Real Estate Education Series (9) ~ Estate and Succession Planning
The course on the “Estate and Succession Planning” will run on 20 October 2014, from 1:30 pm to 4:30 pm in Mississauga.
Estate and Succession Planning is an absolute MUST for agents serving the seniors’ market. It’s very easy to say something which is incorrect or to give someone the wrong idea about the law. It’s not that you are holding yourself out as a specialist, it’s just that you are the ONLY professional around. Your client is relying on you, and thinks that you know what you’re doing.
And, yes they should obtain accounting advice from their accountant, tax advice from their tax advisor, legal advice from their lawyer and insurance advice from their insurance agent. The only problem: they didn’t, and they thought that you knew it all.
So, what’s the problem? You smiled knowingly and nodded your head when they told you of their plans. It backfired drastically, and there’s no one around to sue except you. So, now you know who’s going to be sued, even if it isn’t you fault.
We have to talk about the Family Law Act. You have to know and understand the various definitions of spouse and know when to apply them. What is the role of the “pre-nup” and how does it fit into real estate practice. When are parties truly married? May a person have more than one spouse at one time?
Can the person make a Will? Are the capable and are they competent? What’s the test? Can one spouse keep their own private property separate from the other? Do they have to share the matrimonial home? I am expecting that you will already have taken the Family Law Course, but if you haven’t, this will be a quick refresher.
Do you have to share life insurance? What about lotto winnings? What if you are separated at the time of the big win?
What is the equalization payment on death? How is it calculated? Does it have any priority?
Just when is the day of reckoning:
- Day before the day you die,
Each of the dates is quite important and fits into the “calculations”. And, that’s precisely why you are there: to handle the calculations. If it doesn’t make sense, then why move? So, your numbers better be right and let’s make sure that you put everything into the calculations that should have been there.
How long can the widow stay in the house after the husband died assuming it was a matrimonial home. As a matter of right, not because somebody felt sorry for her? What would be your advice:
- 15 days,
- 30 days,
- 60 days,
- 181 days,
- 365 days.
All I can say, is that you better have that apartment ready to go in 59 days, because she’s moving in the next day.
What does common law mean? Are there any special rights? Should you have a pre-nup even if the couple don’t ever plan to marry? If property is registered in joint tenancy, does it truly mean that, on death it’s still in joint tenancy? How does joint tenancy get terminated? There are eight ways? Can you name five of them? OK, try one!
We will review the following:
- What happens if there is no Will, who gets the property?
- What about the creditors? Do they have to be paid?
- Who comes first if there’s not enough money?
- Are there any special rules that apply to pensions and insurance?
- Does a Will cover all property or just some?
- What is the proper use of life estates today in real estate practice?
- If someone promised you the house, is that enforceable?
- How to avoid spending $50,000 on drafting a Will after you are dead.
- A great way to have your first wife and your second wife fighting over your estate after you’re dead
- A great use of corporations as joint tenants
- Can you take the listing before probate?
- Do powers of attorney continue after death?
- An effective use of tenants-in-common to save taxes
- Taxation, exemptions, incidence, rates, investment income, business income
- Special considerations for life insurance
Don’t forget, while we are looking at these issues that we really need to consider three generations: your parents, YOU, and your children. And just about every problem is solvable. You just need to know when to ask the right questions!
If you are working the seniors’ market, I assume that you already know all the answers to these questions. If not, let’s talk about these questions on the 20th.
Limited enrolment. To reserve a seat, please email me at BRMadigan@rogers.com