Estate Planning Essentials: How to Begin the Process in Edmonton

Estate Planning Essentials: How to Begin the Process in Edmonton

Whatever your age or health status, it is always a good time to consider establishing an estate plan. While it may be uncomfortable, making clear decisions on what happens to your assets after the end of your life can offer your loved ones peace of mind. From writing your will to drafting a personal directive, the process of estate planning in Edmonton may include a variety of different elements, depending on the circumstances of your particular estate.

At Verhaeghe Law, our Edmonton estate administration lawyers understand that no two estate plans are the same. We approach each client with tailored care, listening to your unique needs and striving to ensure you have the support to proceed with informed decision-making.

To schedule your initial consultation, contact us today and learn how our Edmonton estate administration lawyers might be of service to you.

Understanding the Status of Your Estate

As with any plan, the first step in an estate planning process might be to understand the status of your estate. What are the assets and liabilities you currently possess? It may be beneficial to organize a list of your properties, investments, debts, as well as any smaller items you may wish to give to specific individuals or organizations after your death.

Determining Your Estate Planning Goals

Most people approach estate planning with the central goal of providing for their loved ones. After a person dies, their property is typically distributed among beneficiaries according to what they have outlined in their will. If there is no will, the property may be distributed in accordance with intestacy guidelines in the Alberta Wills and Successions Act.

Depending on your particular circumstances, you may have additional considerations in mind as you plan your estate. It can be important to determine your estate planning goals as a starting point. Consider the following questions:

  • Do you have dependents who may need financial support should you become incapacitated?
  • Are you concerned about a tax-efficient transfer of assets to your beneficiaries?
  • Do you have concerns about aged care for yourself or a loved one?
  • Do you own a business that requires special consideration?
  • Are you living with a health condition that might one day require a loved one to make decisions on your behalf, while you are still alive?
  • Are there other factors, or a combination of the above, that might require particular planning?

Alongside a last will and testament, a number of other legal documents may help provide your loved ones with the clarity and support they need to execute your estate plans should you become incapacitated or pass away.

Seeking the Advice and Support of a Professional

Because no two estate planning processes are identical, there may be strategies or solutions available of which you may not yet be aware. Moreover, because the process of estate planning may involve a set of legal documents, it may be in your best interests to collaborate with a professional who may be able to ensure they are drafted correctly, with rigorous attention to detail.

Our Edmonton estate administration lawyers have helped many clients navigate the process of estate planning, and would be happy to discuss your particular questions, concerns, and wishes.

Whether you own a business and have questions about how this will affect your estate plan, are interested in opening a trust for a loved one, or require support establishing a personal directive for a loved one to be able to make decisions on your behalf, our team at Verhaeghe Law is here to offer our insights. Contact us today to learn more.

Communicating Your Wishes to Your Family

In addition to drafting legal documents with the support of an Edmonton estate administration lawyer, it may be helpful to articulate your plans and wishes with your family. While they will have your last will and testament as guidance, speaking with them in advance can help reduce the stress of uncertainty in the time immediately after you become incapacitated or pass away.

Depending on your circumstances, you may wish to:

  • Tell your family where your will is located
  • Let your family know your wishes regarding the distribution of your properties, including any homes or businesses they may inherit
  • Articulate how you wish to distribute any of your sentimental assets, with consideration to how important these may be to particular family members
  • Check in with any persons to whom you intend to give enduring power of attorney and/or personal directives. Articulate, where possible, any wishes you may have regarding decisions they might make regarding your health and finances on your behalf
  • Consider other questions that may arise regarding your loved ones, and consult with our Edmonton estate administration lawyers to see what may benefit your case.

Making Arrangements for Your Business

If you own a business, there may be particular considerations required in arranging your estate plan. Upon consulting with your Edmonton estate administration lawyer, you may wish to implement several additional steps to clarifying your wishes for the future.

Depending on the context of your business, you may wish to establish a clear succession plan, in which your ownership will pass on to a business partner, a family member, or someone else. Life insurance may likewise be of particular interest to business owners, as the financial status of their business may be severely affected by an untimely loss.

Regularly Reviewing Your Estate Plan

As time passes, your life circumstances will likely change. The shape of your family, business, and estate may alter significantly. You may acquire or dispose of properties previously named in your will. Beneficiaries named in your will may pass away, or your wishes may change regarding how your property will be distributed.

For these reasons, it is important to regularly review your estate plan. Contact our Edmonton estate administration lawyers today to discuss how to strategize your review, and what amendments may be required.

Contact Our Edmonton Estate Administration Lawyers Today For a Consultation

Setting down clear plans for the future of your estate can be a tremendous gift to your family. By leaving a map of how you wish for your assets to be distributed, you may be able to provide your loved ones with financial protection and peace of mind.

Each estate has its own sets of unique possibilities and requirements. At Verhaeghe Law, our Edmonton estate administration lawyers understand that no two estate planning processes are the same. Contact us today to discuss the particulars of your case, and learn how we might make the process easier for you.

** Please note, this article is intended as a general overview on the subject of estate administration, and is not intended to be legal advice. If you are seeking legal advice, please consult with an Alberta estate administration lawyer.

What is "Good Faith" in Probate and Estate Law in Edmonton?

What is

The property that a person leaves behind when they die typically becomes the responsibility of a Personal Representative. Formerly known as an estate executor, the Personal Representative acts on behalf of the deceased to manage and distribute the estate according to the deceased’s wishes, as laid out in their last will and testament. 

The Personal Representative is expected to act “honestly and in good faith,” as outlined in the Estate Administration Act (EAA) of Alberta. This article explores the duties of a Personal Representative, as well as what “good faith” means within the context of probate and estate law in Edmonton.

For detailed information, as well as insights into your own circumstances in an estate administration matter, contact our Edmonton estate administration lawyers today to set up a consultation.

A Personal Representative’s Core Tasks

According to the EAA, the Personal Representative is responsible for completing the following core tasks:

  • Identifying the estate assets and liabilities
  • Administering and managing the estate
  • Satisfying the estate’s debts and obligations
  • Distributing and accounting for the administration of the estate

A Personal Representative is expected to distribute assets to the beneficiaries of the deceased, as outlined in the deceased’s will. What happens if you die without a will? In this case, the Personal Representative distributes the estate in accordance with the rules set out in the Wills and Succession Act. 

When there is a will, the Personal Representative is responsible for acting with utmost respect of the deceased’s wishes. There is a great deal of freedom in what a person can decide to do with their property after they die. There are some limits, but in general any challenges to a deceased person’s wishes must be reasonably justified.

This means the Personal Representative must act, as their title underlines, as a representative of the deceased, regardless of their personal preferences as to the estate distribution.

A Personal Representative’s Duties

The general duties of a Personal Representative, as set forth in the EAA, are to perform their role with a commitment to honesty and good faith, working in accordance with the wishes of the deceased as set out in their will (if there is a valid will). The Personal Representative must act reasonably and with “the care, diligence and skill” that can be expected under comparable circumstances. They must distribute the estate “as soon as practicable.”

The Personal Representative holds fiduciary responsibility before the estate’s beneficiaries, and is required by law to act in accordance with the wishes of the deceased. They cannot act independent of the will, making their own decisions as to how the estate is to be distributed. 

The provision of distributing the estate “as soon as is practicable” offers reasonable leeway for the timeline of estate administration, as circumstances can vary vastly. However, the Personal Representative remains obligated to act within reason, and may face scrutiny should they fail to perform their duties to a reasonable standard. 

Contact our Edmonton estate litigation lawyers for more information on how this may be relevant in your case.

What Is Good Faith in Probate and Estate Law?

Good faith is an organizing principle that means a person entering into an agreement or a relationship enters into it with the honest intention of fulfilling the promises and obligations of that agreement or relationship.

For a Personal Representative, good faith involves working with honest intentions in the execution of a deceased person’s will. It means being honest and transparent in the calculations of an estate’s assets, and acting on a reasonable timeline given the circumstances of the estate.

If a Personal Representative is found to be acting in bad faith, against the wishes of the deceased and the benefit of the beneficiaries, they may be removed from their duties. To learn more on how to remove an executor from a will in Alberta, contact our Edmonton estate administration lawyers today and set up your initial consultation.

Contact Our Edmonton Civil Litigation Lawyers Today For a Consultation

Being a Personal Representative in Alberta comes with a set of responsibilities, duties, and obligations. Depending on the circumstances of the estate and the wishes of the deceased, the Personal Representative’s role may be more or less complicated. One throughline in the Personal Representative’s responsibilities is their requirement to act in good faith. 

To learn more, including how you might navigate your own probate and estate matter, contact our Edmonton estate administration lawyers today to set up an initial consultation.

** Please note, this article is intended as a general overview on the subject of probate and estate law, and is not intended to be legal advice. If you are seeking legal advice, please consult with an Alberta estate administration lawyer.

What Is the Difference Between an Executor and a Trustee in Edmonton?

What Is the Difference Between an Executor and a Trustee in Edmonton?

Executors and trustees both play key roles in the administration of an estate after a person passes away. Both act in the interests of the estate’s beneficiaries, and may share certain tasks. In fact, one person may fulfill both roles. However, there are key differences that distinguish an executor from an estate trustee.

Estate administration can be a complicated process. If you have questions about your particular case, or would like to learn more about what course of action may be best for you, contact our Edmonton estate administration lawyers today to schedule your initial consultation.

What Is an Executor?

The executor of an estate (also known as a personal representative) is a person, usually appointed in the last will and testament of the deceased, who is responsible for administering the estate according to the deceased’s wishes. 

Often, an executor’s administration process begins with applying for a grant of probate. This is a legal document that gives the executor the legal right to distribute the estate. In some cases, if the estate is small and the distribution requirements are simple, a grant of probate may not be necessary.

An executor’s main responsibility is to settle the deceased’s estate. This involves locating all the properties of the deceased, and determining any taxes, debts, or other liabilities the deceased had. This will influence the net value of the estate. The executor is then responsible for distributing the estate according to the deceased’s wishes.

In addition to distributing the estate, an executor may be responsible for arranging the funeral, and notifying family members, public officials, employers, friends, and any other relevant parties about the death.

If there are trusts involved in the estate of the deceased, the executor communicates with the trustees in order to ensure they are performing their responsibilities.

What Is an Estate Trustee?

While an estate executor manages the overall assets and properties of the deceased, an estate trustee is responsible only for the matters they have been specifically designated to oversee. The trustee manages property on behalf of beneficiaries of a trust created by the deceased.

A person may create a trust for many different reasons. A parent, for instance, may choose to create a trust for their children, to keep property aside until they reach a certain age. The trustee owns that property for the time being, with the responsibility of acting in the best interests of the trust’s beneficiaries. When the children reach the designated age, the trustee passes the property to them, and the trust is closed.

Some trusts are structured to provide ongoing financial support, and may require a trustee’s long-term commitment. For example, if there is a family member who is unable to manage their own financial affairs, a trustee may distribute regular portions of the trust assets over the course of a long time.

Key Differences Between the Roles of an Executor and a Trustee in Edmonton

The key difference between the roles of an executor and a trustee in Edmonton is that each is responsible for a different scope of estate matters. While the executor or personal representative manages the entire estate, it is the trustee’s job to oversee only the property that falls under the purview of their trust.

Likewise, the timelines of both roles differ. An executor is typically finished with their work once they have distributed the estate to the beneficiaries and/or to trustees as designated in the will. The work of a trustee, meanwhile, is not complete until the trust ends.

Wondering what are the roles and responsibilities of an estate trustee? Looking to discuss how to navigate these roles in your own estate administration plans? Contact our Edmonton estate administration lawyers today to set up your consultation.

Contact Our Edmonton Estate Administration Lawyers Today for a Consultation

Estate planning and administration can be challenging, but with the assistance of a dedicated professional, you may find support and clarity in the process. At Verhaeghe Law, our Edmonton estate administration lawyers are here to discuss your particular circumstances, and see how we may be of greatest help to you and your family. Contact us today to schedule your initial consultation.

** Please note, this article is intended as a general overview on the subject of estate administration law, and is not intended to be legal advice. If you are seeking legal advice, please consult with an Alberta estate administration lawyer.

How Do You Transfer Land Title When the Owner Is Deceased?

How Do You Transfer Land Title When the Owner Is Deceased?

When a person dies, their property usually becomes the responsibility of their estate executor. It is this person’s duty to distribute or otherwise deal with the assets of the deceased in accordance with the last will and testament they have left behind. 

If the deceased person owned property, transferring land title may become part of an estate executor’s duties. To address your questions about land title or navigating estate executors’ duties in Alberta, book a consultation with our Edmonton estate administration lawyers today. We would be happy to discuss your case and see how we may be of service to you.

How Land Title is Held in Alberta

In Alberta, there are three major ways in which land title is held:

  1. Joint Tenancy, in which two or more individuals co-own the property. Most often, the co-owners are spouses.
  2. Tenancy in Common, in which two or more individuals own a certain share of interest in the property. The shares may or may not be equal.
  3. Sole Ownership, wherein one person holds sole title to the property.

In a joint tenancy, the surviving owners retain ownership of the property if the other owners pass away. If there have been two joint tenants, as is often the case, the surviving tenant automatically holds full ownership of the property, and no land title transfer is needed. Because of this, joint tenancy is often highlighted among tips on reducing your estate planning costs in Alberta.

In order to remove a deceased owner’s name from land title in a joint tenancy, you must submit a Statutory Declaration regarding Proof of Death to the Alberta Land Titles Office, alongside one of the following:

  • Vital statistics registry certificate
  • Medical examiner’s certificate
  • Funeral director’s certificate
  • Cremation certificate
  • If death occurred outside Alberta, a comparable document from relevant authority

Where the deceased held title to the property as a tenant in common, or in sole ownership, the executor of the estate must typically apply for probate in order to begin the process to change land title ownership. The process involves working with an Edmonton estate lawyer to file a copy of the will and other documents with the Court of King’s Bench. In order to ensure this process is done properly, contact our Edmonton estate administration lawyers and see how our team at Verhaeghe Law might be able to help.

The Process of Probate

Probate is a legal process by which a will is reviewed and approved by the court, and the estate executor receives the authority to distribute assets in accordance with the deceased person’s wishes. In reviewing a probate application, a judge will usually require an overview of the estate’s beneficiaries, as well as any other interested parties. The probate application usually involves an inventory of the estate’s debts and assets, as well as the executor’s plan for their management and distribution. 

A successful application for probate receives a Probate Order, which officially gives the executor the right to distribute the estate, including the transfer of any land title required.

Submitting to Alberta Land Titles Office

An estate executor can submit their Probate Order to the Alberta Land Titles Office, who will transfer the land title from the name of the deceased individual to the name of the estate executor. From there, the estate executor may transfer or sell the title. 

Often, the estate executor is also a beneficiary of the estate. This may be, for example, an adult child of the deceased. In such a circumstance, the executor may choose to retain ownership of the property. If other beneficiaries are entitled to the property, negotiations may need to take place, potentially involving a buy-out. Our Edmonton estate administration lawyers would be happy to discuss the nuances of your situation, and see how we may be of help.

Contact Our Edmonton Estate Administration Lawyers Today for a Consultation

If you are the executor of an estate in Alberta, you may be wondering how to transfer land title when the owner is deceased. At Verhaeghe Law, we prioritize efficient, compassionate service geared toward clarifying your questions and making the title transfer process as smooth as possible. Contact us today to schedule a consultation and learn how our Edmonton estate administration lawyers might make a difference for you.

** Please note, this article is intended as a general overview on the subject of estate administration law, and is not intended to be legal advice. If you are seeking legal advice, please consult with an Alberta estate administration lawyer.

Tips on How to Reduce Estate Planning Costs in Alberta

Tips on How to Reduce Estate Planning Costs in Alberta

Estate planning is the process of making arrangements for how your assets and obligations will be distributed after your death. It involves articulating your wishes in an important document known as the last will and testament. Having a will can help ensure you leave your loved ones with financial security as well as clear guidance as to your legacy.

Other estate planning considerations can include naming a personal directive and power of attorney, establishing a trust, and possibly more. The estate planning process comes with costs, which vary depending on a number of factors. There are steps you may be able to take in structuring your estate to reduce estate planning costs in Alberta, both for yourself and your loved ones.

Our Edmonton estate administration lawyers would be happy to discuss your questions and concerns, and see how we might help you structure a cost-effective estate plan.

The Costs of Estate Planning

In Alberta, numerous factors contribute to the costs of estate planning and administration. These can include:

  • Probate
  • Administrative fees
  • Executor compensation
  • Taxes
  • Legal fees
  • And more

Your executor - the person you designate to oversee your estate after your death - will typically need to put the will through probate. This is a process by which the will is reviewed and deemed valid, thereby giving the executor the power they need to distribute your estate. Probate fees are set on a scale commensurate with the value of the estate.

The executor typically receives compensation for their labour in administering the estate. Other administrative fees, such as preparing particular documents, may also add up.

Another major consideration for the planning of your estate in Alberta is the impact of taxes on your beneficiaries. If the sale of your estate assets accrues capital gains, for example, these will be taxed. Likewise, if you have had deferred taxes, such as through a retirement account, these may become your beneficiaries’ responsibility once your assets are liquidated.

With the assistance of our Edmonton estate administration lawyers, you may be able to make informed choices to mitigate the costs associated with planning your estate.

Planning Ahead: Your Last Will and Testament

Having a last will and testament in place is one of the most important things you can do to reduce your loved ones’ stress after you pass away. If you die without a will, known as dying intestate, your assets will be distributed according to the provisions in Alberta’s estate administration act, which may mean your heirs need to pursue costly litigation in order to access your assets.

Planning with your beneficiaries in mind may include setting up a trust for loved ones who might be under the age of 18 when you pass away. This can ensure their inheritance is safely held until a time of your choosing - perhaps once they reach the age of majority.

To learn more about what you may need for a last will and testament, and to address your questions on what are the various types of trusts available for estate planning purposes in Alberta, contact our Edmonton estate administration lawyers today.

Considerations for Strategic Tax Planning

If you wish to reduce the taxes that may possibly affect your beneficiaries in the estate administration process, you may be able to do so by making particular choices to structure your estate.

Your will may, for example, provide for a charitable donation to be made by your estate. Taxes on capital gains may also be reduced by strategizing the timing of an asset’s sale. 

During your lifetime, you may wish to make certain arrangements to streamline the inheritance process on major assets. For example, if you share property with a spouse, you may wish to establish a joint tenancy. That way, when you pass away, your spouse will automatically retain ownership of the property, with no need for probate, through right of survivorship.

Contact Our Edmonton Estate Administration Lawyers Today for a Consultation

Planning for the future of an estate can be a challenging process, and unexpected expenses can make it financially stressful. Our Edmonton estate administration lawyers are here to help address your questions and concerns at any step of the process. Contact us today to book a consultation and learn how we may be able to help.

** Please note, this article is intended as a general overview on the subject of estate administration law, and is not intended to be legal advice. If you are seeking legal advice, please consult with an Alberta estate administration lawyer.

Common Mistakes Estate Executors Make and How to Avoid Them

Common Mistakes Estate Executors Make and How to Avoid Them

Whether you are signing your life insurance documents, organizing a trust, or preparing to write a will, you will need to decide on a beneficiary or beneficiaries. This is a key part of planning for the future, and ensuring that your assets will be distributed according to your wishes. For those looking to streamline the process of settling an estate, naming beneficiaries often features on lists of tips on how to avoid probate in Alberta.

The field of estate law involves the management of a person’s property and assets after their death, and it includes the areas of estate planning and administration, as well as the resolution of conflicts that may arise. Our Edmonton probates and wills lawyers would be happy to discuss your particular needs and see how we may be of service in helping to structure your trust, will, or more.

What is a Beneficiary?

A beneficiary is somebody who receives assets and property originally owned by somebody else. In the case of the last will and testament left by an individual who has passed away, the beneficiaries are often the person’s close family members, such as a surviving spouse, children, and/or siblings.

People have the freedom to name who they wish as a beneficiary. This can be a friend or colleague, or even a charity or other organization. What you need to provide is a means for the executor of your estate to contact the beneficiaries. 

When you name beneficiaries in your life insurance policy, RRSP, or other registered assets, those assets may go directly to your beneficiaries after your death, without ever becoming part of your estate, or being subject to probate.

What is a Contingent Beneficiary?

A contingent beneficiary is “second in line” to receive your assets after your death, or after the triggering event in the case of a trust. If the primary beneficiary is unable to receive the assets because they have died, are unreachable, or have explicitly refused the inheritance.

It is often a good idea to name a contingent beneficiary, to ensure your estate is distributed according to your wishes. Often, people will name their spouse as their primary beneficiary, and their children as their contingent beneficiaries. That way, if the spouse passes away before the assets are to be distributed, the funds will go to the children.

Considerations for Choosing Your Contingent Beneficiary

Just as you can choose whomever you like as your primary beneficiaries, so too can you choose anyone - or any entity - as your contingent beneficiary. However, there are some considerations you may wish to keep in mind.

If you choose a contingent beneficiary who is a minor, they will require a trustee to look after any funds they inherit, until they turn 18. 

You may choose a contingent beneficiary that is not a person. Some people choose to give their money to a charitable organization, for example, should their primary beneficiary not be available to receive the assets.

 

If you are excluding a potentially obvious choice of beneficiary from your will, you may wish to consult with an Edmonton probates and wills lawyer. In order to minimize the potential that your will might be challenged, it may help to include an explanation of your decision.

Another consideration is the structure of your family. If one of your children passes away before you, would you prefer their spouse to receive the inheritance, or for your remaining children to split it equally? These questions can be challenging to address on your own, but being well-informed about the possibilities of estate planning can help reduce your and your loved ones’ stress in the future. Contact our Edmonton probates and wills lawyers today to discuss your case.

What Happens if I Don’t Name a Contingent Beneficiary?

If you do not name a contingent beneficiary, and your primary beneficiary is unable to receive your assets, then your registered assets become a part of your estate and are subject to probate. If you do not name a contingent beneficiary in your will and the primary beneficiary is unavailable, then your estate may be distributed according to the Alberta Intestate Succession Act.

Contact Our Edmonton Probates and Wills Lawyers Today for a Consultation

Working with a dedicated Edmonton probates and wills lawyer can be essential to ensuring your documents are in order, and your beneficiaries clearly chosen. Whether it is the preparation of a trust or the forming of your last will and testament, or more, our team at Verhaeghe Law would be pleased to discuss your circumstances and see how we may be of service to you. Contact us today to schedule your consultation.

** Please note, this article is intended as a general overview on the subject of estate law, and is not intended to be legal advice. If you are seeking legal advice, please consult with an Alberta probates and wills lawyer.

What is Alberta’s New Trustee Act for Estate Management?

What is Alberta’s New Trustee Act for Estate Management?

On February 1st, 2023, a revised Trustee Act came into force in Alberta. The Act addresses trust laws, and the new revisions aspire to clarify the process as well as expedite the process of trust creation and management. One of its key goals is to reduce the need for court involvement. Where businesses are involved, the new Trustee Act aims to improve the trust management process. It likewise strives to simplify the burden of administration for beneficiaries.

Managing an estate can be a tremendous challenge, potentially requiring an amount of work comparable to a full-time job. With the help of our Edmonton estate administration lawyers, you may be able to streamline the process. From assisting with probates and wills to helping you navigate the legal requirements of a trust, contact us today to schedule a consultation and discuss how we may be of service to you.

What is a Trust?

A trust is a legal arrangement that can be used in estate planning, in order to ensure the ongoing financial protection of a person, a group of people, or a company. A person or company known as “the settlor” gives money to a person or company (“the trustee”) to hold and keep safe until such a time as it may be given to another person or company (“the beneficiary”). 

If you are interested in setting up a trust, or have any questions or concerns about legal planning associated with your estate, contact our Edmonton estate administration lawyers today to schedule a consultation.

Key Differences Between Previous and Current Trustee Act

The preceding Trustee Act had a predominant focus on trusts associated with the last will and testament of an individual. The revised new Trustee Act addresses the needs of businesses as well, expanding the legislature’s scope beyond trusts created under a will. This includes real estate investment trusts created to provide funding for land development, as well as royalty trusts.  

Overview of New Trustee Act Provisions

Some of the key revisions featured in Alberta’s new Trustee Act include:

  • An update to a trustee’s duty of care before beneficiaries, aiming to improve consumer protection. This renders the new Trustee Act consistent with the Estate Administration Act. 
  • Explicit requirements that a trustee provide beneficiaries with reports, and respond in reasonable time frames. The goal is to increase transparency and reduce the costs of trust administration, as well as the need for court intervention.
  • Guidelines for where a trustee is temporarily incapacitated, absent, or otherwise unable to perform their duties. Under the new provisions, a temporary trustee may step in.
  • Guidelines that an unfit trustee may be removed from their duties.
  • A formal process by which a trustee who wishes to resign from their duties may do so.
  • Provisions for navigating decision-making among multiple trustees: they may enact decisions and perform their duties by majority.
  • Provisions for the recognition, validation and regulation of non-charitable purpose trusts.
  • Where courts are involved, the allowance of evidence from outside the trust document in order to determine the intentions of a settlor.

Kinds of Trusts

Trusts available to prospective settlors in Alberta come in a range of models. The kind that may be right for you will depend on a variety of factors specific to your case. Contact our Edmonton estate administration lawyers to discuss your circumstances in detail.

What are the various types of trusts available for estate planning in Alberta? The main two types are a testamentary trust, which comes into action upon the death of the settlor, and an Inter Vivos trust, which may be enacted while the settlor is still alive.

Inter Vivos trusts can be a useful tool in maximizing efficiency related to taxes, as well as minimizing Alberta executor fees. Contact an Edmonton estate administration lawyer today and learn how we might be able to help you.

Contact Our Edmonton Estate Administration Lawyers Today for a Consultation

Whether you are contemplating opening a trust, would like to know more about the responsibilities of a trustee, the rights of a beneficiary, or more, our Edmonton estate administration lawyers would be happy to discuss the possibilities with you. We may be able to help you gain an understanding of changes in Alberta’s new Trustee Act for estate management, and address any concerns you may have. Contact us today to schedule your consultation.

** Please note, this article is intended as a general overview on the subject of estate law, and is not intended to be legal advice. If you are seeking legal advice, please consult with an Alberta estate administration lawyer.

How Long Does an Executor Have to Settle an Estate in Alberta?

How Long Does an Executor Have to Settle an Estate in Alberta?

When someone passes away, their property becomes the responsibility of an estate executor. This is typically a close family member, such as an adult child or spouse of the deceased. It is this individual’s job to deal with the estate according to their loved one’s wishes as outlined in the last will and testament they leave behind.

Depending on the circumstances, administering an estate can be a substantial undertaking, and may take anywhere from months to over a year. In some cases, where there is no will, additional steps may be required in order to take on the powers of a personal representative. Whatever your particular situation, our Edmonton estate administration lawyers may be able to help guide you through the process.

What Does an Executor Do?

It is an executor’s duty to settle the deceased’s estate. This usually involves:

  • Taking the will through probate;
  • Paying off any debts the deceased left behind;
  • Gathering the estate’s assets;
  • Closing the deceased’s accounts;
  • Notifying beneficiaries of the process;
  • Handling the deceased’s taxes;
  • Distributing assets among beneficiaries;
  • And more.

Serving as the executor of an estate can be a daunting job, especially when factored on top of a person’s regular career and family obligations. Because the executor is often a close family member of the deceased, the process may also be emotional, intertwined with grief and possible family tensions. Working with our Edmonton estate administration lawyers may be instrumental in reducing some of the stress.

The will typically includes a provision for remuneration for the executor, in recognition of their labour. Usually, this is calculated at between 1-4% of the estate’s gross value for each year the estate is open. It can be helpful to keep in mind that this payment is taxable as income, while inheritance money is not. Because of this, executors who are also beneficiaries in the will may choose to waive their remuneration.

Probating a Will

In order for the executor to carry out the wishes of the deceased in distributing the estate, they must usually first probate the will. This means finding the will and bringing it before a judge. The judge then confirms that the document is valid and that the executor has the right to represent the estate. In some cases, the deceased may have already made provisions according to their estate planning checklist, structuring their will such that property passes to the beneficiaries without the need for probate.

While navigating probates and wills, the executor must gather all relevant documentation, which may include: 

  • The will;
  • Banking and financial statements;
  • Mortgages;
  • Medical bills;
  • Birth and death certificates;
  • Life insurance policies;
  • Deeds;
  • Titles;
  • Corporate records;
  • Debts;
  • Stocks or bonds;
  • A list of assets;
  • Tax records;
  • And more.

With all the information gathered, the executor then typically works with an estate lawyer who represents them in probate court. Once the executor receives the Grant of Probate from the court, they may begin to execute the wishes of the deceased.

How Long Does the Process of Settling an Estate Take?

In Alberta, there is no strict timeline for an executor to settle an estate. It is generally expected to be done as soon as possible, and takes about a year on average.

However, this timing may vary vastly. Many factors influence the process: the size of the estate, how many debts the deceased may have owed, how many beneficiaries there are, and more. In some cases there may be contentions within the family. A question often asked is can a beneficiary contest a will? The answer is yes, they may, and this may lengthen the process of settling an estate.

The process may likewise be longer if the deceased died without a will. Conversely, if the estate was relatively small, with no debts and few beneficiaries, the estate may be settled in a matter of months.

Contact Our Edmonton Estate Administration Lawyers Today for a Consultation

Serving as the executor of an estate can be challenging on both an administrative and emotional level. Having the support of a legal team advising on estate administration matters may help ease the burden. Contact us today to discuss the specifics of your case, and see how our team of Edmonton estate administration lawyers may be of service to you. 

** Please note, this article is intended as a general overview on a legal subject and is not intended to be legal advice. For legal advice, please consult with a lawyer.

What Is the Difference Between Grant of Probate and Grant of Administration in Alberta?

What Is the Difference Between Grant of Probate and Grant of Administration in Alberta?

After a person dies, decisions must be made as to what to do with their estate. A grant of probate and a grant of administration are both legal processes involved in this aftermath, but they have different applications and are used under different circumstances. If you have questions about grant of probate and grant of administration, or any other matter concerning the management of an estate, contact our Edmonton estate administration lawyers today for a consultation.

What Is a Grant of Probate?

When a person leaves behind a will, they typically name an executor who will administer and settle the estate according to the wishes of the deceased. A grant of probate is a kind of court order that confirms the validity of the will and the executor’s power to execute it. Filing for probate involves submitting documents such as a death certificate, bank statements, title to real estate, and more.

Not every will requires a grant of probate - if the estate assets total less than $25,000, then the institutions holding the deceased’s assets (such as banks, mortgage lenders, etc.) may transfer them to the executor without probate. Likewise, probate may not be required for assets that fall outside the will, such as those owned in joint tenancy or with a designated beneficiary.

If the deceased owned real property (other than joint tenancy), then a grant of probate is required - even if the assets total less than $25,000.

What Is a Grant of Administration?

A grant of administration is similar to a grant of probate in that it provides an executor with the legal power to administer the estate of a deceased individual. If the deceased did not have a will (and therefore did not name an executor), a person can apply before the court to be appointed as the estate administrator. 

Other instances in which a grant of administration may be requested include:

  • If the deceased had a will, but the executor named therein does not want to or cannot perform the job.
  • The deceased had a will, but the court determines that will to be invalid (eg. if they were not of sound mind, or if they were coerced into writing it).

There is an order of priority for the people who may apply for a grant of administration. If the deceased left behind no will, for example, the following people may apply, in this order:

  1. The surviving spouse of the deceased, or an individual named by the surviving spouse.
  2. An adult child of the deceased, provided the majority of the deceased’s children consent.
  3. An individual named by a child of the deceased, provided a majority of the deceased’s children consent.
  4. An adult child of the deceased, without the other children’s consent.
  5. If the deceased did not have any adult children, then an heir (an individual with entitlement to a share of the estate).
  6. Anyone - including a friend, a lawyer, or an accountant. 
  7. If no one is willing to step forward, a Public Guardian and Trustee may apply.

Contact Our Edmonton Estate Administration Lawyers Today for a Consultation

Navigating the management of an estate can be a challenging endeavour, particularly while in the early stages of grieving the loss of a loved one. Whether you have questions about applying for a grant of probate or grant of administration in Alberta, or would like to discuss your options in an estate administration matter, our team at Verhaeghe Law would be happy to talk. Contact us today and learn what our estate administration lawyers might be able to do for you.

** Please be advised, this article provides a general overview on a legal subject, and should not be construed as legal advice. For legal advice, please consult with a lawyer.