The final Brown Bag Lunch meeting for the 2024-2025 term was held on June 18, 2024. As usual, participants raised interesting discussion topics and generously shared their thoughts with other attendees.
The first subject raised by a BBLer related to planning methods when dealing with registered plans and a disabled beneficiary where there is a need for flexibility in the event of a surviving spouse. Attendees made some suggestions about lifetime benefit trusts and annuities purchased by those trusts, Henson Trusts, and how to avoid losing a rollover of an RRSP. One consideration raised by the participant who initially raised this question was whether it may be more practical and efficient to have the registered plan be paid into the estate and make the allocations thereafter, noting that the cost of setting up some of the alternate arrangements discussed may be the same or more than the estate administration tax payable.
Next up an attendee asked for other participants’ thoughts on a claim by one child against his sibling in relation to wrongdoing as attorney for personal care for their deceased father. The child was upset about being kept away from their father and not having a chance to say goodbye before he passed away. One BBLer raised that there would have been remedies available to the child if the father was still alive, such as removal of the sibling as attorney for personal care, but that it may be difficult to establish that the sibling should pay punitive damages, and the cost of seeking those damages may outweigh whatever is ultimately achieved.
The following topic was raised by a BBLer dealing with an international student having passed away in Ontario, without a Will. The deceased had only a small estate here, but a large estate in another country where estate law is much different and would not result in any kind of probate certificate. Several attendees shared their advice that, unfortunately, the most simple and cost-effective option would likely be walking away from the assets in Ontario. In this case the only asset was a small bank account, so a couple of participants suggested trying to work with the bank to spend the money on legitimate estate expenses such as funeral costs, or amounts owing on death such as credit card bills.
The next matter concerned the ability to transfer ownership of an RDSP upon the death of a parent of a disabled child. In the situation discussed at the BBL, on her death a mother had attempted to transfer an RDSP for the benefit of her disabled child, to her niece. The Public Guardian and Trustee was taking the position that they should assume responsibility for the disabled child and was taking steps to assume control of the RDSP. One BBLer noted that the RDSP belongs to the disabled child, and that the parent would just be the holder of the account. Typically financial institutions will allow a parent to continue as holder for an RDSP that was set up for a minor child, even after the child is an adult, without a guardianship appointment. However, the BBL’er shared that when the parent dies that arrangement will usually come to an end and only a legally appointed guardian can be the new holder.
If you are interested in attending the Brown Bag Lunch meetings, please reach out to the moderator, Rebecca Kennedy, at rkennedy@agbllp.com.
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