Final Test Flashcards
How do you advertise for creditors?
In Oshawa, common practice was to run ad 3 times - once a week for 3 weeks
- E.g. Wednesday of this week, Friday of next week and Thursday of the following week
Define Specific Bequests.
Amounts that do not depend on the decision made by the estate trustee in administering the estate.
- An accounting is not normally given to beneficiaries of specific bequests or creditors because the amounts owing to these people are sums certain – that is the amounts do not depend on how the estate was administered.
Name 3 reasons/advantages to informal accounting.
- Sets out the assets at the DOD
- Sets out the debts of the deceased at death
- Easier, simpler and least-expensive
- Can be done in the form of a letter
- Releases must be obtained
- Amounts brought in or earned by the estate trustee
Name 3 things you need to file in order to have your accounts passed.
- A statement of the deceased’s assets owned as of the DOD;
- A statement of all unrealized assets of the estate at the end of the accounting period; and
- A statement of compensation claimed by the estate trustee, management fees, method used in calculation
What must be included in a Statement of Accounts?
- Cover Page, Table of Contents, and Summary
- Statement of Assets at Date of Death
- Capital Account Receipts
- Capital Account Disbursements
- Revenue Account Receipts
- Revenue Account Disbursements
- Investment Account
- Statement of Estate Trustee’s Compensation
- Proposed Distribution of funds
What are the calculations to determine Estate Trustee Compensation?
- 2.5% of receipts to the estate including capital and revenue
- 2.5% of disbursements from the estate including capital and revenue
- 2.5% of monies to be paid to potential residual beneficiaries
What are the 5 factors to determine if estate trustee should be increased or decreased?
- The size of the estate
- The care and responsibility arising from the estate
- The time spent administering the estate
- The skill and ability displayed by the estate trustee
- The success of the estate trustee in the estate administration
What are vouchers?
Receipts - expenditures by the Estate Trustee
- When you pass the accounts whether formally or informally you may be forced to present any voucher for any expenditure that the estate trustee may have.
- Every item that you have under the capital or revenue disbursement requires a voucher
Why do we have accounts passed?
- Releases the Estate Trustee from any further claims
- All beneficiaries are said to be satisfied with the distribution of the estate
What does an estate accounting show?
- The amounts expended during the administration of the estate, and the amounts if any earned by the estate after the deceased’s death.
- The amount claimed for estate trustee compensation
What is an Income Tax Clearance Certificate?
CRA document that confirms that all income taxes on an estate have been paid and the estate trustee is discharged from further responsibility for the estate with respect to such taxes.
What document can be filed when someone does not agree with the Statement of Accounts?
Notice of Objection to Accounts
- Must be served on the estate trustee by any party with a vested interest in the estate
- Must be served 20 days before date set for hearing
What document do beneficiaries sign when they get their money?
- Releases
- Release estate trustee and estate
- Agree to the Statement of Accounts
Name the 6 categories of elder abuse.
- Physical: causing pain, injury or harm to health
- Financial: illegal or improper use of funds or assets, such as theft or fraud
- Psychological: infliction of mental anguish or suffering
- Sexual: non-consensual sexual activity or harassing sexual comments
- Neglect: refusal or failure to provide services or necessary care
What 2 elements must be present for elder abuse?
- Vulnerability
2. Exploitation or neglect
