Baycrest

Baycrest Foundation | 3560 Bathurst Street | Toronto | Ontario | M6A 2E1 phone: 416-785-2500 | website: baycrest.org Charitable Registration Number 11921 5242 RR0001 It's been said that nothing is certain except for death and taxes. If that's true, perhaps the greatest certainty in life is taxes upon death. Although we have no traditional estate tax in Ontario, one way the government finds its way into your pocket is through the concept of 'probate fees'. Before getting into the calculation of these fees, it is important to understand what probate is and why it is often a necessary step in the administration of an estate. 'Probate' is the official approval of your will by the local court. The process – which is kickstarted by the estate trustee's formal application – also confirms the appointment of your estate trustee. This is especially important in the event that an individual passes away without a will. Calculation of the fee is quite straightforward. For estates valued over $50,000, the fee is calculated as $15 for every $1,000 (or part thereof) of the value of the estate over that $50,000 figure. The probate process can take time, and can be expensive. With that in mind, why bother? Practically speaking, certain holders of an individual's assets (such as banks, investment agencies, and even the land registry) will not agree to deal with the estate trustee unless and until probate is obtained. Unfortunately, in this day and age, these holders have an ever-present fear of fraud. The way they alleviate concerns about fraud is by insisting on a copy of the 'probated will'. In most cases, probate is an absolute necessity in order to access a deceased's assets. But, there are ways to minimize the accompanying fees. The probate tax is only payable on the value of assets that "pass through the estate". In turn, if an individual is able to minimize the value of assets that pass through the estate, they correspondingly minimize the fees charged. Certain assets are deemed to flow directly to heirs upon an individual's death. In other words, these assets are not governed by a will, do not pass through the estate, and therefore do not require probate. Assets like RRSPs and life insurance policies allow the individual to appoint a designated beneficiary. That beneficiary collects 'automatically' upon the individual's death. Jointly-held assets pass directly to the other joint-holder on death, and not through the estate. The right preparation can lead to significant savings. An estate lawyer can help with this process. Without some careful planning, there's no doubt that taxes upon death is indeed a great certainty. However, with a bit of foresight and some thinking ahead, you may make this just a little less certain. Matthew Urback is a Partner at Shibley Righton LLP Barristers & Solicitors Matthew Urback News Flash On April 7, 2020, the Ministry of the Attorney General announced an emergency order under the Emergency Management and Civil Protection Act, allowing for the witnessing of Wills and Powers of Attorney through the use of real time audio-video conferencing technology. Visit https://www.attorneygeneral.jus.gov.on.ca/ for more details. Bequest Information Bequests are an easy way to support Baycrest and leaving a gift is as straightforward as updating your Will or creating an estate plan. Of course, many of us hope that our legacy will be one that touches our family and friends, but it can also reach the community and the next generation. To reach a Legacy Giving team member, please call 416-785-2500 Becki Willoughby ext. 3895, Joanne Gittens ext. 2023, Melissa Sobel ext. 6288 Professional Advisory Committee Co-Chairs: Elisabeth Colson | Joshua Wise Committee: Brian Belmont | Arieh Bloom Ashley Doidge | Talia Feder | Irving Feldman Zak Goldman | Leon Kieselstein | Marc Levstein Israel Mida | Allan Rakowsky | Jack Rotsztain Alexandra (Ali) Spinner | Elisa Swern Errol Tenenbaum | Marissa Verskin | Kim Whaley The Certainty of Death and Taxes - Understanding Probate Fees (l-r) Melissa Sobel, Becki Willoughby and Joanne Gittens

• Cover