Author: Arielle Di Iulio

19 Mar

Court Closures Amid COVID-19: A Silver Lining?

Arielle Di Iulio General Interest, In the News, Litigation Tags: , , , , , , 0 Comments

Ontario has officially declared a state of emergency amid the COVID-19 pandemic, and efforts to quell the spread of the coronavirus are now stronger than ever. Indeed, the Federal Government is urging everyone to engage in social distancing, and the courts are no exception.

On March 15, 2020, the Superior Court of Justice published a Notice to the Profession, the Public and the Media Regarding Civil and Family Proceedings (the “Notice”), wherein it announced the suspension of Superior Court of Justice regular operations.

Specifically, the Notice states that all criminal, family and civil matters scheduled to be heard on or after March 17, 2020 are adjourned except for urgent and emergency matters. Matters considered to be “urgent” are set out in the Notice and include motions and applications related to public health and safety and COVID-19; the safety of a child or parent; and time-sensitive civil motions with significant financial repercussions if not heard, among others.

To bring an urgent matter, the motion and application materials can be filed with the court by email. Notably, where it is not possible to email a sworn affidavit, an unsworn affidavit can be delivered as long as the affiant participates in any telephone or videoconference hearing to swear or affirm the affidavit. Urgent matters may be heard and determined in writing, by teleconference or videoconference, unless the court determines that an in-person hearing is necessary and safe.

Although people are being advised to avoid unnecessary attendances at Court, they nevertheless remain open and parties can continue to process “regular filings”.  However, the flexible procedures that have been put in place for urgent matters do not extend to regular filings, which remain subject to the Rules of Civil Procedure.

The court’s response to COVID-19 is a prime example of how the legal system as a whole is being forced to lean on technology in these unusual and uncertain times. While many legal professionals have already adopted digital practices, the courts continue to be behind the times. The Auditor General’s latest audit of Ontario’s court system found that “the Ministry’s pace in modernizing the court system remained slow, and the system is still heavily paper-based, making it inefficient and therefore keeping it from realizing potential cost savings”.  Perhaps this period will give the much-needed impetus for courts to modernize their operations by using electronic service, filing, hearings, and document management more routinely. This would likely be a welcome change for all.

Thanks for reading and stay safe!

Arielle Di Iulio

17 Mar

Your Online Accounts After Death

Arielle Di Iulio General Interest Tags: , , , 0 Comments

Yesterday, I blogged about estate planning for cryptocurrency, a type of digital asset. Today, I provide a snapshot of what happens to some of your other digital assets when you die.

Facebook: When a Facebook user dies, their profile can either be memorialized or permanently deleted. The Facebook user can opt for one or the other while they’re still living. If a user does not choose to have their profile permanently deleted, Facebook will automatically memorialize the profile whenever they become aware of the user’s death. When a user proactively chooses to memorialize their profile, they can appoint a “legacy contact” to manage their memorialized profile. The legacy contact will have the authority to manage the memorialized profile but will not be permitted to log in to the deceased’s account, read the deceased’s messages, and add or remove friends.

Instagram: When an Instagram user dies, their account can either be memorialized or deleted. Anyone can request for a deceased person’s account to be memorialized, but only an immediate family member can request for an account to be deleted. Instagram will not memorialize an account without sufficient proof of death, such as a link to an obituary or news article. To delete an account, the requester is required to verify that they are an immediate family member by providing documentation such as the deceased person’s birth certificate, death certificate, or a Certificate of Appointment of Estate Trustee for the deceased’s estate.

Twitter: When a Twitter user dies, a person authorized to act on behalf of the deceased’s estate or a verified immediate family member of the deceased can request to have the deceased person’s account deactivated. In order to complete this request, Twitter requires a copy of the requester’s ID and a copy of the deceased’s death certificate. Twitter also does not permit anyone to access the deceased person’s account.

LinkedIn: When a LinkedIn user dies, anyone can request to have that person’s LinkedIn profile removed. A person can request that an account be removed by filling out a form with information on the deceased and submitting the form to LinkedIn for their review.

Google: When a Google user dies, their immediate family members and/or the executor of their estate can request to close the deceased’s account. Google will not permit anyone to log into the deceased person’s account; however, individuals can ask Google to provide content from the account. With respect to these requests, a court order issued in the United States is apparently required before Google releases any information. To circumvent this, Google users can use their Inactive Account Manager to automatically share their data with “trusted contacts” after a period of inactivity.

As illustrated by the above, different online platforms restrict a family member’s and/or executor’s access to a deceased person’s online accounts to varying degrees. Notably, most platforms will not allow anyone to log in to a deceased person’s account. As such, if a person would like trusted relatives or friends to be able to access their online accounts following their death, they may want to take steps to ensure that their login credentials will be available to those trusted persons.

Thanks for reading!

Arielle Di Iulio

16 Mar

Estate Planning Considerations for Cryptocurrency

Arielle Di Iulio Estate Planning, Wills Tags: , , , , , 0 Comments

Coinbase co-founder and CEO Brian Armstrong recently blogged about the future of cryptocurrency, predicting that it will reach 1 billion users by the year 2030 (up from about 50 million at the start of this decade). With the anticipated increased uptake of cryptocurrency, we can expect that more and more people will hold these types of digital assets on their death. The question then arises: how should cryptocurrencies be dealt with in one’s estate plan?

By way of background, cryptocurrency is virtual currency that uses cryptography to verify financial transactions and control production of currency units in a decentralized, peer-to-peer exchange network. Cryptocurrency runs on Blockchain technology, which allows for blocks of information about transactions to be recorded and stored on a distributed ledger. When a transaction takes place, a block is added to the blockchain and there is a corresponding change in balance in the buyer and seller’s cryptocurrency wallets.

A cryptocurrency wallet or “crypto wallet” contains a person’s public and private keys – the former is used to receive cryptocurrency and the latter is used to spend/send cryptocurrencies to other wallet addresses. The crypto wallet is the only means of accessing one’s digital currency. There are different types of wallets that can be used to store and access digital currency, such as online accounts, mobile apps, external hard drives, or simply paper.

Because cryptocurrency is an intangible asset with little to no paper trail, special estate planning considerations should be made to ensure that the value of these digital assets is not lost on death and can be distributed to the intended beneficiaries.

First, the cryptocurrency owned by a person should be expressly referred to in their will to ensure that their executor is aware that these digital assets exist. A testator should then provide sufficient detail for their executor to be able to locate and access the testator’s crypto wallet. Specifically, the testator should describe what type of crypto wallet they have, where it is stored, and provide any other information that may be needed to access the crypto wallet. Instead of listing this sensitive information in the will itself, which becomes part of the public record through the probate process, a testator should include it in a memorandum to their will.

Thanks for reading!

Arielle Di Iulio

17 Dec

Restricted charitable gifts: Be careful what you wish for

Arielle Di Iulio Charities Tags: , , , , , , , 0 Comments

With giving season upon us, the philanthropic impulse is stronger than ever. As prospective donors craft their charitable giving plan, they will endeavour to make their charitable contributions as impactful and rewarding as possible. Achieving this philanthropic goal requires careful consideration of the multitude of charitable giving options available to donors.

With more than 85,000 registered charities in Canada[1], there is no shortage of organizations to whom a prospective donor can donate. In addition, there are a variety of ways in which  individuals can donate to their charity of choice, as discussed by Suzana Popovic-Montag in her blog, “Giving money to charity? Know your options to maximize your impact”.

An important consideration that can influence how and to whom a person chooses to donate is what restrictions, if any, they wish to place on their gift. Accordingly, as one evaluates the charitable giving options available to them, they should think about whether they want to make a restricted or unrestricted gift.

Unrestricted and restricted gifts

An “unrestricted” charitable gift refers to a gift made towards a charitable purpose that is free  from any restrictions or limitations imposed by the donor. Unrestricted funds can be used by the donee charity in any way so long as the use of the funds supports the general charitable purposes of the organization.

On the other hand, donors may opt to restrict how their donations are used by the donee charity. These types of gifts are referred to as “restricted” or “donor-restricted” charitable gifts. As the name suggests, a donor places restrictions, conditions, directions or other limitations on their gift which constrains the use of the funds to a particular purpose, program, or project. In essence, a restricted gift can only be used for the specific charitable purpose to which it is devoted. Thus, restricted gifts have the effect of fettering the charity’s discretion in deciding where the donated funds will be allocated.

This article provides a more detailed comparison of unrestricted and restricted gifts: http://www.carters.ca/pub/article/charity/2006/tsc0421.pdf.

Charities have tended to prefer unrestricted gifts since their flexibility allows the charity to apply the funds wherever they are most needed. However, charitable organizations are increasingly recognizing that prospective donors may want a greater say in their charitable giving and might be inclined to give more if they have some certainty as to exactly how their gift will be spent. Restricted gifts can therefore be a useful tool to achieve one’s personal philanthropic goals, as well as to increase overall charitable giving.

Making a restricted gift

There are many ways in which a donor-restricted charitable gift can go awry, such as where:

  • the precise restrictions imposed on the gift are ambiguous and the charity consequently administers the funds in a way the donor did not actually intend;
  • the donor has given money to a very specific program or project within a charity which is not in need of funding or has been discontinued, and the surplus funds cannot be used for any other purpose; and
  • the charity amalgamates with another organization, or dissolves altogether, and transfers its remaining assets (including the restricted funds) to another charity that has a sufficiently different charitable purpose such that the organization can no longer give effect to the gift’s designated purpose.

In light of the above, there are certain precautions that a prospective donor should consider taking to ensure optimum impact of their restricted charitable gift.

A donor should refer to a charity’s gift acceptance policy for guidance on what types of restricted gifts a donor can give to the charity. In particular, a gift acceptance policy will usually prescribe what purposes or uses a donor can restrict their funds to. Gift acceptance policies may also specify what language will be accepted to confirm the donor’s charitable intent and what procedure will be followed when the donor’s charitable intent is unclear or cannot be carried out. For larger gifts, it is also advisable to meet with a representative from the potential donee charity to determine whether the organization’s gift acceptance policy coincides with the donor’s specific philanthropic goals.

Donation agreements and testamentary documents can also be drafted to contemplate scenarios in which the designated purpose of a restricted gift cannot be brought to fruition. Specifically, donors may want to consider adding to these documents a contingency that permits their gift to be used for alternate charitable purposes, or permits the donee charity to vary the restriction to a use that most closely corresponds with the donor’s original charitable intent.

Thanks for reading and happy holidays!

Arielle Di Iulio

 

[1] Everything you need to know about Canada’s charities and nonprofits (August 20, 2018), online: Imagine Canada <https://www.imaginecanada.ca/en/360/sector-stats>

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