|
|
February 7, 2003
Where there's a will....
There's a lot to consider to get an estate in order.
KYLE BERGER REPORTER
Just because you don't think you have a large estate, doesn't mean
you don't need a will. A proper will can still save your loved ones
from unwanted financial burdens when you pass away.
That was the strong message being delivered to more than 150 people
gathered at the Jewish Community Centre of Greater Vancouver Jan.
20. The meeting, titled How to Put Your Affairs in Order, was organized
by Marjorie Groberman and included wills and estate planning lawyer
Herbert Loomer as the featured speaker.
According to Loomer, most people think that they don't have a large
enough estate to spend the money on a will or that they aren't concerned
about what happens once they are gone.
"Some people say that they don't have an estate," said
Loomer. "Well, all of us have something. It always suprises
me that people will spend years and years accumulating their belongings
and yet, for an insubstantial sum of money, they will not deal with
the problems that will have to be addressed in order to pass that
estate on to their heirs."
The most common misunderstanding, Loomer explained, is the tax consequences
that come with passing your estate to various friends or relatives.
For example, liquid gifts (those gifts that do not change their
value over time, such as cash) are not taxed while items that could
build equity (such as stocks that might increase in value) will
be taxed and it is usually up to the estate to cover those fees.
"If you understand how the tax is calculated then you can estimate
what the taxes are going to be on your demise and you can determine
whether or not you have sufficient liquidity in order to pay those
taxes," he explained. "That's a very important thing to
do."
Loomer was careful not to give specific advice on planning a will,
stressing the uniqueness of each case and the importance of getting
advice from a lawyer. He did, however, list a number of common points
that should always be considered when planning a will. Here is a
list of what Loomer calls "alerts."
• If you own shares in a private company there are several
options that should be investigated for how the taxes can be paid.
• If either spouse is a citizen of a different country, there
are likely to be different tax laws that would have to be considered.
For example, if you are an American citizen living in Canada, you
have to do American taxes each year and your will would have to
follow American tax law.
• If either spouse has entered into a second marriage, it is
common for a husband or wife to have children from their previous
marriage. You must consider if you want your estate to go to just
a current spouse and whether you want to bequeath items to heirs
from both marriages.
• If you have any beneficiaries with special needs, you want
to ensure that your estate can look after that person without adversely
effecting what he or she may be receiving from the government.
• Marriages that took place in a different jurisdiction will
have different rules for distributing assets. In a common-law jurisdiction
such as Vancouver, spouses can each own property separately. However,
in a community property jurisdiction like Quebec, all assets become
joint ownership at the time of marriage and an individual spouse
may not have the right to dispose of any assets.
• If you have a prenuptual agreement, there could be consequences
to your will.
• If you own real estate in any jurisdiction outside of British
Columbia there may be different estate laws that govern how to deal
with this property in a will.
• Standard will packages that you hear about on the radio are
probably items to stay away from as everyone's case is unique and
a standard form would not address specific characteristics of each
estate.
According to Loomer, the Law Society of British Columbia has a lawyer
referral service where, for $10, you can have a 30-minute meeting
with a lawyer to determine if he or she is the right one for you.
"Very often in the initial interview you can get the problem
solved for the $10 fee," he said.
The phone number for the referral service is 604-687-3221.
Another service, Dial-A-Law, provides automated information about
a wide variety of legal subjects. By calling 604-687-4680, you will
prompted into finding the answers you are looking for.
^TOP
|
|
