Tag: promissory notes

11 Sep

To Forgive and Forget, or Gone But Not Forgotten?

Paul Emile Trudelle Estate Planning Tags: , , , 0 Comments

A recent decision of the Court of Appeal illustrates the importance of documenting intentions with respect to inter-familial loans. It also addresses the importance of solicitors’ evidence in establishing the wishes and intentions of a testator.

The case, Middleton Estate v. Middleton, 2020 ONCA 552 (CanLII), involves a promissory note given by the deceased’s daughter to the deceased. The daughter was borrowing $142,000 to buy an interest in a cottage. A promissory note was signed by the daughter on July 16, 2014. Prior to signing, the note was reviewed by the deceased’s lawyer. The daughter discussed the note with the deceased and added a clause stating that the loan was to be forgiven upon the deceased’s death. The deceased’s lawyer reviewed this revision and advised against it. The deceased took the forgiveness term out of the promissory note, and the daughter signed it.

Following the deceased’s death, the daughter produced a second promissory note dated July 22, 2014. This promissory note provided that the loan was to be forgiven upon the deceased’s death. The daughter gave evidence that she discussed the loan with the deceased and the deceased had originally wanted to put a forgiveness clause in her will, but after having second thoughts, decided to have the forgiveness clause put into the second promissory note.

In rejecting the validity of the second promissory note, the lower court found that the deceased relied on the first promissory note only when advancing the funds. The second note was never discussed with her lawyer after the first note was signed. The deceased then went to another lawyer to discuss her estate plan. This second lawyer was given a copy of the first promissory note by the deceased, and there was no mention of the second promissory note.

Thus, while the second promissory note was signed by the daughter, there was insufficient evidence to convince the court that the deceased had accepted those terms.

Thank you for reading.

Paul Trudelle

 

17 Jun

The Capital Account – Hull on Estate and Succession Planning #117

Hull & Hull LLP Hull on Estate and Succession Planning, Hull on Estate and Succession Planning, Podcasts, PODCASTS / TRANSCRIBED, Show Notes Tags: , , , , , , , , , , , , , , , , , , , 0 Comments

Listen to The Capital Account

This week on Hull on Estate and Succession Planning, Ian and Suzana talk about taking capital out of an account and what to consider along the way.

Comments? Send us an email at hullandhull@gmail.com, call us on the comment line at 206-457-1985, or leave us a comment on the Hull on Estate and Succession Planning blog.

READ MORE

17 Jul

Demand Promissory Notes and the Estate – Hull on Estates Podcast #68

Hull & Hull LLP Hull on Estates, Hull on Estates, Podcasts, PODCASTS / TRANSCRIBED Tags: , , , , , , , 0 Comments

Listen to "Demand Promissory Notes and the Estate"

Read the transcribed version of "Demand Promissory Notes and the Estate"

Craig and Bianca discuss demand promissory notes and the recent decision of Hare v. Hare [2007] 83. O.R. (3d) 766. The Hare decision specifically deals with the limitation periods applicable to the enforcement of a demand promissory note.

Craig and Bianca also discuss demand promissory notes in the estate context, and the considerations parents should take into account when making demand loans to children.

Click "Continue Reading" for the transcribed version of this podcast.

READ MORE

SUBSCRIBE TO OUR BLOG

Enter your email address to subscribe to this blog and receive notifications of new posts by email.
 

CONNECT WITH US

TRY HULL E-STATE PLANNER SOFTWARE

Hull e-State Planner is a comprehensive estate planning software designed to make the estate planning process simple, efficient and client friendly.

Try it here!

CATEGORIES

ARCHIVES

TWITTER WIDGET