TEST #1 Flashcards
Define Succession Law Reform Act
Determines how the distribution of an estate when there is no will
Define the Family Law Act
Prevents income from an estate from becoming net family property
What are Secondary Wills?
Wills done in order to pay less estate administration tax
What do you know about wills? (6 points)
- Must be at least 18 years old to have one
- Unless you are a sailor at sea on the course of a voyage
- Previously married
- Will made in contemplation of marriage
- Becomes effective as soon as you die
- Holograph wills must be handwritten in its entirety
What do you know about Estates?
- Property held jointly does not form part of the estate
- Life insurance proceeds with a specific beneficiary (not the estate)
- Administration bond is required for estate trustees if they are residents of Ontario
What is “Renunciation of Estate Trustee”
When an appointed estate trustee does not want to act
Define “Per Stripes”
Lineal Descendants
What is the Henson Trust?
Trust fund set up for infirm children - so that ODSP does not cut their monthly payments
What is “Dependent’s Relief”
- Solely rely on the testator for financial or personal support
- 6 months from date of death
What are the Reasons for Challenging the Validity of a Will?
- Testamentary Capacity
- Undue Influence
- Fraud/will not signed properly
- Notice of Objection – first document to file when challenging the will
What must be considered when electing to claim under the FLA?
- Has 6 months from D.O.D. to make an election under the FLA
- Once Form 1 filed - cannot be avoided - spouse takes what she will under the FLA
- Spouse’s entitlement under the will is voided
- Can only be done when the spouse is not the only beneficiary under the will
- Valuation date - date before D.O.D
What should NOT be included when calculating family assets?
- money received from personal injury claims or;
- monies received from inheritances
Can a spouse act as an estate trustee?
NO
What happens if a spouse elects to claim and her share is less than an insurance policy she was getting?
If spouse elects to claim and if her share is less than an insurance policy she was getting she will have to give back the estate the overpayment
What is the Estate Administration Tax?
- $5 per $1000 up to $50,000
- $15 per $1000 over $50,000
