vice-president at the CIBC believes many people are afraid to broach the subject with their parents for fear they will seem as if they only care about the money. Others may feel as if there will always be time to talk about it later. The truth is, however, that while Canadians are living longer lives, around 26 percent of people in this country die before the age of 70.

Preparing for the future is for everyone, the young and the old. It is important for men and women to understand their parents’ plans, and to make plans of their own. A power of attorney can provide remarkable peace of mind for older parents and adult children alike. To make plans that will really work, it may be best to consult with a British Columbia estate lawyer.

Source: ca.pressfrom.com, “Retirees need to start thinking ahead“, May 5, 2017

https://gartonandharris.com/wp-content/uploads/2020/11/garton-and-harris-logo-full-02.png 0 0 gartonandharris https://gartonandharris.com/wp-content/uploads/2020/11/garton-and-harris-logo-full-02.png gartonandharris2017-05-16 00:00:002020-09-18 20:16:30A power of attorney makes sense for Canadians and their parents

Wills not updated may have unintended consequences

May 9, 2017/in Wills /by gartonandharris

In this age of modern conveniences, the concept of “set it and forget it” is familiar to most. People expect to be able to prepare something once, and then let it be. While this may work with PVRs, the same cannot be said for wills. Making a will is a very good idea for any man or woman in British Columbia, but as life changes, so too should a person’s will. Failing to do so could lead to unexpected results.

An Ontario man who believed he had been unintentionally left out of his grandmother’s will went to court to fight for a share of the estate. The woman passed away at the age of 94, leaving all of her assets to her husband. Her husband predeceased her, however. The will stipulated that if her husband died first, the estate was to be split between their two sons. Unfortunately, one of her sons had also passed away before her.

Her late son had two sons of his own, to whom his portion of the inheritance was to go, according to the terms of the will. The oldest of the two boys was born out of wedlock 28 years ago. The will, however, dates to 1977, and at that time, illegitimate children were not recognized as legal descendants. Despite the fact his grandparents created an RESP for the young man, a judge ruled he had no entitlement to a portion of the estate because of the statutes at the time of writing.

Although the man evidently had a relationship with his grandparents, he received nothing from their estate. No one will ever know if this is what they intended, but it seems unlikely. Families change with time, and by not changing one’s estate planning to reflect those changes, some heirs could end up left unintentionally excluded from a share of the inheritance. Any men or women wishing to create or update their wills in British Columbia may wish to do so with the assistance of a lawyer.

Source: cnews.canoe.com, “Born out wedlock, man can’t inherit from grandma because will is from 1977: Ontario court“, Paola Loriggio, May 6, 2017

https://gartonandharris.com/wp-content/uploads/2020/11/garton-and-harris-logo-full-02.png 0 0 gartonandharris https://gartonandharris.com/wp-content/uploads/2020/11/garton-and-harris-logo-full-02.png gartonandharris2017-05-09 00:00:002020-09-18 20:17:39Wills not updated may have unintended consequences

Are wills a good way to transfer assets in secret?

May 2, 2017/in Wills /by gartonandharris

Many people come and go during a lifetime, but some special ones will remain. When thinking about estate planning, it may be that a person wants to leave a gift for a special someone in his or her life but feels it’s best to make the bequest a secret. Can wills be used to transfer assets in secrecy, or is there a better way to give a clandestine gift in British Columbia?

Whatever the reason for secrecy may be, a will might not be the most effective way to make the bequest. Wills become a matter of public record after probate, and the contents will no longer be a secret. Using vague language may cause confusion and could lead to a contesting of the will.

It may be possible to prearrange a trust with an individual who is aware of the situation. In theory, one could name this person in the will, but with the spoken understanding that he or she will then transfer the asset to the intended recipient. The biggest flaw in this scenario is that the trusted accomplice has no legal obligation to give up the asset if he or she chooses not to.

A professional trust company may provide a more reliable result. A trust can be set up to pay out to the secret party after the gift-giver passes away. The trust is not part of the estate, and as such will not be revealed during probate or administration. An insurance policy could work in a similar manner. Unfortunately, there is always the risk that an attentive person might notice the outflow of money (assuming the bequest is monetary) from a bank account and attempt to trace it.

Keeping a secret is a challenge at any stage in life and may continue to be so after death. Any person with a challenging estate planning situation would be well advised to speak with a lawyer about how to handle his or her unique issues. A lawyer’s experience with wills and trusts in British Columbia may be the secret asset needed to be successful.

Source: metronews.ca, “Leaving money to a secret beneficiary is very, very tricky, experts warn”, David Hodges, April 27, 2017

https://gartonandharris.com/wp-content/uploads/2020/11/garton-and-harris-logo-full-02.png 0 0 gartonandharris https://gartonandharris.com/wp-content/uploads/2020/11/garton-and-harris-logo-full-02.png gartonandharris2017-05-02 00:00:002020-09-18 20:17:58Are wills a good way to transfer assets in secret?

Categories

  • Blog
  • Civil Appeals
  • Civil Litigation
  • Class Action Litigation
  • Estate Administration & Probate
  • Federal Appeals
  • Power of Attorney
  • Uncategorized
  • Wills

Recent Posts

  • Are do-it-yourself wills worth the risk?
  • What can go wrong when buying a business in Canada?
  • How to “stress test” a will throughout one’s life
  • Are wills necessary if all assets have joint ownership?
  • How should individuals update their wills following a divorce?

Archives

  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014

Schedule An Appointment With Us

SEND US AN EMAIL

© 2020 by Garton & Harris. All rights reserved.
Disclaimer | Site Map | Privacy Policy

REVIEW OUR FIRM
Scroll to top