In Canada, after a person dies, the due date for filing his or her tax return is typically one of two dates:
In January we presented a list of duties for estate executors in Ontario. Although the list is not exhaustive, it begins to illustrate just how overwhelming the job of an estate executor can be -- because, make no mistake, it is a job.
If you have been appointed as an estate trustee in Ontario but are unsure of how to manage all of your duties, then you are not alone. Many trustees and executors feel this way, especially after the death of a loved one.
Estate executors and trustees in Ontario are perhaps under more pressure today than ever before. As we discussed in a recent post, individuals who have received a Certificate of Appointment must file an Estate Information Return with the Ministry of Finance within 90 days of receiving the certificate.
Probate law in Ontario changes, and individuals named as estate executors must stay abreast of the changes to ensure that estates are properly administered and to protect against liabilities.
The job of administering a trust is overwhelming for many people. In fact, many Canadians who are named as estate trustees have little or no experience in carrying out the required duties, yet trustees can be held liable for mistakes. Disputes over trust administration can also lead to costly litigation.
If someone you know and love has died, then you may be faced with the daunting task of handling matters of your loved one's estate, including the payment of debts and the distribution of assets. Depending on the kinds of assets involved, you may need to file for a Certificate of Appointment of Estate Trustee. We've discussed this filing process in one our previous posts.
Ontario residents may know that in appointing an executor to carry out the tasks set forth in a will, people automatically consider trustworthiness and reliability, but residency is another attribute that might also be considered important. The Canada Revenue Agency has stated in an interpretation bulletin that the residence of a trust depends on the residence of the trustee. The interpretation applies to decedents' estates as well.
When an Ontario resident passes away, his or her loved ones are often left with the task of paying his or her debts and distributing assets. One of the first steps in that process is applying for a Certificate of Estate Trustee with the Ministry of the Attorney General. The Certificate of Estate Trustee designates a certain person as the trustee responsible for settling the deceased person's affairs. Many people refer to the estate trustee as the executor.
Ontario residents undertaking their estate planning would do well to make sure they appoint effective and trustworthy fiduciaries. In estate planning, a fiduciary is someone appointed to handle various aspects of a person's estate. A fiduciary might be a trustee, a lawyer or anyone else entrusted with the job of managing the person's affairs. While some people associate estate planning with leaving instructions about managing their assets after their death, estate planning also involves appointing people to manage one's medical and financial decisions if the person alive but incapable of making those decisions for himself or herself.