The OBA’s Brown Bag Lunch (BBL) on October 16, 2018, was met with much enthusiasm and lively discussions. OBA members from across the province actively participated in a variety of estates law topics. A summary is found below.
The BBL started off with a follow up discussion from September surrounding the decision in Milne Estate (Re), 2018 ONSC 4174. In response to the decision, members shared their views on the use of basket clauses and communicating with clients impacted by the decision. Now that the decision has been appealed to the Divisional Court, members also contemplated how it will be interpreted on appeal.
The second topic was the recent decision of Rivard v Morris, 2018 ONCA 181. At issue in this case was whether “legatees” are entitled to be paid interest by an executor for specific bequests they are entitled to, but yet to receive. Specifically, members narrowed their focus on the “rule of convenience” and the importance of keeping this in mind when advising clients. Members considered whether the interest paid to the legatee should be deductible to the estate and, if so, the obligation of the estate trustee to claim it on the T3 tax return.
From there, BBLers considered the impact of marriage on wills previously executed in jurisdictions outside of Ontario. The circumstances posed to members was that in some provinces such as British Columbia and Alberta, marriage does not revoke a will. This conflict of laws issue caught the attention of many seasoned practitioners.
Next, the discussion turned to border requirements for Canadian estate trustees sending money to beneficiaries located in the United States. This conversation started with a news headline from July 2018 where an executor mailed $500,000 in bank drafts to family members which were later seized by U.S. border officials. The preferred method for sending money to beneficiaries was considered.
Lastly, BBLers dove in to the hot topic of digital assets. In particular, the presence of a specific clause regarding digital assets being listed in a will and its potential value to an estate trustee were evaluated. Several members presented their thoughts on the effectiveness of such a clause and how it could be useful when liaising with various social media entities to gain access to a testator’s account.
All members of the Ontario Bar Association are encouraged to attend the next BBL on November 20, 2018 at 12:00 pm – we look forward to hearing from everyone then!
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