There are many terms associated with wills. Those who are involved in any form of estate planning and administration will have likely come across the term executor. So what, exactly, does an executor do? A person named as an executor of an estate wears many hats.
British Columbia residents interested in probate and estate planning issues may want some information on the different types of trusts. Depending on how they are used, there may be issues with the trust changing categories.
When a person in British Columbia dies, leaving behind a safety deposit box leased or rented either solely in his or her name or shared with another person, the law provides how the box should be opened and handled. This is important to ensure that the contents of the safety deposit box are correctly accounted for and included in the deceased person's estate.
The legal representative of a decedent is the individual either appointed by the court as the administrator of the estate or named executor of the will in British Columbia and other provinces. In Quebec, this role applies to the person named liquidator of the estate as well. A representative has certain legal responsibilities to fulfill, though the legal representative may name a second person as authorized representative in their place by filing Form T1013 with the Canada Revenue Agency.
If an individual living in British Columbia has been named in a will as a beneficiary but is unable to be located, there are several steps that must be taken. First, the personal representative of the individual who wrote the will must spend 12 months attempting to locate the beneficiary. If the personal representative is unsuccessful, that individual is then permitted to sell the property and deduct the amount that was spent on storage, sale and transportation. The remaining money is then placed in a trust.
When an individual is named the administrator of a deceased person's estate in British Columbia, the job may overwhelm them. Oftentimes, the administrator of the estate was a close friend or relative of the deceased person, and they are going through a grieving process. If the administrator has little experience dealing with financial matters, this can make the job even more difficult.
Individuals in British Columbia who are working on their estate plan may wonder whether the location of the estate executor has any impact on their estate. After a person's death, the residency of their estate will be the same as the residency of the estate executor. The executor's location, therefore, can have a major impact on how the estate is taxed.
Although many celebrities have been making a big deal about why they are choosing not to leave a trust fund to their kids, some British Columbians may want to consider it. Even if a person does not have a multi-million dollar fortune, setting up a modest trust fund could help to protect the inheritor from having their lives potentially ruined by future financial burdens that may pop up in adulthood.
British Columbia residents who have drawn up an estate plan may be surprised to learn that they may have to revisit their plan periodically to make important updates. Due to changes in a person's life and the law, these updates can potentially have a large effect on how their property is distributed.