Funeral Pre-Arrangement Process

1. Do I require a Will? 

 Answer; Everyone should have a Will that clearly records your final wishes and clearly lists at least one Executor/Executrix and a spare in the event the first Executor cannot act. The Executor(s) should be a Canadian resident and be aware of your intentions to list them on your Will. 

2. Should I get a Lawyer to do my Will? 

 Answer; When a Will is drawn up by a lawyer, they have taken an Oath to ensure their client is in their right mind to execute the document and there is no influence from other third parties. If an estate is complicated or there are concerns about heirs arguing about the estate… then we strongly suggest that the Will be completed by a Lawyer. The Lawyer will also advise on topics of estate planning, estate taxes, and how to avoid pitfalls and excess costs at the time of need.  

Answer; Yes, you can write your own Will in your own handwriting and date and sign it. It does not require to be witnessed because it is your own handwriting. If you have a complicated Estate or opportunity for heirs to disagree then this type of Will may not standup in court.

Answer; Yes, you can type your own Will and have two non related people witness your signature. The Will must be dated and signed by ALL signatories. If you have a complicated Estate or opportunity for heirs to disagree then this type of Will may not stand up in court.

Answer; These are two separate documents that allow you to list individual(s) that would handle your assets/property and your health in the event that you are unable to speak for yourself. They will make all decision for your personal finances and health. These documents should be completed by a Lawyer to ensure there is no influence and that you are in sound mind to appoint Powers of Attorney(s). A Lawyer would ensure that you clearly understand the powers that you are granting to others in the event that you are unable to make your own decisions.  

Answer; Yes you can… but many financial institutions will only accept Power of Attorney(s) for finance/property to be completed by a Lawyer.  

Answer: Probate is when the Will is presented to the courts and validated by the court as the Last Will and Testament of the Deceased. The value of the estate is presented to the court, and the Estate Administration Tax is calculated and payable within 90 days of application. In Ontario there is no tax on estates under $50 000.00. After which the fee is $15.00 on every $ 1000.00 over $ 50K. Legal fees would apply as well. Only assets in the deceased name would be calculated under the probate procedures. Assets such as property that are joint, or insurance policies with beneficiaries, joint bank accounts with spouses or common-law spouses, investments such as tax free saving accounts with beneficiaries listed, and joint vehicles would typically not be drawn into the probate process and simply pass on to the second joint owner without tax complications. Joint bank accounts with a parent and a third party like a child may not be considered joint by CRA and subject to probate calculations.

Answer; At its core, a trust is a legal arrangement where one party (the trustee) holds and manages assets on behalf of another party (the beneficiary). In Ontario, trusts are a fundamental part of estate planning, allowing individuals to transfer ownership of their assets to a trusted third party who will then manage and distribute those assets according to the terms of the trust.

Trusts can be used for a variety of purposes, from protecting assets and minimizing taxes to providing for loved ones and charitable causes. They offer a level of control and flexibility that can be difficult to achieve with a traditional will alone. There are many different types of trusts to choose from, each with its own unique benefits and considerations. Your Lawyer can explain these options.

Answer; A funeral prearrangement is information recorded by a funeral home of your final wishes and directions. Some families will prepay those wishes and enter a prepaid funeral contract so that those costs associated with the services required are covered and no further monies are required at the time of need. The invested is held with an insurance company or trust company in the client’s name. The funds are withdrawn at the time of need. The funds only come to the funeral home at the time of death.

11. What happens if the funeral provider closes? 

Answer; The Bereavement Authority of Ontario requires all funeral homes in the Province of Ontario to reach out to all prepaid clients to advise them of the closure of the funeral home and that the prepaid contract will no longer be in effect. All funeral homes are inspected by the BAO to ensure closing procedures are followed. 

Most funeral homes would provide a list of other funeral homes in proximity that would take over the prearrangement, and the investment firm would simply reassign the policy/investment to the new funeral home authorized by the client holder or POA. A second option is the investment is canceled completely, and the funds are returned to the purchaser including interest.