3 ways to re duce estate taxes and avoid unintende d complic ations

Recently, Broadmead Care B oard Member B ob shared with us a stor y about the executor of a dear friend’s estate. Here are some of the things he learned:

1. Our friend, who knew she was approaching death, chose to leave her house to a relative. By not transferring title before death, more than $15,000 of probate fees were levied on her principal residence. Transferring title before death could have avoided this.

2. There were more than twenty beneficiaries on two continents named in the will. Each needed to be located and provide confirmations to the estate Until they did, no bequests could be distributed. Since the neighbour continued to be of sound mind, making payments shortly before her death instead of leaving bequests in her Will would have further reduced probate, executor, and legal fees It would also have shortened how long it took to wrap up the estate.

3. B eing co-executors meant both B ob and his wife had to be present for all official meetings regarding the Will. This wasn’t much of a problem for them, but it could be difficult where coexecutors work or live in different cities or provinces. Naming a single, local executor can simplif y the process.

B ob says they learned a lot about how to manage their own estate as they worked through that of their neighbour. He hopes describing these pitfalls might be helpful to others when considering their estate planning and, with professional advice, perhaps avoid unintended complications in their own Wills.

While we ’ re not experts, we have seen firsthand how charitable donations can help offset estate taxes. We have been the ver y grateful recipient of legacy donations that will help us protect the future for Canada’s veterans, seniors, and adults with disabilities who live in Broadmead Care Homes.