Mississauga Wills & Estates Law Blog

Valuable real estate is bound to be a challenge when it comes to writing a will, especially if there are multiple beneficiaries. But this challenge can deepen if the land is a working farm, especially if the intention is to keep the farm in business rather than sell it. Without proper planning, communication and documentation, the Ontario farmers' dreams of a multi-generational business can turn into an estate administration nightmare for their families.

There are several things that can make estate administration a challenge for the beneficiaries of farmers. One major challenge is that capital gains taxes or probate can force the sale of a farm. Rural properties in Ontario can often carry a hefty pricetag, and even farmland exemptions keeping the land in the family after death requires some planning.

Conflict of interest is often a question that arises when creating estate plans. Specifically, some people may wonder if naming a beneficiary as an executor could lead to a will being challenged. Certainly, Ontario wills that name beneficiaries as executors do have an added layer of complexity, but this is very common practice and can be a fine solution if navigated properly.

People tend to name beneficiaries to execute their estate due to trust. This person is typically very close, often family, and aware of the person's assets, liabilities and wishes. There is also an argument that a beneficiary will have more incentive to do a good job with estate administration, since they often feel an obligation to the other beneficiaries and the person who named them.

When it comes to distributing assets and fulfilling final wishes upon death, high-valued items are often at risk of becoming most contentious. But, it is important for Ontario executors to consider that value can extend beyond the financial and also include emotional impact. Sentimental items, even those with lesser value in the marketplace, can be a significant cause of issues in estate administration. Here are some tips for executors who may be handling these touchy situations.

First, it is important for beneficiaries to be on the same page about the contents of a will early on. If possible, these conversations should take place while the owner of the sentimental items is still alive. However, if this isn't possible, bringing people together at the beginning to raise certain items of particular significance and negotiate what they may like can avoid conflict later down the line.

When someone dies, particularly without a binding and well-communicated plan in place, it is not uncommon for disputes to arise regarding assets and succession. This is particularly true for business owners, who often own one more more complex nonliquid assets in their businesses. There are a few key decisions Ontario business owners can make in advance to ease this transition and avoid estate litigation.

The first decision that must be made is whether to transfer the business to another person, or to sell it upon the owner's passing. This decision can be somewhat complicated if the business has multiple owners. It can also be complicated if the owner has a child or children interested in running the business who may not have the skills to do so, or if there are multiple children but only one is interested in proceeding with the business. However, avoiding this decision ultimately puts those left behind in a difficult position, so it is important to explore options and make wishes known.