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Enhanced Dividend for Income

As I have always mentioned how important dividend income is, and that it has always been one of our main focuses, I thought that you would find this article I have recently come across very interesting.

Take a read through it, and should you have any questions or comments, please feel free to email me at hperler@perlerfinancial.com or call me at 604-468-0888. CLICK HERE to read the article.

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Acting as an Executor or Executrix

On the death of your spouse or a loved one or friend you may find that you have been named as the Executor (or Executrix) of a Will. The Executor could also be a trusted friend or an advisor or even a trust company. If the deceased did not have a Will or the Will did not name an Executor then the Surrogate or Probate Court will have to be approached and the court will appoint an appropriate person as the representative. This person is called the Administrator and fulfills the same role as the Executor.

Executors carry out the terms of the Will, pay any estate debts, and perhaps make funeral arrangements. Disposition of an estate is a provincial/territorial concern and each jurisdiction has basic rules outlining what the Executor must do. Many properly drafted Wills will also lay out specific responsibilities or powers given to the Executor which actually makes the process simpler. Check the deceased's Will to see the powers given to the Executor.

Executors are responsible for paying probate fees on the estate. These fees are essentially provincial/territorial death taxes applied to the value of the deceased's assets. They are calculated based on a percentage. Therefore, the larger the estate the higher the probate fees. Probate fees are theoretically intended to pay the costs government incurs to settle a deceased’s affairs. These are a provincial concern and vary quite widely across the country. For example:

In British Columbia the probate fees are $0 on estate values of $25,000 or less; $208 flat fee for all estates over $25,000, plus $6 per $1,000 (or part there of) on estates $25,000 to $50,000, plus $14 per $1,000 (or part there of) on estates $50,001 +. Therefore if a B.C. resident died with an estate value of $200,000 the probate fees would be:

Flat fee = $208 plus,
$25,001 - $50,000 / $1000 x $6= $150 plus,
$50,001 - $200,000 / $1,000 X $14 = $2,100
For a total of $2,458
 

Depending on the nature of the estate, you may want to call in outside professionals to assist in winding up the estate. These could include lawyers and accountants. If an estate is complicated this is certainly advisable. Your financial advisor can also be of assistance with respect to your insurance, estate plans and investments.

Although many family members who are named Executors choose not to be paid, provincial law does allow for reasonable compensation for the Executor. If the Executor is paid, there are guidelines established but the court would have the final say on whether the compensation is appropriate. Any reasonable ongoing expenses incurred to wind up the estate would also be paid.

Your advisor will have additional information and helpful resources about the implications of being an Executor.

Resource: © 2009 DundeeWealth Inc.
Information contained herein is provided for information purposes only and should not be relied upon exclusively as estate, tax planning or investment advice, nor should it be construed as being specific to an individual’s investment objectives, financial situation or particular needs. You should always obtain professional advice before acting on the basis of material contained herein. 

Estate Planning Seminar DVD

Later this month, we are expecting the completion of the DVD of the 2010 Spring Seminar on Estate Planning.  We have already received requests from those who would like to have a copy.  If you did not have a chance to attend our 2010 Spring Seminar, or even if you did attend and would like to see it again, please call or email Josephine Chai at jchai@perlerfinancial.com or 604-468-0888, and she will make sure a copy gets sent out to you when they are ready for distribution.

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