Summary of Standard Willmcleanap2019-06-19T15:21:52-04:00
SUMMARY OF STANDARD WILL
REVOCATION: This will revokes any previous wills made.
RRSP and PENSION FUNDS: This clause appoints a named person to be the beneficiary of registered retirement savings plans, registered income funds and other pensions.
GUARDIANS and CUSTODIANS: This clause appoints named persons to have custody of your children and/or guardianship of property.
EXECUTOR(s) and TRUSTEE(s): One person or trust companies is appointed to oversee the administration of your estate.
GIFTS TO TRUSTEE: The distribution of assets as per your wishes.
PERSONAL PROPERTY: This clause gives all personal effects, household goods and vehicles to a name beneficiary who must survive for more than 30 days after the date of death in order to inherit.
DEBTS AND DEATH TAXES: The trustee is directed to pay all debts and taxes payable in consequence related to the death.
CONVERSION OF ASSETS: The trustee is directed to realize the assets of the estate and is not bound to rid the estate of those assets which are not authorized for trustees.
RESIDUE: Detailed explanation as how to distribute funds to all beneficiaries. Several examples are provided in the sample.
ALTERNATE RESIDUE: If all said parties listed under Section 5(4) REISDUE are not living than the estate shall be distributed to alternate beneificaries listed in this clause.
FAILURE OF GIFTS: Should the named beneficiaries of the said will not be living on the 30th day following my death than the residue of the estate shall be directed to alternate parties.
PAYMENT FOR MINORS: This clause permits the trustee to pay out money on behalf of children whose shares are being held in trust.
POWERS OF TRUSTEE: These clauses outlines the power the trustee has to carry out the provisions of the will. These powers can be made to the absolute discretion of the trustee for the following:
INVESTMENTS: The Trustee can make any investments that are deemed appropriate.
SELLING AND DISPOSING: The Trustee can dispose of the assets subject to trusts of the said Will.
RETENTION OF ASSETS: The Trustee shall hold any assets or investments for any length of time entitled by law to invest trust moneys. These assets and investments shall be deemed to be authorized investments.
DISTRIBUTION IN SPECIE: This subparagraph ensures that the trustee does not have to sell assets in order to make a distribution. The trustee may distribute assets in kind, and the only real issue is valuation of those assets. This clause directs the trustee to exercise discretion in fixing values on different kinds of assets.
Employment of Agents: The Trustee can engage the services of agents including lawyers, accountants, real estate agents, etc. and may compensate those agents out of the trust money. The agents’ fees may be deducted from the trustee’s compensation
REAL PROPERTY: This subparagraph is intended to assist the trustee who does not wish to sell real estate or cannot find a buyer for real estate because the timing is inappropriate and who must therefore manage the real estate in a business-like manner.
LOANS TO BENEFICIARIES: Loans to beneficiaries is a useful subparagraph. As outlined, the Trustee can lend money or other assets of the estate to any beneficiary with or without interest at the absolute discretion that the Trustee deems appropriate.
BORROWING: Trustees are not entitled to borrow without specific authority to do so. Generally, trustees would not want to borrow; however, it may be necessary to bridge finance where liquid assets are not available to pay debts.
SETTLEMENT OF CLAIMS: Generally, Trustees should not settle claims against the estate without the benefit of a court order and full litigation. However, that is not always practical, and so, trustees should be given power to unilaterally settle claims. These may be claims by a surviving spouse, by the beneficiaries, or indeed by CCRA (Canada Custums and Revenue Agency).
SECURITIES: This subparagraph is directed to the continued holding of shares of private corporations. Such shares might be assets with a “special relationship or special value”, if any, to the purposes of the trust or to one or more of the beneficiaries, as set out in s.27(5), para 7, of the Truststee Act.
STOCKS DIVIDENDS AND RIGHTS: The Trustee is directed to deal with all stocks and dividends in which they can choose to retain and or sell which ever my Trustee considers in the best interests of the estate and/or all beneficiaries.
ELECTIONS: The Trustee can choose whether or not to make any election or designation in which the Trustee considers in the best interests of the estate and/or all beneficiaries.
TRANSACTIONS WITH TRUSTEE: A trustee is not entitled to self deal. However, it may be that a trustee would want to purchase an asset such as a piece of real estate from the estate. Generally, the court would have to authorize such transaction unless a clause similar to this subparagraph is included in the will.
RSP CONTRIBUTIONS: The Trustee shall make contributions to any registered retirement savings plan that is owned between the date of death and sixty days after the end of the calendar year in which the death occurs.
DEFINITION OF RELATIONSHIPS: This subparagrah is instructing that no illegitmate children can benefit from the said estate.
EXCLUSIONS FROM NET FAMILY PROPERTY (ONTARIO): This clause determines whether or not any capital gains earned will be payable by the estate and/or that no spousal rights can be claimed by any spouses of the beneficiaries.
COMPENSATION: The Trustee can authorize payment of their services with the approval of all beneficiaries. If any disputes arise surrounding payment than the courts can award the appropriate payment.
GOVERNING LAW: The will shall be governed in accordance with the laws of Ontario.
HEADINGS: The paragraph headings are used to easily identify each clause, the headings does not affect the meaning of the paragraph following.
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