Comments on: Why You Need a Will and The Basics of Estate Planning http://www.milliondollarjourney.com/why-you-need-a-will-and-the-basics-of-estate-planning.htm Building Wealth through Saving and Investing Fri, 19 Mar 2010 15:56:00 -0400 http://wordpress.org/?v=abc hourly 1 By: Valencia http://www.milliondollarjourney.com/why-you-need-a-will-and-the-basics-of-estate-planning.htm/comment-page-1#comment-49605 Valencia Tue, 26 Aug 2008 17:10:50 +0000 http://www.milliondollarjourney.com/?p=608#comment-49605 You provided here rather useful information. As a rule most of us prefer not to think about our passing away not to bring disaster upon ourselves. That is why we try to postpone estate planning and making a will in every possible way. Though if we won't it may lead to unfortunate consequences. It is very important to plan our estate in proper way and in proper time because an estate plan gives us much greater control over who will inherit our assets after our death. There are many cases when our relatives, no matter how remote, may have priority in inheritance ahead of the state. And they may not be our choice of heirs. We should think of it carefully. You provided here rather useful information. As a rule most of us prefer not to think about our passing away not to bring disaster upon ourselves. That is why we try to postpone estate planning and making a will in every possible way. Though if we won’t it may lead to unfortunate consequences.
It is very important to plan our estate in proper way and in proper time because an estate plan gives us much greater control over who will inherit our assets after our death. There are many cases when our relatives, no matter how remote, may have priority in inheritance ahead of the state. And they may not be our choice of heirs. We should think of it carefully.

]]> By: Cannon_fodder http://www.milliondollarjourney.com/why-you-need-a-will-and-the-basics-of-estate-planning.htm/comment-page-1#comment-49033 Cannon_fodder Thu, 21 Aug 2008 12:24:59 +0000 http://www.milliondollarjourney.com/?p=608#comment-49033 FP, My lawyer recommended (or perhaps I read) two criteria for the executor (in addition to the obvious). One was that they should be relatively local because the process can take quite some time (several days to even weeks depending on the estate). The second is that the executor ideally would be younger so that you minimizes the chance that they predecease you or perhaps become physically or mentally incapacitated. I wish there was a way to force people to deal with this issue as soon as their situation dictates. My sister and her husband (early 40's) have two children, a house and a business - they are only now getting around to sorting this out. I really laid into her when I found out. I consider this as being an irresponsible parent if you don't take steps to help ensure the children are taken care of in case of a tragedy. FP,

My lawyer recommended (or perhaps I read) two criteria for the executor (in addition to the obvious). One was that they should be relatively local because the process can take quite some time (several days to even weeks depending on the estate).

The second is that the executor ideally would be younger so that you minimizes the chance that they predecease you or perhaps become physically or mentally incapacitated.

I wish there was a way to force people to deal with this issue as soon as their situation dictates. My sister and her husband (early 40’s) have two children, a house and a business – they are only now getting around to sorting this out. I really laid into her when I found out.

I consider this as being an irresponsible parent if you don’t take steps to help ensure the children are taken care of in case of a tragedy.

]]> By: Charissa http://www.milliondollarjourney.com/why-you-need-a-will-and-the-basics-of-estate-planning.htm/comment-page-1#comment-48679 Charissa Mon, 18 Aug 2008 16:56:56 +0000 http://www.milliondollarjourney.com/?p=608#comment-48679 What about a Living Revocable Trust? I'm surprised this wasn't mentioned at all. A living trust can be a blueprint of your wishes, bypass probate for real estate, therefor saving your beneficiaries lawyer fees. A will also does not cover you if you become incapacitated. They are more expensive to set up in the beginning, though, generally. Just something to think about or look into to see if its right for you. What about a Living Revocable Trust? I’m surprised this wasn’t mentioned at all. A living trust can be a blueprint of your wishes, bypass probate for real estate, therefor saving your beneficiaries lawyer fees. A will also does not cover you if you become incapacitated. They are more expensive to set up in the beginning, though, generally. Just something to think about or look into to see if its right for you.

]]> By: David V http://www.milliondollarjourney.com/why-you-need-a-will-and-the-basics-of-estate-planning.htm/comment-page-1#comment-48048 David V Wed, 13 Aug 2008 14:47:22 +0000 http://www.milliondollarjourney.com/?p=608#comment-48048 I am not an estate lawyer, but I remember in the Bar Admission course learning that MGL is correct in Ontario and the 90 day rule does apply, but my instructor suggested that unless someone makes a fuss, it will usually continue. Imagine if a parent gave guardianship to a third party rather than the other parent. I think that's the reason that courts don't automatically grant long-term guardianship. I am not an estate lawyer, but I remember in the Bar Admission course learning that MGL is correct in Ontario and the 90 day rule does apply, but my instructor suggested that unless someone makes a fuss, it will usually continue.

Imagine if a parent gave guardianship to a third party rather than the other parent. I think that’s the reason that courts don’t automatically grant long-term guardianship.

]]> By: Four Pillars http://www.milliondollarjourney.com/why-you-need-a-will-and-the-basics-of-estate-planning.htm/comment-page-1#comment-48046 Four Pillars Wed, 13 Aug 2008 13:58:20 +0000 http://www.milliondollarjourney.com/?p=608#comment-48046 FT - it's a tough call - you want to get someone you trust and has the ability to do the job (location might be part of this). It would be interesting to hear from someone who has actually performed the executor service - maybe location isn't all that critical? I'm not sure what people do if they get moved around for work - it's not realistic to keep naming a new executor every few years - especially if they don't know anyone in the new location. FT – it’s a tough call – you want to get someone you trust and has the ability to do the job (location might be part of this). It would be interesting to hear from someone who has actually performed the executor service – maybe location isn’t all that critical?

I’m not sure what people do if they get moved around for work – it’s not realistic to keep naming a new executor every few years – especially if they don’t know anyone in the new location.

]]> By: FrugalTrader http://www.milliondollarjourney.com/why-you-need-a-will-and-the-basics-of-estate-planning.htm/comment-page-1#comment-48043 FrugalTrader Wed, 13 Aug 2008 13:41:18 +0000 http://www.milliondollarjourney.com/?p=608#comment-48043 Interesting point FP, I was considering using a relative from Ontario as my executor. Now I have to re-think my plan! Interesting point FP, I was considering using a relative from Ontario as my executor. Now I have to re-think my plan!

]]> By: Four Pillars http://www.milliondollarjourney.com/why-you-need-a-will-and-the-basics-of-estate-planning.htm/comment-page-1#comment-48041 Four Pillars Wed, 13 Aug 2008 13:26:08 +0000 http://www.milliondollarjourney.com/?p=608#comment-48041 Our #1 choice for guardians just moved to Singapore - our lawyer said that was fine. He did say however that the executor and poa should be in Ontario - I don't remember if this was an absolute requirement or just a common sense thing. The poa needs to be available to make quick medical decisions so the closer they are to you, the better. The executor also has to do a lot of work so they can do a better job if they don't have to get on a plane everytime they need to see someone. Our #1 choice for guardians just moved to Singapore – our lawyer said that was fine.

He did say however that the executor and poa should be in Ontario – I don’t remember if this was an absolute requirement or just a common sense thing.
The poa needs to be available to make quick medical decisions so the closer they are to you, the better. The executor also has to do a lot of work so they can do a better job if they don’t have to get on a plane everytime they need to see someone.

]]> By: FrugalTrader http://www.milliondollarjourney.com/why-you-need-a-will-and-the-basics-of-estate-planning.htm/comment-page-1#comment-48032 FrugalTrader Wed, 13 Aug 2008 11:42:46 +0000 http://www.milliondollarjourney.com/?p=608#comment-48032 MGL, another question, does it matter if the appointed guardian is in the same province or not? MGL, another question, does it matter if the appointed guardian is in the same province or not?

]]> By: MoneyGrubbingLawyer http://www.milliondollarjourney.com/why-you-need-a-will-and-the-basics-of-estate-planning.htm/comment-page-1#comment-48030 MoneyGrubbingLawyer Wed, 13 Aug 2008 11:36:10 +0000 http://www.milliondollarjourney.com/?p=608#comment-48030 FT, it's definitely the case in NL and I'm fairly certain it is also the case in Ontario. I suspect other provinces would have similar laws in place. I would stress again that it is rare for a court to interfere, but the guardian appointed does need to be approved by the court. If you suspect that your family (or an ex, for example) might cause trouble with custody issues, it is important to try to work things out while you can. FT, it’s definitely the case in NL and I’m fairly certain it is also the case in Ontario. I suspect other provinces would have similar laws in place.

I would stress again that it is rare for a court to interfere, but the guardian appointed does need to be approved by the court. If you suspect that your family (or an ex, for example) might cause trouble with custody issues, it is important to try to work things out while you can.

]]> By: Canadian Capitalist http://www.milliondollarjourney.com/why-you-need-a-will-and-the-basics-of-estate-planning.htm/comment-page-1#comment-48029 Canadian Capitalist Wed, 13 Aug 2008 11:34:13 +0000 http://www.milliondollarjourney.com/?p=608#comment-48029 Great post. Yep, get those wills done ASAP. Great post. Yep, get those wills done ASAP.

]]> By: FrugalTrader http://www.milliondollarjourney.com/why-you-need-a-will-and-the-basics-of-estate-planning.htm/comment-page-1#comment-48027 FrugalTrader Wed, 13 Aug 2008 11:22:06 +0000 http://www.milliondollarjourney.com/?p=608#comment-48027 MGL, I didn't know about the 90 day rule. Is that a Newfoundland rule or does it apply right across the country? MGL, I didn’t know about the 90 day rule. Is that a Newfoundland rule or does it apply right across the country?

]]> By: MoneyGrubbingLawyer http://www.milliondollarjourney.com/why-you-need-a-will-and-the-basics-of-estate-planning.htm/comment-page-1#comment-48023 MoneyGrubbingLawyer Wed, 13 Aug 2008 11:10:18 +0000 http://www.milliondollarjourney.com/?p=608#comment-48023 Great post, FT. One minor (and picky) correction, though- regardless of what your will says, the courts will still make the determination of who gets custody of your child. An appointment of a guardian in a will is only good for 90 days, after which time an application must be made to court for permanent custody or guardianship. While the court will consider your choice, the best interest of the child takes precedence and other interested parties (grandparents, other family members, etc.) are entitled to be heard. It's rare for the parents' wishes to be set aside, but not unheard of, and this is why it's important to select an excellent guardian and discuss your wishes with all involved ahead of time. Aside from this, all your other points are exactly what I would suggest, especially the importance of hold property as joint tenants with your spouse. If you don't have a spouse, you can also hold property this way with a child as an estate planning move. Just keep in mind that you can't bequeath your share of a joint tenancy by will, so only hold property jointly if you're intent on having the other party receive your share. Great post, FT.

One minor (and picky) correction, though- regardless of what your will says, the courts will still make the determination of who gets custody of your child. An appointment of a guardian in a will is only good for 90 days, after which time an application must be made to court for permanent custody or guardianship. While the court will consider your choice, the best interest of the child takes precedence and other interested parties (grandparents, other family members, etc.) are entitled to be heard. It’s rare for the parents’ wishes to be set aside, but not unheard of, and this is why it’s important to select an excellent guardian and discuss your wishes with all involved ahead of time.

Aside from this, all your other points are exactly what I would suggest, especially the importance of hold property as joint tenants with your spouse. If you don’t have a spouse, you can also hold property this way with a child as an estate planning move. Just keep in mind that you can’t bequeath your share of a joint tenancy by will, so only hold property jointly if you’re intent on having the other party receive your share.

]]>