What is Estate Planning?
It is a process that a person uses in order to arrange and manage his or her assets, in anticipation of the person's future incapacity or death. It is the process where you can protect yourself in case of sudden incapacity or your loved ones after your passing.

What is a will?
It is a document that contains instructions from the individuals as to how his/her assets such as a house, car, land, insurance policy etc. should be administrated and distributed after his/her passing.

Who can make a Will?
Any person 18 years of age or older who has sound mind can make a Will. The Person makes the Will is called “the Testator”, it is just a legal name used by lawyers and the court system.

What is Estate Administration?
Upon the death of a person without a will, intestate the management and the legal process to manage the assets and to apply for probate in the court.

What happens if the person does not have a Will at the time of his her passing?
In Ontario, there is a default law that is called the Succession Law Reform Act that will be used by the court. This law divides the Estate assets based on a preset formula. For this reason, the distribution of the Estate Assets may be contrary to the deceased personal wishes. Lawyers do not intend to recommend this time of situation, in particular if there is any potential that Estate will be contested by any relative or potential beneficiaries.

What is Probate?
It is a legal procedure in the court, when the person askes the Court to provide him or her authority to act as a trustee for an Estate. Also, it can be about asking the court to confirm the person authority under the Will and thus, formally approve that the deceased person’s Will is the correct last will.

When Probate is required in Ontario?
Generally, it is not required, if the Estate Assets of the Deceased are held in a joint ownership for example, if in all assets are held jointly between a husband and a wife. This situation is called a joint right of survivorship. It means the property/ assets will be transferred automatically to the other person is that person is named as the beneficiary. If Assets are of fund nature, probate is usually required.

How does the person start a Probate process?
An executor who is named in the Will, or if a person is willing to be an executor, you need to apply in the court to obtain a Certificate of Appointment of Estate Trustee. This process has its own procedural steps that must be done, for instance, notifying the beneficiaries under the will, payment of debts etc.

Who is an Executor?
He is a person who is named in the Will to be a trustee to administrate and manage the distribution of the Assets according to the Will’s instructions. There are a multiple tasks that must be performed by the executor, such as locating the Will, notifying the creditors and beneficiaries etc.

What is a Trust?
In Law, a Trust is type of a documented arrangement whereby a person who is called a trustee holds a property as its nominal owner for the good of one, or more people, who is called beneficiary, known as the “ultimate owner(s)”.Trusts are often referred to as trust documents or trust settlements.

How does Trust work?
In the trust document, you name somebody who is called a trustee who manages and distributes your assets to your beneficiaries following your wishes.

How long does the Trust last?
In Ontario, there is sunset clause that limits the period of the Trust to 21 Years. At this point in time, the law assumes that the trust distributed all its capital property and assets. This time period of 21 Years, it does not mean the Trust automatically died, it means more like all capital gains must be acknowledged and realized and thus the Trust must be reassessed.

What is the Purposes of Trust?
Trust are used minimize taxes paid to the government. Trust also maintains a full privacy and provides protection of assets of your loved ones. There is no need to do Probate in court, which becomes a part of public record, if you have a Trust, full privacy.

What is the advantage of a Trust vs. a Will?
As mentioned above, Trust process is very private and its objective is to minimize tax payable to the movement as to the living trust or testamentary trust. However, a Will must be probated in the court and all its procedural legal steps will be part of the public record. Further, upon Death, the beneficiates of the person with a Will have to pay a considerable amount of money for Estate Tax. It is essential for an Estate to avoid expenses of the probate process.

What is the advantage of a Trust vs. a Will?
As mentioned above, Trust process is very private and its objective is to minimize tax payable to the movement as to the living trust or testamentary trust. However, a Will must be probated in the court and all its procedural legal steps will be part of the public record. Further, upon Death, the beneficiates of the person with a Will have to pay a considerable amount of money for Estate Tax. It is essential for an Estate to avoid expenses of the probate process.

What are the types of trusts in Ontario?
There are many different names for trusts such as Family Trust or Alter Ego Trust or Joint Spousal. However, there are two major types of trust that commonly used. Each category has its own features and plays its own role. There are as follow;

A living trust
or by the Latin term “inter-vivos trust” is w written document in which the individual assets are provide as a trust for the individual use and benefits. For example, you put all your assets, a house, car, business etc. in this trust to minimize your tax while you are still alive and take the benefit of the Trust.

Testamentary Trust
unlike the living trust, a testamentary trust is created by a Will upon the death of the person, testator, outlining specifically how an individual's assets or real properties are designated after the grantor's death.

Revocable trust
as the name sound, can be changed or even terminated by the person during his or her lifetime. If somebody thinks that he may change his or her mind it is the best choice is to go for revocable trust.

Irrevocable Trust
this type of trust cannot be changed or terminated upon its establishment by the person. A court order must be obtained in order to do so.

How to establish a Trust?
To establish your trust you need go to a lawyer. As there are many different requirements and rules under the Income Tax Act that apply to Trusts and to be taken into account in order to draft the most desirable trust that meets your need. Heiblo Law will provide you with all legal advice you may need and assist you to account for all your assets and establish a trust that meets your desire and need

What is Power of Attorney?
It is a legal document that you provide it to someone who you trust to make the right to make financial or health care decisions for you, or sign a document in your absence.

How many types of powers of attorney?
In Ontario, there are two types of powers of attorney, Personal Care Power of Attorney and Power of Attorney for Property.

What is a Power of Attorney for Property?
It is a written document by which you authorize someone to make financial and management decision your behalf.

How long does the Power of Attorney for Property last?
If the Power of Attorney is not limited by a time limit in the documents, then it will continue in effect until death. For this reason, it is called a Continuing Power of Attorney, which means it continues to have effect even in case of you become mentally incompetent.

What type of authority does a Power of Attorney for Property give?
It provides the Attorney with the power to do all the following financial duties

-Taking care of your real property Assets
-Paying your bills.
-Maintain your property or selling it
-Managing your investment portfolio, if you have any.
-Collecting money owed to you from other people.

What does constitute a valid Power of Attorney in Ontario?
To be valid, the Power of Attorney MUST is in writing, and signed by you and two additional witnesses. There are some people who are excluded to be witnesses for Power of Attorney, those are include, the Attorney’s spouse, your own spouse or a partner , your child or any person under the age of 18.

Who can be an Attorney?
Anyone you trust can be an attorney, for example, a Family Member, a Spouse, a Friend, a Business Partner

Who can make a Power of Attorney?
A person who is mentally capable, at least 18 years of age for Attorney for property, or the person can be at least 16 years of age for a personal care power of attorney.

What should a Power of Attorney for Personal Care Contain?
It should clearly express your health care wishes in advance. Thus, any third party such a hospital in case of emergency knows who can provide the instruction on your behalf.

Estate law is a critical aspect of securing your financial legacy and ensuring your loved ones are well taken care of after your passing. Heiblo Law is an Estate law firm Mississauga estate lawyer that will help you through the process of executing but also understanding of estate planning, will drafting, and the intricacies of probate and trusts, you can create a comprehensive estate plan tailored to your needs and wishes.

Consulting with an Mississauga estate planning lawyer is essential to navigate the complexities of estate law and ensure that your estate is administered efficiently and in accordance with your intentions. By taking the time to plan ahead, you can provide your family with peace of mind during challenging times and leave behind a meaningful legacy for future generations. Call Heiblo Law today at 647-317-1908 ext 3.