Wills CAN Summer 2024 PDF

TABLE OF CONTENTS Ch. 1 – Wills and Intestate Succession................................................................................................................................................................................................................................6 1.03 The Estate (p. 1 R).............................................................................................................................................................................................................................................................. 6 1.04 Disposition of Property by Will (p. 2 R)............................................................................................................................................................................................................................... 6 For a will to be effective................................................................................................................................................................................................................................................ 6 1.05 Disposition of Property on Intestacy (p. 2 BR)..................................................................................................................................................................................................................... 6 Spouse (p. 4 L)..................................................................................................................................................................................................................................................................... 7 Reconciliation:............................................................................................................................................................................................................................................................... 7 Spousal Home................................................................................................................................................................................................................................................................ 7 Descendant (p. 4 L B)........................................................................................................................................................................................................................................................... 7 Indian Act (p. 4 BR).............................................................................................................................................................................................................................................................. 8 Ch. 2 – Validity of Wills and Interpretation (p. 6)................................................................................................................................................................................................................8 2.01 Formal requirements under WESA (p. 6)............................................................................................................................................................................................................................ 8 Some changes after COVID............................................................................................................................................................................................................................................ 8 Exceptions for people in military................................................................................................................................................................................................................................... 8 Signing Witnesses (p. 6 R).............................................................................................................................................................................................................................................. 9 2.02 Curing Formal Deficiencies in Wills (s.58) (p. 7 L)............................................................................................................................................................................................................... 9 2.03 Conflict of Law – Wills made outside BC/Estate Property outside bc (p. 7 R)...................................................................................................................................................................... 9 Formal Validity:............................................................................................................................................................................................................................................................. 9 2.04 Wills by Indigenous People (p. 8 L)................................................................................................................................................................................................................................... 10 2.05 Revoking a Will (p. 8 L)..................................................................................................................................................................................................................................................... 10 Non-electronic will...................................................................................................................................................................................................................................................... 10 Electronic will.............................................................................................................................................................................................................................................................. 10 2.06 Altering a Will (p. 9 L)....................................................................................................................................................................................................................................................... 10 Three possible methods to change (new will, codicil, interlineation):......................................................................................................................................................................... 10 2.07 Republishing and Reviving a Will (p. 9 BR)....................................................................................................................................................................................................................... 11 Revival......................................................................................................................................................................................................................................................................... 11 Republication.............................................................................................................................................................................................................................................................. 11 Doctrine of incorporation by reference....................................................................................................................................................................................................................... 11 2.08 Special Types of Wills....................................................................................................................................................................................................................................................... 11 Mutual Will.................................................................................................................................................................................................................................................................. 11 Holograph Will............................................................................................................................................................................................................................................................. 11 2.09 Testamentary Gifts (Lapse and Ademption and survivorship) (p. 10 R)............................................................................................................................................................................ 11 Ademption................................................................................................................................................................................................................................................................... 11 Lapse........................................................................................................................................................................................................................................................................... 12 Survivorship................................................................................................................................................................................................................................................................. 12 Ch. 3 – Testamentary Capacity (p. 12)............................................................................................................................................................................................................................... 12 3.01 Other Requirements for a Valid Will................................................................................................................................................................................................................................. 12 3.02 Capacity of Minors (p. 12 L).............................................................................................................................................................................................................................................. 12 3.03 Test for Mental Capacity (p. 12 BL).................................................................................................................................................................................................................................. 12 3.04 Grounds for attacking Capacity (p. 12 BR)........................................................................................................................................................................................................................ 12 (1) Delusions (p. 13 L)........................................................................................................................................................................................................................................................ 12 (2) Dementia (p. 13 L)........................................................................................................................................................................................................................................................ 13 3.05 Burden of Proof – Testamentary Capacity (p. 13 R).......................................................................................................................................................................................................... 13 Question of testamentary capacity is one of degree................................................................................................................................................................................................... 13 Practice Tips and Advice re: Mental Capacity:............................................................................................................................................................................................................. 14 3.06 Burden of Proof – Knowledge and Approval (p. 15 L)....................................................................................................................................................................................................... 14 3.07 Suspicious Circumstances (p. 16 L)................................................................................................................................................................................................................................... 14 Burden of Proof Re: General Validity of the will (p. 17 L)................................................................................................................................................................................................... 15 3.08 Undue Influence (p. 18 L)................................................................................................................................................................................................................................................. 15 Burden of proof........................................................................................................................................................................................................................................................... 16 3.09 Declaring Wills Void Under the Indian Act (p. 18 R).......................................................................................................................................................................................................... 16 Ch. 4 – Preparing a Will (p. 19)......................................................................................................................................................................................................................................... 16 4.02 Taking Instructions (p. 19 L)............................................................................................................................................................................................................................................. 16 Couples Making Will Together:........................................................................................................................................................................................................................ 16 ✓ If client is elderly/ill at time of instructions..................................................................................................................................................................................................... 16 ✓ If dispositions are likely to be contentious with family.................................................................................................................................................................................... 16 1 (6) Naming executors and trustees (p. 21 L)...................................................................................................................................................................................................................... 17 Appointment of executor and trustee......................................................................................................................................................................................................................... 17 Executor’s duties:........................................................................................................................................................................................................................................................ 17 Typical Executor Types................................................................................................................................................................................................................................................ 17 Executor/Trustee Compensation................................................................................................................................................................................................................................. 18 (7) Naming Beneficiaries (p. 23 BR).................................................................................................................................................................................................................................... 18 (8) Tax Considerations (p. 24 BR)....................................................................................................................................................................................................................................... 19 (9) Naming Guardians (p. 25 L).......................................................................................................................................................................................................................................... 19 Minor (under 19) is legally considered an “infant” and requires a legal guardian........................................................................................................................................................ 19 Guardian may appoint a successor guardian............................................................................................................................................................................................................... 19 Death of guardian without successor guardian............................................................................................................................................................................................................ 19 (10) Enduring Powers of Attorney, Representation Agreements and Committeeship (p. 25 R)......................................................................................................................................... 19 Enduring power of attorney........................................................................................................................................................................................................................................ 20 Representation agreement.......................................................................................................................................................................................................................................... 20 Adult guardianship by committee or public guardian and trustee............................................................................................................................................................................... 21 Authority of minister under Indian Act........................................................................................................................................................................................................................ 21 Temporary Substitute Decision Maker selected by the healthcare provider............................................................................................................................................................... 21 Advance Directives...................................................................................................................................................................................................................................................... 21 (11) using a memorandum................................................................................................................................................................................................................................................. 21 4.03 Circumstances Requiring Special Consideration (p. 30 L).................................................................................................................................................................................................. 21 Homestead / dower legislation.................................................................................................................................................................................................................................... 22 Restrictions on alienation............................................................................................................................................................................................................................................ 22 Life insurance declarations.......................................................................................................................................................................................................................................... 22 RRSP and similar assets............................................................................................................................................................................................................................................... 22 Charitable gifts............................................................................................................................................................................................................................................................ 22 Rule against perpetuities............................................................................................................................................................................................................................................. 22 Termination, revocation and variation of trusts.......................................................................................................................................................................................................... 22 Beneficiaries receiving disability assistance................................................................................................................................................................................................................. 23 4.04 Practical Tips For Drafting................................................................................................................................................................................................................................................ 23 Organize contents of the Will (Format/Content)......................................................................................................................................................................................................... 23 Drafting dispositive clauses (p. 34 L).................................................................................................................................................................................................................................. 24 Dispositive clauses must be specifically drafted to reflect WM’s instructions............................................................................................................................................................. 24 Is it desirable to provide for survivorship period in case of outright gifts.................................................................................................................................................................... 24 When creating ongoing trusts..................................................................................................................................................................................................................................... 24 Capital and Stirpital Distributions................................................................................................................................................................................................................................ 25 Clauses benefiting the executor and trustee (p. 38 L)........................................................................................................................................................................................................ 25 Purchasing assets........................................................................................................................................................................................................................................................ 25 Remuneration.............................................................................................................................................................................................................................................................. 25 Employing experts....................................................................................................................................................................................................................................................... 25 Gifts to E/T.................................................................................................................................................................................................................................................................. 25 Electronic assets.......................................................................................................................................................................................................................................................... 25 Common Drafting Pitfalls (p. 38 L B).................................................................................................................................................................................................................................. 25 Class gifts..................................................................................................................................................................................................................................................................... 25 Ademption................................................................................................................................................................................................................................................................... 25 Gifts to Infants............................................................................................................................................................................................................................................................. 26 4.05 Will Execution Procedures (p. 39 L).................................................................................................................................................................................................................................. 26 Atttestation Clause...................................................................................................................................................................................................................................................... 26 4.06 Post-Execution Procedures............................................................................................................................................................................................................................................... 26 Wills Notices................................................................................................................................................................................................................................................................ 26 Wills Storage................................................................................................................................................................................................................................................................ 26 Reporting to Client...................................................................................................................................................................................................................................................... 27 Destroying prior wills and will files.............................................................................................................................................................................................................................. 27 Releasing a will from safekeeping................................................................................................................................................................................................................................ 27 Releasing a wills file..................................................................................................................................................................................................................................................... 27 Ch. 5 – Advising Prospective Personal Representative....................................................................................................................................................................................................... 27 5.01 Introduction to Probate and Estate Administration (p. 41)............................................................................................................................................................................................... 27 Probate........................................................................................................................................................................................................................................................................ 27 What is a Personal Representative?.................................................................................................................................................................................................................................. 27 5.02 Identifying the Personal Representative (p. 41 R)............................................................................................................................................................................................................. 27 5.03 If your client is deciding whether to act as PR (p. 41 BR).................................................................................................................................................................................................. 28 Renunciation of appointment (p. 41 BL)............................................................................................................................................................................................................................ 28 5.04 If Client has decided to act (Immediate Responsibilities) (p. 42 R).................................................................................................................................................................................... 28 Disposition of remains................................................................................................................................................................................................................................................. 28 Care / management of assets [STEPS]......................................................................................................................................................................................................................... 28 Dealing with liabilities.................................................................................................................................................................................................................................................. 29 Preparing to administer estate.................................................................................................................................................................................................................................... 29 Accounting and expenses prior to grant...................................................................................................................................................................................................................... 29 Safety deposit boxes.................................................................................................................................................................................................................................................... 29 Other Duties and Powers of Executors and Administrators (skips ahead).......................................................................................................................................................................... 29 Where two or more PRs.............................................................................................................................................................................................................................................. 29 Duty to convert unauthorized or wasting assets and investments.............................................................................................................................................................................. 29 Power to sell assets..................................................................................................................................................................................................................................................... 29 2 Payment for Infants..................................................................................................................................................................................................................................................... 29 Defending actions in representative capacity.............................................................................................................................................................................................................. 30 5.05 Preparing to Apply for Probate or Administration (p. 42 R).............................................................................................................................................................................................. 30 Gather information............................................................................................................................................................................................................................................................ 30 Review will and advise client (PR) of terms (p. 44 L).......................................................................................................................................................................................................... 30 Choosing applicant for letters of administration (p. 45 R).................................................................................................................................................................................................. 31 Murder (P. 46 L)................................................................................................................................................................................................................................................................. 31 Survivorship (P. 46 R)......................................................................................................................................................................................................................................................... 31 Simultaneous deaths................................................................................................................................................................................................................................................... 31 Presumption of Death – Missing and presumed dead (P. 46 R)......................................................................................................................................................................................... 31 Scope of lawyer’s retainer (p. 47 R)................................................................................................................................................................................................................................... 31 Insolvent estates (p. 48 L).................................................................................................................................................................................................................................................. 31 Estates of Indigenous people (p. 47 8)............................................................................................................................................................................................................................... 31 5.06 Pubic Guardian and Trustee as Official Administrator (p. 48 L)........................................................................................................................................................................................ 31 5.07 guardians and committees............................................................................................................................................................................................................................................... 32 Ch. 6 – Applications for Probate Administration............................................................................................................................................................................................................... 32 6.02 Jurisdiction (p. 49 L)......................................................................................................................................................................................................................................................... 32 6.04 place and time of an application...................................................................................................................................................................................................................................... 32 6.05 Probate Applications (Dying w/Will + named executor) (p. 50 L)...................................................................................................................................................................................... 32 A. Documents Required for Typical Probate Application............................................................................................................................................................................................. 32 Cheque or bank draft for Probate Filing Fees............................................................................................................................................................................................................. 33 B. Other affidavits that may be required..................................................................................................................................................................................................................... 33 C. Procedure................................................................................................................................................................................................................................................................ 33 D. Probate Fees........................................................................................................................................................................................................................................................... 33 Notice of probate application (p. 52 R).............................................................................................................................................................................................................................. 33 Notice must be given to............................................................................................................................................................................................................................................... 33 Method of giving notice............................................................................................................................................................................................................................................... 34 Variations of Grant Where Executor Cannot Act (dies, disqualified, missing) (p. 54 R)...................................................................................................................................................... 34 Special forms of probate (p. 55 R)..................................................................................................................................................................................................................................... 34 Executor According to Tenor of a Will......................................................................................................................................................................................................................... 34 Proof of Copy of a Will................................................................................................................................................................................................................................................. 35 Proof of Copy of Will from Another Jurisdiction.......................................................................................................................................................................................................... 35 Grant Save and Except Caeterorum (Limited as to Powers)......................................................................................................................................................................................... 35 6.06 Administration Applications (dying instate)(p. 56 L)......................................................................................................................................................................................................... 35 Documents Required for Administration Application.................................................................................................................................................................................................. 35 Additional documents required for certain applications.............................................................................................................................................................................................. 35 Other grants of administration (p. 57 L)............................................................................................................................................................................................................................. 35 Small estate................................................................................................................................................................................................................................................................ 36 Administration with will annexed.............................................................................................................................................................................................................................. 36 Administration Ad Colligenda Bona (to collect the goods)......................................................................................................................................................................................... 36 Administration Pendente Lite (during litigation)......................................................................................................................................................................................................... 36 Administration by Attorney........................................................................................................................................................................................................................................ 36 Administration de Bonis Non (of goods not administered)......................................................................................................................................................................................... 36 Security for grant of administration (p. 56 R B).................................................................................................................................................................................................................. 36 Ch. 7 – Other Applications................................................................................................................................................................................................................................................ 36 7.02 Applications before Grant (p. 58 L)................................................................................................................................................................................................................................... 36 Notice of Dispute in Form P29.................................................................................................................................................................................................................................... 36 Citations to Apply for Probate (to get E to apply)...................................................................................................................................................................................................... 36 Subpoena for Testamentary Document or Grant....................................................................................................................................................................................................... 37 WESA, s. 123 (Order to Produce)................................................................................................................................................................................................................................ 37 7.03 Applications for Rectification and Construction of Wills (p. 60 L)..................................................................................................................................................................................... 37 probate jurisdiction in Rectification (Fixing Problems with a will)...................................................................................................................................................................................... 37 7.04 Construction (Interpretation) (p. 61 L)....................................................................................................................................................................................................................... 37 Application procedure................................................................................................................................................................................................................................................. 38 Two general approaches to construction:................................................................................................................................................................................................................... 38 Rules of construction................................................................................................................................................................................................................................................... 38 7.05 curing deficiencies under s.58 (p. 62 R)............................................................................................................................................................................................................................ 38 7.06 application for advice and directions (p. 63 R).................................................................................................................................................................................................................. 38 7.07 Dispute Resolution (p. 63 BR)........................................................................................................................................................................................................................................... 39 Proof in solemn form (p. 63 R B)........................................................................................................................................................................................................................................ 39 Disputes among executors and trustees (p. 64 L).............................................................................................................................................................................................................. 39 Revoking the grant (p. 64 R).............................................................................................................................................................................................................................................. 39 Removing an executor or trustee (p. 65 R #4)................................................................................................................................................................................................................... 40 A. Jurisdiction.............................................................................................................................................................................................................................................................. 40 B. Reasons to remove.................................................................................................................................................................................................................................................. 40 Other Applications................................................................................................................................................................................................................................................................... 40 Giving Trustees New Powers....................................................................................................................................................................................................................................... 40 3 Cy-pres........................................................................................................................................................................................................................................................................ 40 Distribution under Direction of the Court.................................................................................................................................................................................................................... 40 Ch. 8 – Assets and Liabilities............................................................................................................................................................................................................................................. 40 8.01 Preparing an Inventory (p. 68)......................................................................................................................................................................................................................................... 40 8.02 Assets Passing in the Will (p. 68 R)................................................................................................................................................................................................................................... 41 8.03 Assets Passing Outside the Will (P. 68 BR)........................................................................................................................................................................................................................ 41 Joint tenancies............................................................................................................................................................................................................................................................. 41 Life Insurance Policies and Proceeds........................................................................................................................................................................................................................... 41 Pensions and retirement plans.................................................................................................................................................................................................................................... 41 Imminent Death Donation........................................................................................................................................................................................................................................... 41 Powers of Appointment............................................................................................................................................................................................................................................... 41 Employment benefits.................................................................................................................................................................................................................................................. 42 Contractual and other obligations............................................................................................................................................................................................................................... 42 Insolvent and Bankrupt Estates (71 L)......................................................................................................................................................................................................................... 42 Statutory benefits........................................................................................................................................................................................................................................................ 42 Voluntary Payments from Employer............................................................................................................................................................................................................................ 42 Family property........................................................................................................................................................................................................................................................... 42 Community Property................................................................................................................................................................................................................................................... 42 Interests in Trusts........................................................................................................................................................................................................................................................ 42 Designated Beneficiary Investments............................................................................................................................................................................................................................ 42 8.04 liabilities (p. 71 R)............................................................................................................................................................................................................................................................. 42 8.05 Valuation (p. 71 R)........................................................................................................................................................................................................................................................... 42 Purposes of valuing estate assets................................................................................................................................................................................................................................ 42 8.06 Authorization to Obtain Information (p. 72 L).................................................................................................................................................................................................................. 42 8.07 Location of Assets (p. 72 R).............................................................................................................................................................................................................................................. 43 8.08 Conflict of Laws (p. 73)..................................................................................................................................................................................................................................................... 43 Ch. 9 – Transferring Assets and Paying Tax....................................................................................................................................................................................................................... 43 9.02 Executor’s year (p. 74 L)................................................................................................................................................................................................................................................... 43 The Executor’s Year..................................................................................................................................................................................................................................................... 43 Final Return................................................................................................................................................................................................................................................................. 43 Separate returns.......................................................................................................................................................................................................................................................... 43 9.03 iTA Implications for Transferring Assets (74 BR)............................................................................................................................................................................................................... 44 Spouses and Spousal Trusts (p. 76 L)................................................................................................................................................................................................................................. 44 When capital property passes to spouse or spousal trust............................................................................................................................................................................... 44 o Land Inventory................................................................................................................................................................................................................................................ 44 Rollover conditions.......................................................................................................................................................................................................................................... 44 Reserves.......................................................................................................................................................................................................................................................... 44 9.04 Non-tax legislation affecting Transfer (p. 77 L)................................................................................................................................................................................................................ 45 1. wesa distribution delay (77 L)........................................................................................................................................................................................................................................ 45 2. variation proceedings (77 R).......................................................................................................................................................................................................................................... 45 3. intestacy (78 L)............................................................................................................................................................................................................................................................... 45 Advances to children....................................................................................................................................................................................................................................... 45 Spouses and Multiple Spouses........................................................................................................................................................................................................................ 45 9.05 Procedure for transmission and transfer (p. 78 R)............................................................................................................................................................................................................ 45 Real property.............................................................................................................................................................................................................................................................. 45 Personal property....................................................................................................................................................................................................................................................... 46 Ch. 10 – Remuneration and Accounts............................................................................................................................................................................................................................... 46 10.02 Personal Representative Remuneration (p. 81 L)............................................................................................................................................................................................................ 46 (1) Entitlement to remuneration (p. 81 L).......................................................................................................................................................................................................................... 46 (2) Amount of Remuneration (p. 81 R)............................................................................................................................................................................................................................... 46 (3) Expenses (p. 82 R)........................................................................................................................................................................................................................................................ 47 (4) Procedure and payment (p. 82 R)................................................................................................................................................................................................................................. 47 10.03 Solicitor Remuneration (p. 83 L)..................................................................................................................................................................................................................................... 48 (1) Entitlement to remuneration (p. 83 L B)....................................................................................................................................................................................................................... 48 (2) Nature of lawyer’s services (p. 84 L)............................................................................................................................................................................................................................. 48 (3) Assessment of account (p. 84 R)................................................................................................................................................................................................................................... 49 10.04 PR’s Duty to Account (p. 85 L)........................................................................................................................................................................................................................................ 49 Source of duty (p. 85 L)...................................................................................................................................................................................................................................................... 49 Scope of Duty (p. 85 L)....................................................................................................................................................................................................................................................... 49 Statutory requirement to pass accounts (p. 85 R).............................................................................................................................................................................................................. 49 Procedure for passing accounts (p. 85 R B)........................................................................................................................................................................................................................ 50 Approval of accounts (p. 86 R)........................................................................................................................................................................................................................................... 50 Discharge of PR (p. 87 L).................................................................................................................................................................................................................................................... 51 4 Ch. 11 – Solicitors’ Duties and Responsibilities.................................................................................................................................................................................................................. 51 11.01 Duty of Care in Taking Instructions (p. 88)...................................................................................................................................................................................................................... 51 Steps you can take to protect yourself from negligence actions.................................................................................................................................................................................. 51 11.02 Duty of Care to Beneficiaries (p. 89 L)............................................................................................................................................................................................................................ 51 Disappointed beneficiaries of failed gifts (p. 89 L T).......................................................................................................................................................................................................... 51 Disappointed beneficiaries not provided for (p. 89 R)....................................................................................................................................................................................................... 52 Disappointed beneficiaries disinherited (p. 90 R).............................................................................................................................................................................................................. 52 11.03 Common Errors (p. 91 L)................................................................................................................................................................................................................................................. 52 Specific risks that often result in claims....................................................................................................................................................................................................................... 52 Examples of acts of alleged malpractice brought against lawyers............................................................................................................................................................................... 52 Examples of technical faults........................................................................................................................................................................................................................................ 53 Ch. 12 – Creditors............................................................................................................................................................................................................................................................. 53 Types of Potential Claims (p. 92 L)........................................................................................................................................................................................................................................... 53 Defences (p. 93 L).............................................................................................................................................................................................................................................................. 53 Liabilities of the Deceased (p. 93 L).......................................................................................................................................................................................................................................... 54 12.06 Administering the Liabilities (p. 95 L B).......................................................................................................................................................................................................................... 55 Searches and inquiries (p. 95 R)......................................................................................................................................................................................................................................... 55 Advertising for creditors.............................................................................................................................................................................................................................................. 55 Proof of claims (p. 96 L)..................................................................................................................................................................................................................................................... 55 PR must decide whether or not to admit a claim......................................................................................................................................................................................................... 55 Payment of liabilities (p. 96 R)........................................................................................................................................................................................................................................... 55 Distribution under direction of court (p. 96 R B)................................................................................................................................................................................................................ 56 Insolvent Estates (p. 97 L).................................................................................................................................................................................................................................................. 56 Ch. 13 – Variation of Wills (WESA s.60)............................................................................................................................................................................................................................. 56 13.02 Jurisdiction (p. 98 R)....................................................................................................................................................................................................................................................... 56 Requirements to establish jurisdiction under WESA s. 60.................................................................................................................................................................................................. 56 (a) Valid will................................................................................................................................................................................................................................................................. 56 (b) Qualifying assets.................................................................................................................................................................................................................................................... 56 (c) Qualified applicant................................................................................................................................................................................................................................................. 57 13.03 Procedure (p. 100 L)....................................................................................................................................................................................................................................................... 57 Commencement and service....................................................................................................................................................................................................................................... 57 Parties......................................................................................................................................................................................................................................................................... 57 Representative actions................................................................................................................................................................................................................................................ 57 Special considerations re land..................................................................................................................................................................................................................................... 57 Settlement................................................................................................................................................................................................................................................................... 57 Mediation.................................................................................................................................................................................................................................................................... 57 Evidence...................................................................................................................................................................................................................................................................... 57 Order and Costs........................................................................................................................................................................................................................................................... 58 Appeal, variation and recission.................................................................................................................................................................................................................................... 58 13.04 Role of the Executor in Wills variations (p. 102 L)........................................................................................................................................................................................................... 58 13.05 Duty to Make Adequate Provision (p. 102 R).................................................................................................................................................................................................................. 58 Factors to consider in determining WM’s moral and legal obligations........................................................................................................................................................................ 59 13.06 Circumstances Precluding Relief (p. 105 R)..................................................................................................................................................................................................................... 60 P’s character/conduct.................................................................................................................................................................................................................................................. 60 Actions by spouses...................................................................................................................................................................................................................................................... 60 Actions by children...................................................................................................................................................................................................................................................... 60 13.07 Determining Quantum (p. 108 R)................................................................................................................................................................................................................................... 61 Ch. 14 – Other Claims Against the Estate.......................................................................................................................................................................................................................... 62 14.02 Challenges to a Will (p. 113 L)........................................................................................................................................................................................................................................ 62 Dispute over estate of registered Indian...................................................................................................................................................................................................................... 63 14.03 Claims Against an Estate on Intestacy (p. 113 R)............................................................................................................................................................................................................ 63 Possible for more than 1 eligible spouse to survive an intestate................................................................................................................................................................................. 63 Separated spouses....................................................................................................................................................................................................................................................... 63 14.04 Claims Against an Estate by Unrelated Parties (p. 114 L)............................................................................................................................................................................................... 63 14.05 Claims for Unjust Enrichment (p. 114 L)......................................................................................................................................................................................................................... 63 5 CH. 1 – WILLS AND INTESTATE SUCCESSION Succession laws → transfer of real and personal property from one person to a successor Includes: wills, intestate succession, gifts, inter vivos trusts (created during donor’s lifetime), and other estate planning tools Main legislation: Wills, Estates and Succession Act (WESA). 1.03 THE ESTATE (P. 1 R) When a person dies, their assets fall into 1 of 2 general categories: (1) Assets that were the deceased’s property and form part of their estate; and Only property that forms part of estate will be distributed under terms of the will or under scheme of intestate succession Property that is subject to a will is said to “pass” by the will o Generally includes: assets client owns, controls, or has beneficial interest in, e.g. ▪ Tangible personal property (e.g. jewelry) ▪ Intangible personal property (e.g. stocks, bonds, bank accounts, investment certificates); and ▪ Real estate (e.g. fee simple or leasehold interests) (2) Assets that don’t form part of their estate → distributed by operation of law upon death (p. 2 L) Property that will-maker may or may not own, but is distributed by operation of law upon death (see Ch. 8) NOTE: Other laws may affect distribution of assets for Indigenous person (p. 2 R). 1.04 DISPOSITION OF PROPERTY BY WILL (P. 2 R) For a will to be effective, the will-maker must have: (a) intended the will to have dispositive effect; (b) intended that the will not take effect until after death and be entirely dependent on death for its operation; (c) intended for the will to be revocable (and it in fact must be revocable); and (d) executed the will in accordance with the formal requirements of WESA (see Ch. 2) = Signed by WM in presence of 2+ witnesses who also sign, WM is 16+, will is in writing Dying with a will = dying “testate” (p. 2 R) Does not necessarily mean will-maker’s property will be distributed exactly as set out in the will (e.g. if court finds all or part of the will invalid and rules of intestacy dictate distribution of that property) If will fails to dispose of all property, rules of intestacy will apply to the property not disposed of. Court may agree to vary terms of an otherwise completely valid will (see Ch. 13) – adequate provision WESA, s. 10 provides further that a person must survive by five days in order to receive a gift under an instrument. 1.05 DISPOSITION OF PROPERTY ON INTESTACY (P. 2 BR) Dying without a will = dying “intestate” (p. 2 R) Dying with will that doesn’t fully dispose of estate = dying “partially intestate” Outcome: Statutory rules re intestacy govern Possible consequences of dying intestate (p. 3 L) (a) beneficiaries receiving assistance under the Employment and Assistance for Persons with Disabilities Act may become disentitled to their benefits when gifts make their assets past certain thresholds. Can be avoided with estate planning – want to set up a discretionary trust in favour of the person w/disability (b) if an intestate owns real property in jurisdiction other than where they are domiciles at death, it will be distributed according to the rules of the jurisdiction where it is located. Personal property will be distributed according to the rules of jurisdiction where the person as domiciled a. “domicilied” = a person treats as their permanent home, or lives in and has a substantial connection with. b. is a question of mixed law and fact- an individual who has mental and legal capacity can acquire a domicile of choice by residing with the intention of residing there permanently. Residence alone is not sufficient to create a domicile of choice; it must include the intention to reside permanently or indefinitely in the new jurisdiction. If the domicile of choice is abandoned and no new domicile of choice arises, the domicile origin revives. (c) if an intestate has children, a surviving spouse is not entitled to the intestate’s entire estate, which may be problematic, if that spouse needs significant support from the estate (d) if the intestate has a successor who is a minor or is mentally incompetent, the Public Guardian and Trustee must be notified and may assume responsibility of the intestate successor's distribution, resulting in a loss of control of the distribution and additional costs (e) Assets that can roll over to a spouse on a tax-deferred basis generally cannot roll over to children on a tax-deterred basis. Which, in the case of intestacy, may result in a taxable gain and liability for estate tax. (f) Can’t select a guardian for minor children (unless the intestate has done so under the Family Law Act). (See 84.02(9) for more on naming guardians.) (g) Can’t set trust conditions for minor children. (See s. 4.02(7)(d) for more on trust conditions tor minor children. 6 Intestacy distribution scheme in WESA (“parentelic” distribution) (p. 3 BL) (see if each scenario applies in order) (1) No Spouse → D’s relatives would inherit on intestacy in the following order (s. 23): a. Children b. Grandchildren c. Further lineal descendants (great-grandchildren etc.) d. Parents e. Parent’s children (siblings, full or half doesn’t matter.) f. Nieces and nephews g. Great-nieces and nephews h. Grandparents i. Grandparent’s children (aunts and uncles) j. Cousins k. Great-grandparents; and l. Great-grandparents’ children (2) Spouse but no children → 100% to spouse (p. 3 R) (3) Spouse and shared children w that spouse → first $300K to spouse, remainder split 50% between spouse and children in equal shares a. Furniture of spousal home and right to acquire home from estate for 180 days after representation grant → to spouse (4) Spouse and children from a previous marriage a. Spouse → first $150K + furniture from spousal home and right to acquire spousal home from estate for 180 days after representation grant b. Residue → split 50/50 between spouse and children in equal shares c. The law treats children from a different relationship differently to recognize the impact on blended families. The idea is to reserve more of the asset value to be split between the children (5) Children but no spouse? → divided equally among children (6) Parents but no children → equally to surviving parent(s) (7) Siblings but no parents or children → equally to siblings (8) Grandparents or aunts, uncles, cousins, but no children, parents or siblings → equally to surviving grandparent(s); if any grandparent is dead, that share equally to aunts/uncles/cousins (9) Great-grandparents or children of great-grandparents but no children, parents, grandparents or aunts/uncles/cousins → equally to surviving great-grandparent(s); if any great-grandparent is not surviving, that part equally to descendants of deceased great-grandparent (10) 2+ spouses? → as agreed between the spouses; if no agreement, as court determines to be just (p. 4 L) (11) No one above → goes to the Crown SPOUSE (P. 4 L) “Spouse” → includes persons who have lived together in marriage-like relationship for at least 2 years (regardless of sexual orientation or gender identity) (p. 4 L) Common law spouses have same entitlements as married spouses A person ceases to be a spouse IF: o (a) if married → interest in family property becomes an issue under property division of FLA; o (b) if marriage-like relationship → one or both persons terminate the relationship Reconciliation: Spouses are not considered to have been separated if, within 1 year after separation: (a) they start to live together again for primary purpose of reconciliation; and (b) they continue to live together for 1 or more periods, totalling at least 90 days. Spousal Home when spouse dies intestate and spousal home is not subject of a gift or disposed of under will → spouse has right to acquire spousal home from estate for period of 180 days after representation grant is issued (unless period extended by court) (p. 4 L) o Surviving spouse may acquire the spousal home to satisfy, in whole or in part, their interest in the estate DESCENDANT (P. 4 L B) “Descendant” = all lineal descendants of a person through all generations (WESA distribution upon intestacy is PER STIPES) → Divided into equal shares between the surviving descendants + deceased descendants with surviving descendants (in closest generation to D) (p. 4 BL) o Shares of the deceased descendant to be divided equally and distributed to the deceased descendant’s surviving descendants (p. 4 TR) Children born inside and outside marriage are treated equally for purposes of rights to share Descendants or relatives born AFTER D dies (p. 4 R) o Conceived but not born → inherit as if they were alive at time of D’s death provided they live for 5 days o Frozen eggs and sperm: Descendant conceived after D’s death using D’s genetic material in assisted reproduction → child inherits as if they were born before D’s death if: ▪ D’s spouse must give notice within 180 days of grant of probate or administration being issued that they intend to conceive a child via assisted reproduction; ▪ Child must be born within 2 years of D’s death and survive for 5 days; and 7 ▪ D must be child’s parent under Part 3 of FLA (p. 4 R) If no intestate successors → escheats to prov Crown Person can apply to Lieutenant Governor in Council under Escheat Act for return of all or portion of such real/personal property on basis of a legal or moral claim, or as reward for discovering right of the prov Crown to the property (p. 4 BR). INDIAN ACT (P. 4 BR) If D is a registered Indian → governed by separate intestate succession regime under Indian Act Minister can declare will void in whole or in part in specified circumstances (p. 98 L) HOW: separate succession regime under the Indian Act (s. 48 Indian Act) WHO: a person who is a registered “Indian” and dies intestate “survivor” means the deceased’s surviving spouse or common law partner “spouse” means cohabitation in conjugal relationship for a period of at least 1 year (NOTE DIFFERENCE from BC common law) For the purpose of determining succession, anyone who is legally adopted or adopted according to Indigenous custom is treated as if that person was related by blood to the adopted relative. o Before child can inherit, must be a finding of adoption by custom. Note: A person not entitled to reside on a reserve cannot inherit a right to possess or occupy land on a reserve. Died leaving Distribution on Intestacy under Indian Act Estate that does not exceed Whole estate goes to surviving spouse (regardless of whether there are descendants!) $75,000 in value *Although govt has discretion to direct that all or part of estate that would otherwise go to spouse should go to children if those children will not be adequately provided for. Estate >$75k in value Whole estate goes to surviving spouse. + spouse only Estate >$75k in value Surviving spouse gets $75,000 + 50% of the remainder. + spouse

Wills CAN Summer 2024 PDF

Document Details

Tags

Related

Summary

Full Transcript

Upgrade to continue