Don't count on an inheritance

[troutman]

Originally Posted by Hack&Lube

What happens to debt when you die?

An article about Insolvent Estates (from BC):

http://rulelaw.blogspot.com/2006/07/...t-estates.html

Instead of administering the estate yourself, you may apply to court for permission to have a trustee in bankruptcy appointed under the Bankruptcy and Insolvency Act, R.S.C., 1985, c. B-3. The trustee in bankruptcy would then assume responsibility for distributing the assets among the creditors

In an insolvent estate, a court application could be made to determine how to divide the estate amongst the creditors, and discharging the executor.

[Cowboy89]

I often wonder if large inheritance's are good things for families at all. As kindof echoed from MarchHare and Cowperson regarding siblings, it seems they could have greater potential to make life worse from family strife regarding it's distribution. I'm sure lawyers who work on estates probably have a lot of terrible stories of families ruined.

[Hack&Lube]

Originally Posted by Bobblehead

This is an American article. While many of the issues discussed are valid, things like Estate taxes or inheritance taxes are totally different. I wish Canadian news would explain those difference, or at least mention that there is a difference. Maybe Quebecor should have hired someone to do more than cut and paste.

The article mentions the median inheritance is $64,000 and then goes onto say that probate and taxes will take a bite. I'll assume the $64,000 is pre-estate taxes and that number should probably average out be about the same for Canada.

In Canada, AFAIK, there are no estate taxes and the transfer of estate is considered a sale.

[troutman]

Originally Posted by Cowboy89

I'm sure lawyers who work on estates probably have a lot of terrible stories of families ruined.

Worse than divorce.

[pylon]

Originally Posted by Cowperson

My mom recently told my brother that I've done too well in life, that I didn't need any more money and that her will would split all her assets between my brother and sister, neither of whom have saved a dime in their lives.

I'm a little confused as to how to react to this news. If at all.

However, I am a little amused that she lives in Three Hills, currently under RCMP siege, and, out driving yesterday, she was stopped and had her car searched from bunghole to butthole.

Heheheheheh.

Cowperson

All joking aside, I went through the discussion with my folks a while back about all this stuff. My old man is an old Oil and Gas guy, and they really minded their finances over the years, and are pretty well set up.

When we were setting up their will, they had it set up that they would leave 75% to me, the remaining 25% to my deceased sisters kids. Since they raised the kids, I told them to split it 33/33/33, and leave me their house.

But I really, really wish, they could somehow perfectly time it, that they blow every last penny on an epic 10 year world tour spending the last one on their last day on earth, and leave nobody a nickel. Raising 2 sets of kids back to back earned them that right, but they just refuse to quit being such tightwads. It really bugs me actually, that they refuse to indulge in life, when they are both around 70, and don't have a ton of spry years left.

[Hack&Lube]

Originally Posted by Cowboy89

I often wonder if large inheritance's are good things for families at all. As kindof echoed from MarchHare and Cowperson regarding siblings, it seems they could have greater potential to make life worse from family strife regarding it's distribution. I'm sure lawyers who work on estates probably have a lot of terrible stories of families ruined.

My grandfather's brother had his father's will changed without the knowledge of his siblings years ago to exclude them. Then most of the legal documents and all records were destroyed by the war and invasion of China by the Japanese. Money and inheritance definitely can bring out the worst in some people and families. There is part of my family that won't talk to the other anymore because of the results of what happened here. I am on the poor side while the other side is living in multi-million dollar properties around the world based on that initial nest-egg.

[troutman]

Originally Posted by Hack&Lube

In Canada, AFAIK, there are no estate taxes and the transfer of estate is considered a sale.

It is different from province to province. Ontario and BC (IIRC) collect a signficant probate fee (which is really a disguised inheritance tax). Alberta is fortunate in this regard - presently, our maximum probate fee is $400.00.

[Hack&Lube]

Originally Posted by troutman

It is different from province to province. Ontario and BC (IIRC) collect a signficant probate fee (which is really a disguised inheritance tax). Alberta is fortunate in this regard - presently, our maximum probate fee is $400.00.

My family is about to receive a substantial inheritance from my grandmother's estate. She was not a Canadian citizen (the status of this, I am unsure of. They attempted to file immigration papers years ago and I am in the dark about what actually happened). Her money is in an overseas account in Hong Kong. Would we need the services of a Canadian lawyer to facilitate the transferring of the estate?

[MarchHare]

But I really, really wish, they could somehow perfectly time it, that they blow every last penny on an epic 10 year world tour spending the last one on their last day on earth, and leave nobody a nickel. Raising 2 sets of kids back to back earned them that right, but they just refuse to quit being such tightwads. It really bugs me actually, that they refuse to indulge in life, when they are both around 70, and don't have a ton of spry years left.

My parents' financial advisor told them, "If I've done my job properly, then the last cheque you'll ever write will be to the funeral home. And it will bounce!"

[red sky]

Originally Posted by Hack&Lube

My family is about to receive a substantial inheritance from my grandmother's estate. She was not a Canadian citizen (the status of this, I am unsure of. They attempted to file immigration papers years ago and I am in the dark about what actually happened). Her money is in an overseas account in Hong Kong. Would we need the services of a Canadian lawyer to facilitate the transferring of the estate?

You got that email too hey?

[troutman]

Originally Posted by Hack&Lube

My family is about to receive a substantial inheritance from my grandmother's estate. She was not a Canadian citizen (the status of this, I am unsure of. They attempted to file immigration papers years ago and I am in the dark about what actually happened). Her money is in an overseas account in Hong Kong. Would we need the services of a Canadian lawyer to facilitate the transferring of the estate?

Possibly, but I don't think it would be necessary.

[Hack&Lube]

Originally Posted by red sky

You got that email too hey?

Yeah, I just need to send $10,000 to a Nigerian chemist first so I can get the chemicals to scrub the magic ink off the dollar bills.

[Knut]

My one set of Grandparents did things differently. They calculated what and Mine and my brothers inheritance would likely be when they passed on and gave it to us to use to pay for university. That helped set both of us up better when we left school. BTW, they are still alive and kicking and living debt-free on a golf course.

[Hack&Lube]

Originally Posted by Hesla

My one set of Grandparents did things differently. They calculated what and Mine and my brothers inheritance would likely be when they passed on and gave it to us to use to pay for university. That helped set both of us up better when we left school. BTW, they are still alive and kicking and living debt-free on a golf course.

Yes, restricting inheritance or some kind of trust fund for educational purposes or targets is a fantastic way to distribute money. Teach a man to fish, etc. Giving your progeny that leg-up (and incentive) on their education and career is a far bigger and better thing you can do for them than a wad of cash they'll blow on a hot tub and a car.

[Ben_in_Canada]

My folks have been on an endless SKIing holiday since they retired.
I'm pretty sure that I'll miss out on everything but maybe a little cash as they and all their assets are overseas.

[rubecube]

Originally Posted by Cowboy89

I often wonder if large inheritance's are good things for families at all. As kindof echoed from MarchHare and Cowperson regarding siblings, it seems they could have greater potential to make life worse from family strife regarding it's distribution. I'm sure lawyers who work on estates probably have a lot of terrible stories of families ruined.

Yeah, I'm sort of worried about this with my family. On my mom's side I have a sister and two step-sisters, so everything will likely be divided 4 ways, unless the one flakey step-sister gets in the way. On my dad's side, however, is just me and my sister. My sister hasn't spoken to my dad for about 3-4 years now and I don't see that relationship being reconciled anytime soon. My dad will likely leave everything to me, which is going to piss my sister off, but is probably fair considering I'll be the one taking care of my dad when he becomes ill, etc.

That being said, I tend to be fairly amicable so I'll likely capitulate a little a bit.

[flamesfever]

In my experience, nothing can be more divisive, or on the other hand, cohesive, to family members than the way inheritances are given.

Personally, I think the safest way to distribute an inheritance is to give each child the same amount, regardless of the disparity in their character, ability, income, wealth, etc.

[AR_Six]

Originally Posted by troutman

It is different from province to province. Ontario and BC (IIRC) collect a signficant probate fee (which is really a disguised inheritance tax). Alberta is fortunate in this regard - presently, our maximum probate fee is $400.00.

Meh, probate fee isn't THAT significant. In BC it's 0 up to $25,000, 0.6% from $25,000 to $50,000, and 1.4% over $50,000. Ontario is similar, slightly higher once you're over 50 grand. On a really big estate it could end up being a chunk of change, but not too painful.

In Canada while family strife is a thing, for sure, the bigger issue in my view is seeing a long-standing family business come crashing down as a result of liquidity problems. I.e., sudden huge capital gain liability on shares of the family corp that wasn't properly planned for, and not enough cash in the estate to pay it, which requires paying a dividend out of the corp to the estate, triggering a second stage of tax to the estate (and thus requiring a larger dividend); meanwhile the corp needs to sell business assets in order to have the cash to pay the dividend, thereby triggering a third stage of tax on that sale in the form of recapture, GST/HST, etc... pretty soon the tax bill is a quarter of the company's book value. Note to people: plan ahead.

[Cowperson]

Originally Posted by pylon

All joking aside, I went through the discussion with my folks a while back about all this stuff. My old man is an old Oil and Gas guy, and they really minded their finances over the years, and are pretty well set up.

When we were setting up their will, they had it set up that they would leave 75% to me, the remaining 25% to my deceased sisters kids. Since they raised the kids, I told them to split it 33/33/33, and leave me their house.

But I really, really wish, they could somehow perfectly time it, that they blow every last penny on an epic 10 year world tour spending the last one on their last day on earth, and leave nobody a nickel. Raising 2 sets of kids back to back earned them that right, but they just refuse to quit being such tightwads. It really bugs me actually, that they refuse to indulge in life, when they are both around 70, and don't have a ton of spry years left.

I want to be shot to death at 94 years of age by a jealous teenage husband outside a diner where I've just put a delicious serving of pie ala mode on VISA knowing the credit card company would be stiffed because I'd already spent my last dime on a beer sunning myself at an outdoor patio bar further down the street.

I tell my clients to never leave anything behind that people can fight about . . . . . because they will. It doesn't even have to be about brothers and sisters but rather the husbands and wives behind the siblings screaming at them to "get in there and get your share."

Put names on pictures hanging on the wall, divide up the jewellry beforehand . . . . . its not just about the money.

If you care about your family, make sure there is nothing left to fight about when you leave this world.

The mantra of treating siblings "fairly but not necessarily equally" applies to a son who may be working the family business while other siblings went off to other careers. In that case, it can be impractical to be dollar-for-dollar fair about things.

If it were anyone else, I can tell you my mother would probably be making a big, big mistake in terms of family relations. Its not well-thought-through for sure. As a general principle, I think I should probably be offended at being essentially punished for being prudent and successful while my siblings are rewarded for the opposite.

I won't take it out on them any more than they already deserve.

Cowperson

[Hack&Lube]

Originally Posted by Cowperson

I want to be shot to death at 94 years of age by a jealous teenage husband outside a diner where I've just put a delicious serving of pie ala mode on VISA knowing the credit card company would be stiffed because I'd already spent my last dime on a beer sunning myself at an outdoor patio bar further down the street.

I tell my clients to never leave anything behind that people can fight about . . . . . because they will. It doesn't even have to be about brothers and sisters but rather the husbands and wives behind the siblings screaming at them to "get in there and get your share."

Put names on pictures hanging on the wall, divide up the jewellry beforehand . . . . . its not just about the money.

If you care about your family, make sure there is nothing left to fight about when you leave this world.

The mantra of treating siblings "fairly but not necessarily equally" applies to a son who may be working the family business while other siblings went off to other careers. In that case, it can be impractical to be dollar-for-dollar fair about things.

If it were anyone else, I can tell you my mother would probably be making a big, big mistake in terms of family relations. Its not well-thought-through for sure. As a general principle, I think I should probably be offended at being essentially punished for being prudent and successful while my siblings are rewarded for the opposite.

I won't take it out on them any more than they already deserve.

Cowperson

So jealous teenage husband kills you, because your 94 year old self was getting hit on by his 17 year old wife? Good way to go.