The Westerner for June 24, 2013

Grocery Cards: purchase from Brian - profit funds our club activities and helps to keep our dues and fees in line.

50/50:  Darrel Ripley and Joe did not match cards; $91 carried to July 8

Finemaster:  because of the recent flooding of rivers in Alberta, Don raised funds through questions about Alberta rivers - what rivers combine to become the South Saskatchewan (South Saskatchewan, Bow, Red Deer, Old Man); where do they start - all from the mountains; there are many rivers that make up the North Saskatchewan, name 3 - Nordegg, Vermilion, Sturgeon; name the dams on the North Saskatchewan - Big Horn and Brasseau; how many irrigation districts are there on the South Saskatchewan - 13 (all that are in Alberta); what river caused flooding in High River - Highwood; what aboriginal reserve needed help - Siksika; what Alberta river system feeds the Mississippi - Milk

Guest Speaker:  Darrel Ripley introduced Avideh Musgrave, a lawyer who specialises in education on wills and estates.  She graduated from University of Alberta Law Faculty and was admitted to the Alberta Bar in 2001.  She covered 3 of many areas from her specialty.

Probate - Alberta law is different than other provinces - here the maximum court probate fee is $400 (plus legal if you are using a lawyer).  This is at least 50% less than other provinces.   Probate is a legal process that confirms that the will being probated is authentic and, thus, gives the executor some protection against law suits that could occur if an heir or other interested party felt the will was not valid.  If probate is not obtained and a law suit against the executor is successful, the executor is personally liable for any monies paid out from the estate that cannot be recovered.  Thus banks normally require probate before they will allow an executor to take possession of estate funds.

What is the situation around transferring assets into joint name - probate is not needed if one of joint owners pass away - thus it is equitable in a spousal arrangement.  However, problems can arise if the remaining spouse decides to add one of the children as joint owner, usually to bypass probate fees.  While the senior owner is still alive, this type of arrangement can interfere with the desire to sell or cash in assets, especially GICs or bonds, where cash may be needed to cover living expenses.  Also, the joint ownership exposes the jointly owned assets to the liability of the child/children added as co-owners.  If the child becomes divorced then 100% of the joint property can be lost in any resulting settlement.  In addition, it opens the senior to elder abuse by family members.  It can cause conflict with and between children if not all are added as joint owners.  Another problem could be the disenfranchisement of the heirs of a junior-aged joint owner if that junior owner passes away before the senior and the junior's heirs no longer participate in the eventual estate of the senior.  Usually all owners are taxed on income from jointly owned assets so taxation of the children can be unexpected and troublesome.

Wills and Successions Act 2012 Alberta - it affects anyone who dies after enactment in 2012.  It affects newly married or recently divorced people as the prior will may or may not still be valid.  In blended families, the estate may go to the new spouse unless the will specifically identifies that the assets or part thereof go to the prior spouse/children.  If there is no will, there are now more problems than under the previous statutes.  Will kits makes mega problems and make lawyers rich because they do not clearly specify the intent of the will maker (saving the price of legal assistance in preparing the will causes problems and serious costs upon probate).  Judges have more power to evaluate the intent of the will so if it is not clear the assets could go to individuals not intended.  Disabled children need protection for their lifestyle - trusts are needed and ways have to be established to protect their own assets/income streams (like AISH benefits).   Thus get your wills updated and obtain one if you don't have one now.  Holograph wills cause as many problems as will kits unless the deceased is very young without many assets. 

Avideh was thanked by Brent