Tag: wills

14 Jan

Probate and Wills: What About Electronic Wills?

Kira Domratchev Estate & Trust, Estate Planning, Wills Tags: , , , , , , 0 Comments

In Ontario, a Will has to be in writing and typically an original is required for probate to be granted. With the increase of the technological presence in the everyday life of a typical Canadian, the question remains, should electronic Wills be admitted to probate?

Clare E. Burns and Leandra Appugliesi wrote an interesting paper on this topic titled “There’s an App for that: E-Wills in Ontario” that argued for the development of a legislative scheme in Ontario that admits the possibility of electronic Wills.

In discussing this question, the experience of other jurisdictions was considered, including the United States and Australia.

In 2005, the State of Tennessee was the first American state to recognize the validity of a Will executed with an e-signature. In that particular case, the deceased prepared his Will on his computer and asked two of his neighbours to serve as witnesses. A computer-generated signature was affixed to the Will. Almost ten years later, in 2013, the State of Ohio admitted to probate a Will that was written in the deceased’s own handwriting and signed by him, on a tablet computer.

It appears that electronic Wills are most probably valid in Florida, Texas and California and consistent with existing legislation, though the legislation does not specifically contemplate electronic Wills. The State of Nevada, on the other hand, has specifically enacted legislation which expressly allows for the validity of electronic Wills.

Australia, in comparison to the United States, has managed the question of electronic Wills by making use of the “substantial compliance” legislation that exists in each state, which gives the state courts the authority to dispense with the formal requirements for the execution of the Will. In comparison, the legislation in Ontario is one of “strict compliance” such that the formalities of a Will are required before a Certificate of Appointment is granted.

It appears that in Ontario, though a Court could theoretically admit an electronic Will (i.e. not an original copy) to probate, the formalities in accordance with the Succession Law Reform Act must be met, in any event. As a result, an electronic Will that does not meet any one of the formalities will almost certainly not be admitted to probate.

As various electronic gadgets are now being used more and more, Canadians are also using them to make testamentary documents. In keeping with the realities of contemporary life, it may be that legislative reform is needed.

In discussing the possibility of legislative reform, Ms. Burns and Ms. Appugliesi, also addressed the importance of various policy considerations. In doing so, they addressed the John J. Langbein analysis, which set out four main purposes to the formalities requirements in any Wills legislation:

  1. Evidentiary: the writing, signature and attestation requirements serve as evidence of testamentary intent in a reliable and permanent form;
  2. Channeling: the writing, signature and attestation requirements ease the administrative burden on the court system by setting out a uniform checklist of what is required before probate can be granted;
  3. Cautionary: the formalities are designed to impress the seriousness of the testamentary act upon the testator so as to ensure that he or she has fully thought through the result of executing the Will; and
  4. Protective: the formalities are designed to reduce the opportunity for fraud and undue influence by involving witnesses in the process.

As litigators, the “evidentiary” and the “protective” purposes are particularly important, as we often consider questions of testamentary intent, undue influence and fraud (albeit more rarely), amongst other things.

From that perspective, any legislative amendments to be made must address the various policy considerations and the implications of any such amendments on the legal system in Ontario.

Thanks for reading!

Kira Domratchev

Find this blog interesting? Please consider these other related posts:

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20 Dec

Notable Celebrity Testators

Doreen So Estate & Trust, Estate Planning, Executors and Trustees, Funerals, General Interest Tags: , , , , , 0 Comments

It is that time of the year when media outlets release their “top” or “most popular” lists, like the Time 100.

I came across a rather interesting and topical list the other day called “The Most Obnoxious Celebrity Wills” by Ranker.  This particular list features 24 celebrity Wills and I will excerpt some of the notable mentions here:

  • Napoleon Bonaparte’s Will was first on the list. Apparently, his Will included a direction for his head to be shaved and for his hair to be divided amongst his friends.

 

  • Harry Houdini asked his wife to hold an annual séance to contact his spirit.

 

  • Philip Seymour Hoffman wanted his son to be raised in three different cities: New York, Chicago, and San Francisco.

 

 

  • Charles Dickens gave directions for a particular dress code at his funeral.

 

  • Fred Baur, the person who designed the Pringles can, wanted to buried in a Pringles can.

Turns out testamentary freedom is whatever you want to make of it but the enforceability of provisions like these are another matter.

Thanks for reading and Happy Holidays!

Doreen So

11 Dec

Hull on Estates #561 – The Question of a Limitation Period in a Will Challenge

76admin Estate & Trust, Hull on Estates, Litigation, Podcasts Tags: , , , , , , 0 Comments

This week on Hull on Estates, Natalia Angelini and Kira Domratchev discuss the decision in Shannon v Hrabovsky, 2018 ONSC 6593, and the question of a limitation period in a Will challenge.

Should you have any questions, please email us at webmaster@hullandhull.com or leave a comment on our blog.

Click here for more information on Natalia Angelini.

Click here for more information on Kira Domratchev.

11 Dec

Preserving the Right to an Equalization of Net Family Properties

Nick Esterbauer Estate & Trust, Support After Death, Wills Tags: , , , , , , , , , , , , , 0 Comments

A recent decision of the Ontario Superior Court of Justice highlights the importance of preserving a surviving married spouse’s ability to elect for an equalization of net family properties within the six-month limitation period.

Upon death, a surviving married spouse in Ontario can elect for an equalization of net family properties under Sections 5 and 6 of the Family Law Act instead of taking under the predeceasing spouse’s will or, if the spouse has not left a will, on intestacy.  Subsections 6(10), 6(11), and 7(3)(c) of the Family Law Act provide that the surviving spouse must ordinarily make an election within six months of date of death and not after that date.  The Court may, however, extend the election deadline in the event that: (a) there are apparent grounds for relief; (b) relief is unavailable because of delay that has been incurred in good faith; and, (c) no person will suffer substantial prejudice by reason of the delay (subsection 2(8) of the Family Law Act).

Courts have reviewed the circumstances in which an extension is typically ordered.  The requirement that the delay be incurred in good faith has been interpreted as meaning that the party has acted honestly and with no ulterior motive (see, for example, Busch v Amos, 1994 CanLII 7454 (ONSC)).

In Mihalcin v Templeman, 2018 ONSC 5385, a surviving spouse had commenced two claims with respect to the estate of her late husband and an inter vivos gift made to a live-in caregiver.  However, neither of the proceedings had sought any relief relating to an equalization of net family properties, nor did the wife take any steps to make an election or to extend the time within which she was permitted to do so.  The Court reviewed whether the delay in making the election was in good faith.  The evidence regarding the reasons for the delay in electing for equalization were considered to be vague and insufficient to satisfy the evidentiary burden that the delay was incurred in good faith.  Accordingly, the applicant was not permitted to amend her pleadings to incorporate this relief.

Justice Bruce Fitzpatrick commented as follows with respect to the importance of limitation periods, generally (at para 48):

I am mindful of the general importance of limitation periods for the conduct of litigation. There is an obligation on parties to put forward all known legitimate claims within certain time limits. In this case, the time limit was relatively short. I think it cannot be readily ignored. The evidentiary record is not sufficient for me to say that justice requires me to exercise my discretion in favour of allowing [the applicant] to amend her claim so as to include a claim for equalization in all of the circumstances.

Where an equalization of net family properties may be sought at a later time (for example, pending the outcome of a will challenge or dependant’s support application), it is prudent to seek an extension well before the expiry of the six-month limitation period as courts may or may not assist a surviving spouse in seeking this relief down the road, if and when it may become advisable.

Thank you for reading,

Nick Esterbauer

 

Other blog entries/podcasts that may be of interest:

 

16 Nov

Limited Grants: Multiple Wills? Yes. One Will? No.

Paul Emile Trudelle Beneficiary Designations, Estate & Trust, Estate Planning, Trustees, Wills Tags: , , , 0 Comments

Multiple wills are an extensively used estate planning tool designed to reduce the amount of Estate Administration Tax payable. Essentially, the grant of a Certificate of Appointment is limited to the assets referred to in the will that is being probated, and Estate Administration Tax is only paid on the assets falling under the will that is being probated.

This estate planning strategy was tested and approved by the courts in Granovsky Estate v. Ontario.

However, the strategy was called into question in the recent decision of Milne Estate, which we have blogged and podcasted on.

Where there is only one will, can similar probate fee/administration tax savings be accomplished by applying for a limited grant? According to the Manitoba Court of Appeal decision of Pollock v. Manitoba, the answer is NO.

In Pollock, the deceased died leaving personal property, mainly shares in privately held corporations, having a value of about $12.5m, and real property having a value of $1m. Probate was required to deal with the real property, but not required to deal with the shares. If probate could be obtained in relation to just the real property and not the value of the shares, the estate would save $75,000 in probate fees. (Using current Estate Administration Tax rates in Ontario, the saving under such a scheme would be $187,500!)

The Manitoba legislation allowed the administration of an estate of a deceased person to be limited to certain assets “as the court thinks fit”. The Manitoba Court of Appeal considered a long line of cases dealing with the issue and concluded that the court must have a “strong reason” for making a limited grant, and stated “I do not regard the saving of probate fees as a sound reason for making a limited grant of probate. An applicant for a limited grant is, of course, entitled to take the least expensive way of administering an estate, but the chosen way must be one permitted by the legislation. The saving of probate fees is not, as I see it, a sufficiently strong reason to justify a limited grant. Nor is a limited grant a money-saving device contemplated by the legislation.”

In Ontario, the Rules of Civil Procedure specifically allow for limited grants. However, the grant is “limited to the assets referred to in the will”: Rule 74.04(1). Thus, in Ontario, if there is only one will, the result would be as in Pollock: even if probate of the will was needed in order to deal with only one asset, Estate Administration Tax would need to be paid on all assets of the estate.

Have a great weekend.
Paul Trudelle

09 Nov

Wills That Don’t Say Much

Paul Emile Trudelle Beneficiary Designations, Estate & Trust, Estate Planning, Power of Attorney, Trustees, Uncategorized, Wills Tags: , , 0 Comments

In Milne Estate (Re), 2018 ONSC 4174 (CanLII), the court refused to grant probate to a will where there was uncertainty as to the subject matter governed by the will. We blogged and podcasted on this case here and here.

Historically, probate has been granted to wills that have not disposed of property. For example:

  • In Brownrigg v. Pike (1882), 7 P.D. 61 (Eng. P.D.A.), the court probated a Will that did no more than appoint an executor;
  • In Jordan, Re (1868), L.R. 1 P.& D. 555 (P.D.), the court probated a will that only appointed an executor, even though the executor had renounced;
  • In Re Blow, 1977 CanLII 1274 (ON SC), the court stated that “In my view, it is not an essential element of a testamentary instrument that it have dispositive effect (although the fact that an instrument does not purport to dispose of property may be a factor to be taken into account in determining whether it was intended to have testamentary effect”. There, however, a precatory memorandum of advice to executors was not admitted to probate;
  • In Tatnall v. Hankey (1838), 2 Moo. P.C. 342, 12 E.R. 1036, a will that merely executed a power of appointment was entitled to probate;
  • In Barnes v. Vincent (1846) 5. Moo. P.C. 201, 13 E.R. 468, the Privy Council held that a grant of probate could be made without an inquiry into the validity of an exercise of the power of appointment, or even whether the alleged power of appointment in fact existed;
  • Section 12 of the Estates Act allows for probate to be granted even if the will does not purport to dispose of any property in Ontario.

For a further and more extensive commentary on the Milne decision, see Professor Oosterhoff’s article, “What is a Will and What is the Role of a Court of Probate?”.

Thank you for reading.
Paul Trudelle

04 Sep

Hull on Estates #554 – Golden Rule for Assessing Testamentary Capacity

76admin Hull on Estate and Succession Planning, Hull on Estates, Hull on Estates, Podcasts, PODCASTS / TRANSCRIBED, Show Notes Tags: , , , , , , 0 Comments

This week on Hull on Estates, Noah Weisberg and Doreen So discuss the UK and Hong Kong Golden Rule for assessing testamentary capacity.

Should you have any questions, please email us at webmaster@hullandhull.com or leave a comment on our blog.

Click here for more information on Noah Weisberg.

Click here for more information on Doreen So.

25 Jul

Does your estate plan need a touch up?

Suzana Popovic-Montag Beneficiary Designations, Estate & Trust, Estate Planning, Trustees, Uncategorized, Wills Tags: , , 0 Comments

If you have a will, you’re one of a minority of Canadians who have taken that crucial step in the estate planning process. A recent survey revealed that 51% of adult Canadians don’t have a will – and only 35% say that they have a will that’s up-to-date.

So, if you have one, you’re ahead of the game – and that’s great news. But what about the up-to-date part? In the same way a paint job on your home needs touching up after a few years, your will and estate plan needs a regular review as well. The issue with your estate plan is that, unlike the scratches and chips on your painted walls, the gaps and cracks that form aren’t obvious unless you take the time to review it.

Mind the estate planning gaps

Here are three common estate planning gaps that may have formed without you even realizing it:

  1. Location of assets and will aren’t known: A critical part of any estate plan is a list and location of your key assets (such as bank and investment accounts, insurance policies, and the original copy of your will). Yes, assets do indeed go missing. Don’t assume your family knows where to look, especially if any of your financial accounts have changed. Make a list and give it to those who will be handling your estate. And be sure to update the list if there are any account or asset changes.
  2. Family members haven’t read your will: At the 2013 Berkshire Hathaway annual general meeting, famed investor Warren Buffet turned estate planner when he was asked a question about his own estate.

“Your children are going to read the will some day … It’s crazy for them to read it after you’re dead for the first time. You’re not in a position to answer questions – unless the Ouija board really works.”

In many cases, family disputes don’t arise until after death, and the element of surprise often plays a big factor. So, make sure you communicate your estate plan to your family during your lifetime. Ouija boards are notoriously unreliable.

  1. Your life situation has changed: There are many life changes that should always be reviewed through the lens of your will and estate plan. For example, if one of your adult children becomes divorced, you may need to take steps to ensure that estate assets go to any grandchildren, and not your child’s ex-spouse. Or if you buy a winter getaway, you may need special provisions in your will, or a second will, for property you own outside of Canada.

Time for an estate planning touch up? There’s no better time than now.

Thanks for reading … Enjoy your day!
Suzana Popovic-Montag

06 Jul

Testamentary Capacity: Considering Contextual Factors

Rebecca Rauws Capacity, Wills Tags: , , , , , , , , , , 0 Comments

A recent decision from the Court of Appeal for Ontario, ­­­­Dujardin v Dujardin, 2018 ONCA 597, considers an appeal with respect to a Will challenge on the basis that the testator lacked testamentary capacity. The testator in this situation was a frequent consumer of alcohol. Despite what the trial judge called the testator’s “chronic alcoholism”, it seemed as though he was able to function normally on a day-to-day basis, including in business dealings relating to a family farm owned by the testator and his brother. Following the testator’s death, his wife disputed his Will, under which she received no benefit.

Recently, my colleagues, Noah Weisberg and Garrett Horrocks, discussed whether the classic test for testamentary capacity as set out in Banks v Goodfellow should be updated, and a new test as proposed in an article in the Canadian Bar Review, Vol 95 No. 1 (2017), Banks v Goodfellow (1870): Time to Update the Test for Testamentary Capacity.

The article opines that the context of the testator, including, for instance, family dynamics, should be incorporated explicitly into the test for testamentary capacity. This means that we would be asking the question: “can this particular person, with his or her particular mental abilities, in this particular situation, make this particular Will, at this particular time?”, rather than “can this testator make a Will?”

I thought the suggestions in the article were interesting when considering the facts of the Dujardin decision, and the findings of the trial judge. It seems as though the lower court took into account a number of contextual factors in applying the Banks v Goodfellow test, ultimately leading to a conclusion that the testator did possess the requisite testamentary capacity, a conclusion which was upheld by the Court of Appeal.

In particular, some of the interesting contextual factors included:

  • the history of the testator and his brother’s ownership and operation of the family farm, and the brothers’ consistent desires to leave their respective shares of the farm to each other upon their death;
  • prior mirror Wills executed by the brothers 13 years before the testator’s death, which reflected the same intention as the later Will that was being challenged (the testator’s prior will was revoked in 2000 when he married his wife); and
  • the testator’s relationship dynamic with his wife, with whom it appeared he was not close, and the provision that he made for her outside of his Will.

In particular, the Court of Appeal commented that “[g]enerally, the manner in which [the testator] disposed of his property made sense in the context of his life and familial relationships.”

Had the trial judge not considered the various contextual factors, it’s possible she could have arrived at a different conclusion. Subject to the medical evidence, given that the testator suffered from alcoholism, it may have been open to the court to conclude that this condition had, in fact, affected the testator’s cognition.

In any event, it is interesting to see a practical example of the ideas put forth in the article mentioned above, and to consider how the suggestions of the authors may come into play in real-world situations.

Thanks for reading,

Rebecca Rauws

 

You may enjoy these other blog posts:

21 Jun

The Great Irony: Testamentary Intent and Intestate Succession in Eissmann v Kunz

Garrett Horrocks Estate & Trust, Estate Planning, Executors and Trustees, Litigation, Wills Tags: , , , , 0 Comments

Testamentary freedom is a core tenet of estate planning in Ontario.  In general, testators are at liberty to set up their estate plan to include or exclude whomever they wish.  Where part or all of a testator’s estate plan fails as a result of an intestacy, Ontario’s Succession Law Reform Act (the “SLRA”) steps in to provide the parties who will benefit as a result.  Occasionally, the principles of testamentary freedom and intention and the laws of intestacy intersect in peculiar ways.  This intersection came to a head in the Eissmann v Kunz (2018 ONSC 3650) decision.

In Kunz, the testator, Siegfried Kunz, died leaving no fewer than four testamentary documents purporting to be wills, briefly summarized as follows:

  1. A will drawn in 1967, which divided Mr. Kunz’s estate between his wife and their daughter, Petra;

 

  1. A will drawn in 1982 in Mr. Kunz’s handwriting, which stated that the “beneficiary after [his] death is Petra”;

 

  1. A will drawn in 2000, again in Mr. Kunz’s handwriting, which purported to modify the 1967 will and listed a number of specific legacies to various beneficiaries. Mr. Kunz appears to have later written over the original bequests to increase the amount of each.  Petra was once again listed as the sole residuary beneficiary; and

 

  1. A will drawn in 2009, also in Mr. Kunz’s handwriting, which provided that Petra would “not receive a single Euro of out [the] Estate.” In the margin of the 2009 will, Mr. Kunz expressly indicated that the 2009 will was to be an “amendment” to the 2000 will.

The Court was first tasked with determining which will was to govern.  The Court concluded that the 2000 will was a valid holograph will, though noted that the subsequent handwritten amendments were of no force and effect as they did not comply with the formal requirements for valid alterations under the SLRA.  The Court concluded that the 2009 will operated instead as a codicil to the 2000 will as it did not dispose of any property on its face and, therefore, could not function as a standalone will.

The interplay between the 2000 will and the 2009 codicil is such that a conflict arose with respect to the disposition of the residue of Mr. Kunz’s estate.  The 2000 will names Petra as the sole residuary beneficiary.  The 2009 will revokes Petra’s interest entirely.  The 2009 codicil therefore created a partial intestacy with respect to the residue of Mr. Kunz’s estate, and the Court looked to the SLRA to determine who would inherit.

The hierarchy of beneficiaries on an intestacy is set out in Part II of the SLRA.  Mr. Kunz died leaving no surviving spouse, and so the next intestate beneficiaries were to be his children, that is, Petra.  In an ironic twist of fate, the Court concluded that Petra was solely entitled to all of the residue of Mr. Kunz’s estate, notwithstanding that he had intended to expressly disinherit her under the 2009 codicil.  The Court declined to give effect to Mr. Kunz’s apparent intention to exclude Petra.

Simple estate planning steps, such as the appointment of an alternate beneficiary under the 2009 will, could have prevented this great irony.  Ensure the effects of your testamentary dispositions are properly understood by taking time to review your will with a lawyer.

Thanks for reading.

Garrett Horrocks

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