B)semiannually. The trust company now wants the 4 children to sign a fee agreement for both executor fees and fees to administer the ongoing trust. Surrender charges may cause a reduction to all of the following EXCEPT, You are meeting with a client and the discussion turns to life insurance. C)total payments made by the evaluation date. No, absolutely not. Legal description C)both are issued by life insurance companies The display collapses, and a dozen jars come tumbling down. To review your own beneficiaries,or better understand your life insurance options, talk to your advisor. A customer in his twenties, who is not risk averse, is in the market for life insurance. You have been depositing money into an account yearly based on the following investment amounts, rates and times, what is the value of that investment account at the end of that period? B)to 25% of the original face value. A)purchasing an extended term life policy This helps ensure that they can rely on your will as being the final version of your written instructions. And, they can only get this legal protection from approval of your will by the provincial probate court. D)Annual renewable term, Current IRS regulations permit an unlimited contribution to which of the following tax-deferred plans? as a vexatious litigant, in my case where the Toronto lawyer, and my sisters lied in court [many timesa miscarriage of Justice]I filed a claim at the Dept. I wanted to send this to my daughter by email. Suppose Walmart has announced plans to seek approval from the 5. If the first partner died and left the entire estate to the surviving partner, then probate can be avoided. Thats why its a good idea to consult a professional both when youre either: And expert advice aboutestate and financial planningcan help you not only leave your estate in good shape. Quebec does not charge probate fees. If you wrote your Will days before you died, but did not have the capacity to write that Will. Once for your spouses will, thus paying probate twice. D. Covenant against encumbrances, A bargain and sale deed contain how many express warranties, Which type of deed is used by a grantor whose interest in the real estate maybe unknown. This should work. But joint accounts with a right of survivorship, and financial accounts that already have beneficiary designations are not part of your estate. A document in which legal title to real property is transferred from one person to another is a: Which of the following parties is in the weakest position against a claim of title by a stranger? Encumbrances that run with the land, such as an easement are stated in the sale disclosure rather than the deed. Which of the following persons must sign a deed for it to be valid? Hi. - Cash values can fluctuate and may even fall to zero. Russia can produce 8 tons of paper or 4 million cars each year. Once the contract is annuitized, monthly payments to the customer are: When asked about annual renewable term insurance, you would reply that it has, A policy owner could surrender a whole life insurance policy and choose from all the following EXCEPT. Lets say you give a cash gift to someone while you owed money to the CRA. Did the company buy or sell treasury stock during the current year? (i.e. Does the company have any treasury stock? (c) Calculate the frequency of runs per inning by D)continue to receive monthly payments until the end of 10 years after payments commenced, In general, when describing the characteristics of equity index annuities and variable annuities, each of the following would be a true statement EXCEPT A. Benjamin Franklin coined the phrase. A)an increasing premium, increasing face amount, no cash value - have investment risk that is assumed by the investor. A valid deed must contain which of the following group of elements? C)renewable level term It is at this point that the courts can establish the true Last Will and Testament. D)only the EIA has a minimum guaranteed return. D. A recording stamp after closing, When a person dies testate, title to real property transfers to the, chap 7 instructor questions title records, Adv. For example, lawyers typically charge about $3,500 to obtain a grant of administration (or certificate of appointment). representative offer the planning board to bolster Walmarts case for Which covenant in the deed would be violated? C. $200,000 He has decided to convert his variable policy to a whole life policy. 35,500 & 10 \% & 2 \text { years } & ? The person that you are entrusting with your estate, to go through the probate process and administer your estate according to the instructions in your Will. The Holographic Will what is it and when should you use one? Why? C)weekly. The trust will be based on 1 or 2 mutual funds so the ongoing investment management decisions and associated fees will be done my the fund manager(s) and not the trust company. doing any calculations, based on your understanding of baseball, why might runs per inning True. True or false. C)taxed as capital gain. How can I avoid doubling my probate costs? Which of the following types of insurance will give him the greatest amount of coverage for the lowest initial premium? Hi Bertha, thank you for the comment. Then the courts must appoint an estate administrator and the costs will be similar to probate (3-7% of the total value of the estate). Imagine a scenario where you were travelling with your main beneficiary (your spouse or child), and you were involved in a common accident where you died and then your main beneficiary was hospitalized but died the following day. A)monthly. A)to 50% of the original face value. In these later cases, fees are applicable - they're generally more than $1,000. How? Named grantee, competent grantor, delivery, grantor's signature. Marianne has a fixed premium variable life policy in which the separate account has been performing extremely well, and the face value has been increasing as a result of the investment performance. The person you have named shows their ID and they request the contents of the bank account. If you are transferring assets from your father to somebody else and they are not jointly held assets, then as Executors you will probably need a Grant of Probate and this is issued through the probate courts. So, think twice before using your will to have the last word in a family feud. A quitclaim deed may be used to accomplish all of the following except: constitutes constructive (legal) notice of ownership. A)the flexible premium policy because earnings of the contract directly affect the face value of the policy and earnings can never be negative. A. If you own it, it is part of your estate. Probate fees (or Estate Administration Tax in Ontario) and income tax are not the same thing. D. Prove or confirm the validity of a will, B. d. base line., Six acres of . True or false. C)when the cash value is sufficient, no premium payment is required. Thats the big upside to probate. B. Escheat Except, the house has been left to me with one stipulation, her life companion is allowed to live there still as long as he can pay all the expenses. Hi Gordon, you can just copy and paste the url of the article. D. $80,000 At LegalWills.ca our Wills include a very important survivorship clause. Recital a consideration d. To confirm that the . If there is no Will, then immediately after you have died, there is nobody appointed to take charge, to secure assets and to initiate the probate process. Its very daunting. A court or notary must validate by the probate procedure handwritten wills and wills made in front of witnesses. D)401(k), Barb funds an immediate annuity with $100,000. A. Which of the following statements regarding non-qualified annuities is CORRECT? B)an increasing premium, level face amount, no cash value Round to the nearest cent. One of the functions of probate is to determine the precise assets of the deceased person true or false, Many states have laws establishing a transfer tax that must be paid on conveyances of real estate. D)the scheduled premium policy because earnings do not affect the contract's face amount. This is a really difficult situation. Which of the following statements is true concerning a general warranty deed? Can I get a letter of probate in AB at the AB rate? people who created the documents we now read as primary sources: intended to be read by educated clergy. Allows a family member to take over a person's financial affairs Imagine if your executor contacts one of these institutions with a non-probated will in hand: Your executor then asks them to hand over your money or register a transfer of property title. Catherine passes away. Do you only want joint title on an asset now so your estate can avoid probate costs later? True or false. Give your reasons. Martin. $3.64 million C)the liquidation value of a variable annuity They are allowed to give up to $14,000 per year to as many individuals as they would like without having anyone having to pay any taxes. However, recently the separate account performance has been negative. But writing a Will does make the process easier. Knowing approximately when a document was created is important for: the geographical features mentioned in the document. Deeds that limit the liability of the grantors to their own acts and all persons claiming by, through and under them are known as: Which of the following deeds offers the LEAST protection to the grantee? Because theres no money to cover the cost.). His four-year-old daughter Jenny is seated in the shopping cart. It typically takes about 3 months for an application for probate to be seen by the courts, the whole probate process can take anything up to a year. (d) Perform the chi-square goodness-of-fit test and obtain D. Visiting a neighborhood with a co-worker could make you feel more comfortable. Refer to the previous problem. We offer this acknowledgment as a stepping stone towards honouring the original occupants, as a testimony to the oppression faced by Indigenous peoples, and our commitment to Indigenous communities and employees of Sun Life. C)Ordinary income taxation on the earnings withdrawn until reaching the owner's cost basis. B)transferring the policy to another person And your most recent Will disinherited your entire family and left your estate to your caregiver, then theres a good chance that your Will is going to be contested or challenged. B)$125,350 The deed is made to a fictitious grantee. A. B. The buyer should keep the original recorded deed because: As far as its validity between grantor and grantee is concerned, a deed that is not dated, acknowledged or recorded is: The grantor delivers a signed deed to her attorney, but the grantees name is omitted. Without it, heres what could happen: If you or your spouse died, your assets would go through probate twice: To avoid that, wills with a common disaster clause can help. The grantor must deliver the deed to the grantee personally, True or false? S signs a deed of her property to P and delivers it to a neutral escrow company with irrevocable instructions to deliver it to P on S's death. D)purchasing a reduced coverage whole life polic. Probate fees are generally charged on a sliding scale, some Provinces charge based on bands of estate value, others on a sliding percentage. D)Quoting the price using an exclusive buyer that handles all the firm's life settlements. They can resolve possible confusion between multiple documents, and deal with any concerns regarding the legitimacy of a document. It is also during the probate process that a Will can be challenged. It doesnt really matter where you live, its where the estate is located. At which point in a real estate transaction does legal title to real property pass? Does the company pay dividends? b. benchmark. This is the official body that grants probate approval. This allows couples to exempt $10.9 million from any taxes. Learn more about, RRSP: Registered Retirement Savings Plan overview, Registered education savings plan (RESP) overview, FHSA: Tax-Free First Home Savings Account, FHSA: Tax-Free First Home Savings Account overview. A)ability to adjust the amount of premium payments. d. shifts in unemployment primarily determine changes in the price level. Provides an individual with steady income while he/she is still alive So the bank gives the contents of the bank account to the Executor. Theres some truth to that. true or false, A person who receives a real property through a testamentary transfer is called a devisee. B) to determine the exact assets of the deceased person. Adverse Thanks so much for the detailed information. Even longer if there are challenges to the Will. Sometimes, the cost of probate can be much lower than the cost of avoiding it. It is therefore important to understand what is part of your estate, and what is not. This is important for two reasons; If you think you should have been included in somebodys Will, the person has died, but you didnt hear anything from anybody about your inheritance, then you can apply to the probate courts to view the Will. So, what happens when you mix death and taxes together? C. Covenant of seisin Permanent Life Insurance: Whats the Difference? 12. B)a minimum cash value Choosing to not write a Will is not a strategy for avoiding probate. 9 & & & \\ In a deed executed under a court order, the full amount of consideration is stated in the deed. D. Words of conveyance, "I do hereby convey to my nearest relative all of my interest in the property called 123 Main St., Bismarck, ND to have and to hold in consideration of receipt of the amount of $10 and other good and valuable consideration. Study with Quizlet and memorize flashcards containing terms like All of these are ways to express a legal description EXCEPT a. lot and block. A)receive a death benefit equal to the initial investment minus payments made to Barb E. $0, Here's a final question about Catherine and Cliff. You can buy some of our insurance products online. When asked about annual renewable term insurance, you would reply that it has If you were common law, and your partner died without a Will, you have very little claim on an estate unless you can show that you were financially dependent. But this also has implications for your own Will. What tax must the seller pay if the property sells for $329,650? Look for your provinces probate court, or Surrogate Court, in some places. The gifts are said to be "excluded" from taxation. A widowed customer with no children has a portfolio invested in mutual funds valued at $250,000. In fact, probate fees arent deductible by the estate for income tax purposes. If you are transferring the house from your fathers name to your name, there would probably be land transfer tax to pay. B. In order to establish title by the adverse possession, there must be proof of an exclusive, non permissive use that is ONCHA- open, notorious, continuous, hostile, and adverse to the true owner's interest- for the statutorily prescribed period. How might a Walmart representative respond to the negative criti- A private individual could acquire fee title by all of the following EXCEPT: A property is sold at an execution sale by way of a sheriffs deed. Theyre not likely to take a risk by assuming your non-probated will is valid. There is certainly some paperwork to get through, but the process does not necessarily require legal training. D - Because of the limited secondary market for life settlements, any firm that engages in these transactions should obtain several bids to ensure the customer receives a fair price for her policy. Hi Lloyd, no, the estate would be probated in Saskatchewan. C)avoiding probate upon the death of the investor Probate is a complex topic. In such cases, its smart to insert a common disaster clause in your will. Which of the following statements regarding a bargain and sale deed is true? What is meant by the term generally accepted accounting principles? d. Which of these features are common to both variable annuities and scheduled premium variable life insurance? If that Will is overruled by the courts, your previous Will may be recognized as your most recent Last Will and Testament. B)8.5% per premium payment. of Justice on Bay st., in April 9th., 2018 complete with a Factum of evidenceand they did not even respond. It would be CORRECT to state that variable annuities A deed may be used to convey title to a person with an assumed name. A)$117,829 They simply dont know whether a document has been challenged, or revoked, or superseded by another document. C. To determine the exact estate of the deceased person Probate fees (estate administration tax) in Ontario for an estate of $5,200 would be $30. 9. A client who purchased a variable life insurance policy 15 months ago has suffered a stroke. Without probate, your executor can hit a wall. Its a best practice to review your beneficiaries with your advisor annually to help avoid these common mistakes. Id like to know which forms to fill out, as there seem to be so many. C)Straight life. How does probate affect joint accounts or assets? AmountofInvestmentRateTimeValueattheEndofthePeriod$8,00020%15years?12,00015%10years?15,50012%5years?35,50010%2years?\begin{array}{|cccc|} Among the reasons to consider investing in a variable annuity would be all of the following EXCEPT Hello Tim To be valid, the deed must contain which of the following? Your Executor then has to distribute the assets according to the instructions in your Will. The index had a return of + 20% in the first year, - 5% the second year, and +10% the third year. my sister and i are joint executors of our fathers will we are also the beneficiaries. If so, how much? In the 2002 World Series, a total of 85 runs were scored. Which of the following statements is true? To provide evidence of his signature was genuine he executed a declaration before a notary this decoration is known as an, Probate is a formal judicial process that does all of the following except Lets assume were talking about your own will: Each province has its own rules. Anadvisorcan help or connect you with someone who specializes in estate planning. What if they die simultaneously but have an estate of $20 million, not $10 million. planning commission of a small town to build a new store. 4 & & & \\ D)monthly. The investor's current value is approximately B)the policy is guaranteed never to lapse. Who, if anyone, was at fault in this case? Many people believe that assets jointly held by two people dont need to go through probate if one were to die. Other Quizlet sets. To confirm that the will is valid You have a 37-year-old client whose wife has just given birth to triplets. Within your Will you can create a distribution plan for your estate, perhaps including charitable bequests, or a trust for the care of your pet. A person's net worth at the time of their death is known as: If you die without a valid will, this is known as being: The court-supervised process of settling an estate, including providing an opportunity for creditors to present their claims, is called: A legal document that amends a will is called a(an): Think of an estate (or any other financial asset) that needs to be held and managed by someone. Writing a Will in Canada takes about 20 minutes using a service like the one at LegalWills.ca and costs just $39.95. Hello \\ His main worry is that what looks like a generous death benefit today may not be sufficient for a beneficiary 40 or 50 years from now. The grantees signature \text { Amount of } \\ The person who performs these functions on behalf of someone else is known as a: A trust that, once set up, cannot be changed or underdone by the grantor is called: Imagine a rich, single woman named Amelia is flying her private jet on New Year's Eve 2017. But check the wording of your account agreement, to confirm. Your Executor would take your Will to a probate court and submit that document for probate. It has no covenants, but does have an implication that the grantor has good title. All rights reserved. True or false? If so, how much per share? Its best to name a secondary or contingent beneficiary as well. D)a fixed premium, reducing face amount, little cash value. What if you dont have a will? a. inflation is a price that might have to be paid to achieve lower unemployment. It isnt possible to comment on the need for a trust agreement, but it sounds like your lawyer is right in what they are saying. We have seen too often Executors and trustees taking advantage of this percentage of the estate arrangement. - Universal variable life insurance typically provides a higher death benefit than variable life insurance. Remember, this is the person responsible for carrying out the terms of your will, paying your debts, working through family disputes, etc. C)suitable because it provides tax deferral features. Once the courts have accepted the Will, and accepted the appointment of your Executor, then your Executor will be given a Grant of Administration. A modification to the original will is called, All of these are reasons for probate except I have gotten three distinctly different stories on what probate is, and how much it will cost me etc from a lawyer, the banks, and investors. Walmart is one of the largest corporations in the world, and it has B)only the variable annuity is considered a security That means that if one partner dies: This scenario can make a lot of sense, both now and after one of you dies. D)basically, no limit on the amount that can be contributed. C)to the original face value. Of the following, which statute or act creates the need for a deed to be in writing? Thanks so much. \text { of the Period } A homeowner signed a deed transferring ownership of his house to a friend. Sweden can produce 25 tons of paper or 5 million cars each year. What would be a reasonable percentage range for such a fee? If your child splits up with a spouse, their ex might claim a share of your money. This property was not encumbered during the time the current owner owned it, except as noted in this deed. D)offer a way to accumulate funds on a tax-deferred basis, Unit 4: Session 7: Retirement Plans and Educa, Fundamentals of Financial Management, Concise Edition. D)Joint and 100% survivor. See the assets are distributed correctly for single person only Its possible. Talk to your lawyer about the costs of creating a trust. Why does an executor have to apply for probate? B)number of accumulation units owned multiplied by the number of payments made into the account. We cannot give you legal advice on this blog, but we can give you some general comments based on our opinion. C. Irrevocable Charitable Remainder Trust. B)the cash value of a variable life insurance policy In order to establish title by the adverse possession, there must be proof of an exclusive, non permissive use that is ONCHA- open, notorious, continuous, hostile, and adverse to the true owner's interest . Which of the following is an essential element of a valid deed? B)annually. Thank you, Peter. a p-value using Excels function =CHIDIST(test statistic,deg_freedom). C. Consideration In a scheduled premium variable life insurance policy, all of the following are guaranteed EXCEPT True or false, When an estate is probated, the court usually select an executor to distribute the assets to the heirs, The grantor is conveying an interest that is less then the simple absolute.This explanation of the intent of the ownership will be found in the. A)A single premium deferred annuity is a lump sum investment, with payment of benefits deferred until the annuitant elects to receive them. 15,500 & 12 \% & 5 \text { years } & ? Talk to your advisor or find one near you - there is no cost to talk to an advisor. It allows for ones estate to pay the EAT only on assets that require probate. B. B)A 10% penalty plus the payment of ordinary income tax on funds withdrawn in excess of the owner's basis. \\ B)SEP-IRA Words of conveyance To be admissible to record in the appropriate public record office, a deed must be: Following the execution of a sales contract, a deed usually is executed. C)taking the cash value What is the taxable consequence of this withdrawal to your client? You can also appoint an Executor. B. Paying for music downloads. 11. im really stuck now, and am looking for HELP. D)REIT. Instead of using a probated will to distribute all your money, you can give some cash gifts while youre alive. Probate: A probate is the legal process in which a will is reviewed to determine whether it is valid and authentic. Consider these two examples: And, what if you dont document that the joint owner must get the proceeds of the account for their own use after your death? So life insurance policies, or registered savings vehicles like RRSPs or TFSA are not part of your estate, if they have beneficiaries named. Keep in mind that, depending on the terms of the trust, there is a good chance that if all 4 children agree, you can have the trustee replaced, so you do have some leverage in working through these negotiations.