A Quick Quiz About Estate Stuff Worth Knowing Part 2

True or False ..... answers at the bottom

1.   If you die intestate, and without a spouse or children, the government gets your money

2.   Testamentary trusts are taxed at the same graduated rates as individuals

3.   An executor may incur liability for distributing an estate too quickly

4.   An executor may incur liability for distributing an estate too slowly

5.   An executor is responsible for filing the deceased's terminal T1 return and any still-unfiled returns from prior years

6.   An attorney under a Power of Attorney for Personal Care has final say with respect to the deceased's funeral arrangement

7.   Ontario's Estate Administration Tax (Probate fee) is calculated based on the net value of the deceased's estate governed by the Will

8.   If you become incapable of managing your financial affairs, the Public Guardian and Trustee automatically takes over

9.  Alter ego and joint partner trust may be used as a substitute for a Will and/or a Power of Attorney for Property

10. As a general rule, Canadians are deemed to have disposed of their capital property, immediately after death, for proceeds equal to fair market value

Answers 

1F, 2T, 3T, 4T, 5T, 6F, 7F, 8F, 9T, 10F

How Divorce Impacts the Will

Divorcing spouses must revisit their wills, beneficiaries and Powers of Attorney as soon as they've decided to separate .

"If the will (and other assets with designated beneficiaries) aren't dealt with early in the process, there's a significant risk to both clients," says Joanne Dereta, managing director and principal of Stonegate Private Counsel LP in Toronto.

Most married couples name each other as beneficiaries, and if one spouse dies during divorce proceedings without making the change, his or her ex will receive the assets. That's usually undesirable. Clients should also review guardianship for children, in case one parent is now unfit.

Even worse is when separating spouses are named as executors of each other's estates. If one spouse dies, "The surviving spouse in now in a conflict of interest, because he's essentially negotiating with himself," says Dereta, and would have to step down. The courts would then appoint an executor, delaying the process.

In a collaborative divorce process, a provision prevents any changes to wills and beneficiary designations until both parties meet. Dereta advises addressing those issues early in the process - preferably the next meeting.

Real Estate titles must also change. "You want to make sure you've not obligated to debts for properties you no longer own" says BMO Nesbitt Burns investment advisor Angela Galer-Grist.