Recent changes to provincial legislation have a significant impact on the role of an executor and the handling of an estate. In particular, the Minister of Finance can audit an estate for up to four years after the probate fee is paid. If it is determined that an executor has under-valued the estate, that person is responsible for paying the additional probate fee that would apply (to the higher value). As a result, an executor will now have to wait for a full four years before fully distributing the estate. In addition, executors will doubtless feel the need to spend more time ensuring that all assets are documented and properly valued. They have to be very careful when reporting the value of assets because they are personally at risk if the information is wrongly reported.
In light of these changes, you (and your executor) may want to review your will and the plans you are making for your estate. On a very practical level, if you have been a “pack rat,” now is the time to clean out the basement and garage. Give away anything you do not use or cherish (not including your spouse, of course). If you only have one will, all the items you own when you die will have to be inventoried and valued and estate tax (income tax) will be payable.
Please note that this summary is provided to alert you to an important change in legislation of relevance for retirees, does not constitute legal advice, and your humble scribe accepts no responsibility for any actions you may take in relation to this posting. For further information, have a look at several articles in recent issues of Vista magazine (a publication of the Kingston Seniors Association) or go to this website http://www.osullivanlaw.com/blog/2015/01/post-21.shtml.
Please note that this summary is provided to alert you to an important change in legislation of relevance for retirees, does not constitute legal advice, and your humble scribe accepts no responsibility for any actions you may take in relation to this posting. For further information, have a look at several articles in recent issues of Vista magazine (a publication of the Kingston Seniors Association) or go to this website http://www.osullivanlaw.com/blog/2015/01/post-21.shtml.