Kelowna General Practice Blog

Generally speaking, an executor winds up the estate of the deceased and administers gifts and inheritances to beneficiaries. However, this responsibility is easier said than done.

The executor, also called the estate trustee, may have had a discussion with the testator about the process of winding up an estate. However, if further clarification is needed, it’s best advised to consult with an experienced estates lawyer. He or she will be able to help the estate trustee put into motion all the steps that need to be completed in order to administer the will. If the estate trustee should so wish, a legal professional may also take over the administration of the will on the trustee’s behalf.

One of the most nerve-wracking and emotional experiences in life is going through a divorce. Family law in British Columbia makes the rules under which divorce falls. These rules also cover the family home. Some couples may wonder what happens to the home -- especially when there is a mortgage involved. The first question that needs to be answered is whether the home will be sold or whether one person intends to stay; but the decision hinges on whether the individual choosing to stay would be able to qualify for a mortgage on his or her own.

Both parties should know that when their names are on title and on the mortgage, they are both financially responsible for the home, even when they're not living there. Leaving one's name on a mortgage can have an impact on qualifying for another mortgage. So, for the individual who leaves the home, it is important to remove him or herself from the mortgage. 

Thousands of benefits could be at risk with the revamping of the term, shared-custody parent. The federal government recently introduction draft legislation that would change family law regarding what shared custody means. British Columbia parents could be affected by the legislation since a shared-custody parent would have to live with his or her children at least 40% of the time every month. 

The legislation is aimed at giving clarification to the Canada Child Benefit (CCB) which gives low and middle-income families monthly, tax-free funds to help defray the costs of raising their kids. It is hoped this legislation might mitigate the disputes that arise regarding the CCB. The average family in receipt of these funds receives about $7,000. The money is paid to the parent who is the primary caregiver of the children. Rules determining if each parent can collect payments hinges on whether there is shared custody.

There are various ways of transferring an estate in Canada. British Columbia residents who are thinking about their wills and estates may find it helpful to know what those means are. Wills are the most common and most popular way of transferring an estate, but there are other ways that can work in conjunction with wills. Having a will in place first, though, is a must since, without one, an estate can get complicated, and when a loved one dies intestate -- or without a will, it can cause further heartache for family members. 

In addition to wills, testamentary trusts may be useful for some testators who become grantors when they have established trusts. This type of trust takes effect when a grantor dies. Assets pass to beneficiaries without beneficiaries having control over them, since they are managed by a trustee who can make investments on behalf of beneficiaries. Capital and assets are doled out to beneficiaries as per the wishes of the grantor. This may be useful for beneficiaries who aren't particularly financially adept.