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Nov 22
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3 Steps to Take Right Now on Your Real Estate Purchase

By Estates

What Every Property Buyer Needs to Know After Signing the Offer to Purchase

Congratulations! You’ve signed your offer to purchase a property—a huge milestone in your real estate journey. But now the clock is ticking. From securing fire insurance to ensuring your lawyer has the necessary documentation, every step is time-sensitive. Let’s break down the essential steps you need to take to ensure your real estate purchase proceeds smoothly.

1. Secure Fire Insurance Immediately

Fire insurance isn’t just a good idea—it’s a legal requirement to close most property purchases. Lenders require proof of insurance before releasing funds, and your lawyer cannot finalize the transaction without it.

Start by contacting your insurance broker or a reputable insurance company to arrange coverage for your new property. Be prepared with key details, such as the address, the type of property, and its value. Don’t wait until the last minute; arranging fire insurance early ensures you avoid delays in closing.

Pro Tip: If your new home is in an area prone to flooding or other risks, inquire about additional coverage to protect your investment.

2. Obtain Additional Funding Right Away

If part of your down payment or closing costs relies on external funding—such as grants, savings plans, or financial aid programs—you’ll need to act fast. Programs like the First-Time Home Buyer Incentive or funding from organizations like the Manitoba Metis Federation often have specific timelines for fund disbursement.

Start by gathering all required documents to prove your eligibility and submit your application as soon as possible. Some programs require additional processing time, which could cause delays if not addressed promptly.

Quick Reminder: Check whether your funding source requires you to use the funds exclusively for specific costs, such as the down payment, or whether you can apply it toward other expenses.

3. Contact Your Bank About Mortgage Instructions

If you’re financing the purchase with a mortgage, your lender must send your lawyer the official mortgage instructions at least a week before closing (and preferably two weeks). These instructions detail how much the lender will provide, the conditions for disbursement, and other legal requirements. They take time to review for potential issues, and to turn into signable documents so you’ll need to meet with your broker or financial institution right away and get them to send their instructions immediately after that.

Here’s how to ensure this process runs smoothly:

  • Inform Your Bank: Notify your lender immediately after signing the offer to purchase. Ask them to send the mortgage instructions directly to your lawyer without delay.
  • Stay in Communication: Follow up with your lender to confirm that the instructions have been sent.

The sooner your lawyer receives these documents, the faster they can prepare the necessary paperwork for closing.

 

Final Thoughts

Buying a property is an exciting yet complex process. Once you’ve signed the offer to purchase, every step you take can make or break your deal’s success. By securing fire insurance, arranging additional funding, coordinating with your lender and lawyer, and preparing your closing funds, you’ll ensure a smooth transition to homeownership.

The key is to act quickly and stay organized. If you’re unsure about any step, your lawyer is your best resource for guidance. With these steps in place, you’ll be well on your way to closing day with confidence.

Mar 07
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Executor Duties – A Guide: Navigating the Path with Care

By Estates

Introduction

Being named an executor of a will is both an honor and a substantial responsibility. It signifies trust and confidence in your ability to manage the final affairs of a loved one’s estate. However, it’s also a role that comes with a myriad of duties, requiring diligence, patience, and often, a delicate touch. In this essential guide, we delve into the core responsibilities of an executor, offering insights and advice to help you navigate the path with care, empathy, and efficiency.

Understanding Your Role As Executor

An executor, fundamentally, is tasked with carrying out the wishes of the deceased as laid out in their will. This role is pivotal in ensuring that assets are distributed according to the deceased’s wishes, debts are paid off, and all administrative tasks related to the estate are handled properly. The duties can be complex and time-consuming, but with the right approach, they can be managed effectively. Please keep in mind that this is by no means a complete guide to estate administration but is a good overview of some of the things that an executor might be expected to do.

A picture of a lighthouse leading in boats

1. Locating the Will and Important Documents

The first step in your journey as an executor is to locate the deceased’s will and any other critical documents, such as life insurance policies, property deeds, and financial statements. These documents form the foundation of your duties, guiding you through the process of estate administration.

2. Initiating the Probate Process

Probate is the legal process through which the will is validated, and the executor is formally recognized by the court. Initiating probate involves submitting the will to the local probate court and notifying all interested parties. Understanding your local probate laws is crucial, as they can vary significantly from one jurisdiction to another.

3. Managing the Estate’s Assets

As an executor, you’ll need to take stock of the estate’s assets, ensuring they’re secure and properly managed. This might involve everything from securing a property and its contents to managing bank accounts and investments. Your role is to preserve the value of the estate until it can be distributed to the beneficiaries.

4. Paying Debts and Taxes

Before the estate can be distributed, you’re responsible for settling any outstanding debts and taxes. This often requires opening an estate bank account to manage financial transactions. It’s essential to be thorough, as you may be personally liable for any discrepancies or errors.

5. Distributing the Assets

Once debts and taxes have been settled, you can proceed with distributing the estate’s assets according to the will’s instructions. This stage requires careful attention to detail and often, a great deal of patience, as it involves a lot of coordination and communication with beneficiaries.

6. Finalizing the Estate

The last step involves finalizing the estate, which includes preparing and filing final accounts with the probate court, showing how assets were managed and distributed. Once approved, you can formally close the estate, completing your duties as an executor.

Conclusion

The role of an executor is both significant and challenging, requiring a blend of meticulous attention to detail, financial acumen, and interpersonal skills. While the process can be daunting, it’s also a deeply meaningful way to honor the final wishes of someone important to you. Remember, it’s okay to seek professional advice from attorneys, accountants, and financial advisors to navigate the more complex aspects of estate administration. With the right approach and resources, you can fulfill your duties with confidence and compassion, ensuring a smooth and respectful conclusion to the estate’s affairs.

Feb 06
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Understanding a Henson Trust in Manitoba for People with Disabilities

By Committeeship, Estates, Power of Attorney, Wills

Navigating the complexities of estate planning and ensuring financial security for loved ones with disabilities can be a daunting task. In Manitoba, one effective tool that people look at for its flexibility and protective benefits is the Henson Trust. This post aims to shed light on Henson Trusts, detailing their setup, operation, and associated risks to help Manitobans make informed decisions and help you consider if seeing a Winnipeg lawyer for the Henson Trust is the right way to help you plan.

What is a Henson Trust?

A Henson Trust, named after the landmark legal case that established its framework, is a unique type of trust designed to benefit individuals with disabilities (in this case, the “beneficiary”). It is a discretionary trust, meaning that the trustee has full control over if, when, and how the trust’s assets are distributed to the beneficiary. The primary goal of a Henson Trust is to provide financial support to a person with disabilities without affecting their eligibility for government assistance programs, such as the EIA or Manitoba Housing. This is because the assets held in a Henson Trust are not considered part of the beneficiary’s assets.

Setting Up a Henson Trust

Establishing a Henson Trust in Manitoba requires careful planning and adherence to specific legal requirements. The process typically begins with consulting a lawyer experienced in estate planning and trusts. The settlor, who is the person creating the trust, must draft a trust deed or will that explicitly states the trust’s discretionary nature. This document should appoint a trustee or trustees, outline the trust’s terms, and specify the beneficiary or beneficiaries. Choosing a reliable and trustworthy trustee is crucial, as they will have significant control over the trust’s administration and the welfare of the beneficiary.

Operating a Henson Trust

Once a Henson Trust is in effect, its operation hinges on the discretion of the trustee. The key part of a Henson Trust is that no one can require that the trustee pay any of the money to the beneficiary – that is how it avoids being included in the beneficiary’s assets. The trustee is responsible for managing the trust’s assets, making investment decisions, and deciding on the distribution of funds to the beneficiary. They must act in the best interest of the beneficiary, taking into account the beneficiary’s needs, government benefit eligibility, and the trust’s long-term sustainability. Trustees have the flexibility to disburse funds for a wide range of expenses, including living costs, medical care, education, and leisure activities, ensuring the beneficiary’s quality of life is maintained or enhanced.

Risks Associated with Henson Trusts

While Henson Trusts offer numerous benefits, they are not without risks. One significant risk is the possibility of the trustee choosing not to disburse any funds, especially if they are also the residual beneficiary of the trust. This scenario can occur if the trustee, motivated by self-interest, decides to preserve the trust’s assets for themselves rather than using them for the beneficiary’s needs. To guard against this risk, it is essential to choose a trustee who is trustworthy and has the beneficiary’s best interests at heart. Additionally, you can appoint more than one trustee or a professional trust company to ensure checks and balances are in place.

In conclusion, Henson Trusts offer a valuable estate planning tool for families wishing to provide for loved ones with disabilities, ensuring their financial security without compromising their access to government assistance. However, the success of a Henson Trust lies in its careful setup, the integrity and diligence of the trustee(s), and the ongoing management of its assets. By understanding the benefits and potential risks, Manitobans can make informed decisions that align with their estate planning goals, ensuring peace of mind and the well-being of their loved ones.

Henson Trust meeting
Nov 15
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Important Items to Bring to Your Lawyer Appointment for Drafting a Will and Power of Attorney

By Estates, Wills
Wills consultation

Drafting a will and power of attorney (POA) are significant steps in managing your estate and ensuring your wishes are honored. When you’re preparing for an appointment with your lawyer to discuss these documents, it’s essential to come prepared. Here’s a good guide to help you make the most of your visit.

1. Identification and Basic Information

– Photo ID: Bring a government-issued photo ID such as a driver’s license or passport. This helps the lawyer verify your identity.
– Contact Information: Your address, phone number, and email are crucial for communication and official documentation.

 

2. Family Details and Beneficiary Information

– Spouse/Partner and Children’s Details: Names, birthdates, and social security numbers of your spouse and children (if applicable).
– Other Beneficiaries: Information about anyone else you wish to include in your will, like friends or charities.
– Guardian Designations: If you have minor children, consider who you would want as their guardian.

 

3. Financial Documentation

– Asset List: A detailed list of your assets, including real estate, bank accounts, investments, and valuable personal property.
– Debt Information: Details of any debts or liabilities, like mortgages or personal loans.
– Insurance Policies: Life insurance, disability insurance, and any other relevant policies.
– Retirement Accounts: Information on RRSPs, TFSAs, or other retirement plans.
– Business Ownership Documents: If you own a business, bring relevant documents like partnership agreements.

 

4. Legal Documents

– Existing Legal Documents: Previous wills or POAs, divorce decrees, prenuptial agreements, or any other relevant legal papers.
– Healthcare Directives: If you have existing healthcare directives, bring them for review.

 

5. Details for Power of Attorney

– POA Candidate Information: Names and contact details of the person or people you want to designate as your attorney-in-fact.
– Scope of Authority: Consider the powers you wish to grant, such as financial decisions, healthcare decisions, or both.
– Duration and Conditions: Decide when the POA should come into effect and any specific conditions or limitations.

 

6. Digital Assets

– List of Digital Assets: Include online bank accounts, social media accounts, digital currencies, and any other relevant digital assets.
– Access Information: Don’t bring your passwords, but be prepared to discuss how someone in charge of your affairs may be able to access your digital assets.

 

7. Personal Wishes and Instructions

– Specific Bequests: Instructions for specific items or sums of money to be left to certain individuals or organizations.
– Anything else that you would like the lawyer to discuss adding to your documents.

 

8. Questions and Concerns

– List of Questions: Prepare any questions or concerns you have regarding the will and POA process.

 

9. Open Mind and Readiness to Discuss Sensitive Topics

– Mental Preparation: Be ready to discuss sensitive topics like end-of-life wishes, family dynamics, and financial matters.

 Conclusion

Preparing a will and power of attorney is a thoughtful process that requires careful consideration. By bringing the necessary items and information to your lawyer appointment, you can ensure that your estate planning is comprehensive and aligns with your wishes. Remember, these documents are not just about distributing your assets; they’re about peace of mind and the security of knowing your affairs are in order, even in unforeseen circumstances.

This preparation not only facilitates a smoother process but also provides a clearer understanding of your estate, potentially revealing opportunities for financial planning and family discussions.

In summary, taking the time to gather these essential items and information before your appointment can make the process of drafting a will and power of attorney both efficient and effective, ultimately providing you and your loved ones with security and clarity for the future.

Sep 13
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8 Considerations When Making a Will For Your Blended Family (Including Mutual Wills)

By Estates, Wills

Preparation for a secure future is a fundamental responsibility towards your loved ones. It might appear daunting, especially in the case of blended families, but understanding the process can significantly reduce the burden. Here are eight crucial considerations for creating a will for your blended family, highlighting the importance of mutual wills:

1. Children’s Inheritance

Equal distribution is the foundation of harmony. A will ensures a fair inheritance amongst all your children, irrespective of whether they are part of your current or previous relationships. What is “fair” though is as individual as you are. You’re going to need to discuss that with your spouse or partner. Make sure that your discussions include topics like how an inheritance might work with step-children, as well as what happens if a step-parent outlives a biological parent. This can be the one of the more challenging topics, but it’s among the most important.

2. Providing for Your Spouse

The financial well-being of your spouse is another critical aspect. A well-structured will takes their future needs into consideration, ensuring sustenance and comfort even in your absence. It will also need to consider what happens depending on who goes first.

3. Guardianship of Minors

If there are minor children in your care, determine who’d be best suited to assume guardianship. Although this may be a difficult discussion, it is essential for the welfare of your children. Remember that, if your minor child has another living parent, that other parent will likely have the exclusive right to care for the children. While that’s not always the case, it’s something to consider.

4. Personal Possessions

Family heirlooms, sentimental gifts, or any item of personal significance requires careful consideration. Be explicit in your will to alleviate any unnecessary distress or disputes later.

5. Setting Up Trusts

Trusts are an excellent way to safeguard your children’s future financial well-being without overwhelming them with a significant amount at once—particularly beneficial for minor children or those not yet prepared for financial responsibility.

6. Considering a Mutual Will

A mutual will, sometimes called contractual wills, is a binding agreement between two people, typically spouses, to carry forward mutual promises even after one partner passes. This agreement’s serious nature obligates the survivor to uphold and respect the departed’s wishes, providing additional security for your family. Courts will usually uphold this type of will, if drafted correctly, even if the surviving spouse changes their will after the death of the other spouse. It can be hard to think that this might be an issue, but wills are about piece of mind and serious consideration should be given to exploring this as a possible option.

7. Open Communication

Maintaining transparency with your family about your will’s contents is vital. It not only eliminates confusion but also prevents potential disputes in the future. These discussions will absolutely involve your spouse or partner, but in many families discussing these issues with the (adult) children can help give clarity not only to them, but to you too.

8. Professional Legal Advice

Professional guidance could prove invaluable during this process. Legal advisors ensure each aspect of your will is addressed appropriately, helping you draft a comprehensive document that accurately reflects your wishes.

Creating this legacy for your blended family—through a well-planned will—does not have to be a challenging process. Remember, professional help is just a call away. Reach out to us at any time; we’re here to support you every step of the way.

Sep 07
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Choosing an Executor for Your Will: Top 5 Things to Consider

By Estates, Power of Attorney, Wills

Creating a will is a bit like planning a neighbourhood gathering — you’re figuring out who gets what (picture the potluck dishes) and ensuring things run smoothly. And just like you’ need a coordinator for the party, you need to pick an executor for your will.

Your executor is like the captain of your post-life team, steering your affairs in the direction you wish. So, let’s stroll together through the top 5 things to consider when choosing your own will executor.

1. Trustworthiness

Just like you wouldn’t hand your house keys to someone you don’t trust, you shouldn’t select an executor you don’t have faith in. After all, they’ll be taking care of distributing your assets according to your wishes. Make sure the person you select is known for their integrity and honesty.

2. Organizational Skills

Handling a will involves a lot of paperwork and deadlines. Your chosen executor should be someone who’s good with details, timelines, and, let’s face it, a bit of bureaucracy.

3. Communication Skills

You’d want someone who knows how to diplomatically deal with Uncle Bob arguing over your famous lemon pie recipe, right? Much in the same way, your executor should bravely and tactfully handle any family conflicts that might pop up.

4. Availability and Location

Consider choosing an executor who is relatively local to you. This is very much like choosing a neighbour to water your plants while you’re gone. Having someone close-by can make the process smoother and faster, since they’ll easily attend to necessary paperwork and meetings. If you’re considering someone who lives outside of Manitoba, talk to us about that – there may be considerations ranging from the practical to the expensive (from a tax standpoint) that we’ll want to talk about.

5. Professional Assistance

Lastly, know that your executor can hire professionals to help, like us, your friendly neighbourhood lawyers. Any fees for legal assistance come out of the estate, not your executor’s pocket.

 

Choosing an executor is a critical step in creating your will. It’s all about making sure someone you trust has got things under control, just like the trustworthy neighbour you’d leave a spare key with. Remember, at Wolseley Law, we’re here to help navigate these decisions with you. Come and chat with us about your options.

Sep 07
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Crafting a Will in Manitoba: A Step-by-Step Walkthrough

By Estates, Power of Attorney, Wills

We get it, the thought of sitting down to craft a will isn’t exactly a walk in the park. But when it comes to safeguarding the future of your loved ones and your hard-earned assets, it’s absolutely worth it.

Allow us to guide you through the steps to creating a will in Manitoba – we promise, it’s less complicated than you think!

Step 1: Get Started (Don’t worry, we’re here with you!)

First things first, take a deep breath. Understand that you’re taking a crucial step towards ensuring security for your loved ones. Now grab a pen, some paper, and let’s gather a list mentioning all your assets (like your house, car, savings, investments) and personal items of real or sentimental value (items of jewellery, art, or even your well-cared-for houseplants!). We’ll send you an intake form to start thinking about these things, if you’d like.

Step 2: Choose the Beneficiaries

Next, think about who you want to pass these assets onto. These folks are known as your beneficiaries. They can be anyone you wish – your kids, other family members, friends, even a good cause that you feel deeply about.

Step 3: Name Your Executor

Now, choose a trusty person to carry out the terms of your will. This is your executor, (kind of like that reliable friend you’d nominate to water your plants while you’re away). This should ideally be someone you trust, who’s organized and impartial. See our hints on choosing an executor, here.

Step 4: Guardianship Decisions

If you have children under 18, it’s crucial to think about who you’d like to take on guardianship duties should something happen to you. If you have kids this is likely the main reason you’re making a will, so this decision needs careful thought and plenty of discussions with potential guardians.

Step 5: Create the Will

Ready to get going? Great! We’ll meet with you to take instructions from you regarding what you might want in your will. We’ll have lots of questions for you, but if you’ve done a little light prep work we won’t be asking anything that you won’t already know the answer to. It’s a conversation, not a quiz!

Step 6: Sign and Witness

In order for a will to be legally valid in Canada, it must be signed in the presence of two adult witnesses, who aren’t beneficiaries or the spouse of a beneficiary. Typically that’s two people from our office who are there to make sure that the witnessing complies with the law around wills.

Step 7: Keep it Safe

Lastly, we’ll send you home with your will. Find a safe and secure place to store your will where your executor can access it when needed. Make sure to tell your executor where you’ve kept it. This is often just a secure spot in your house.

And voila! You’ve successfully crafted a will. Remember, setting up a solid will is all about making things as easy as possible for your family and friends – let us help make that process a little easier for you.

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