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Estate Planning in Ontario – Pet Trusts & Other Care for Your Pet 

an older couple sitting outside with the dog, representing how important pets are and how you should create a pet trust.

Disclaimer: This article is intended for the purpose of providing for your pets, including creating pet trusts. It is to be used only for the purposes of guidance. This article is not intended to be relied upon as the giving of legal advice. It does not purport to be exhaustive. 

Whether or not you call them your fur baby, our pets are more than animals for many of us. To many Canadians, they are beloved family members, providing companionship, joy, and comfort. 

Because their lifespans tend to be much shorter than ours, we assume we will outlive our pets. However, that is not necessarily true. So, just as you meticulously plan for the well-being of your loved ones in your estate plans, it’s crucial not to overlook your furry or feathered friends. 

If you are a pet owner, how can you include your pets in your estate plan? What are your options? That is what we will consider in this article. 

The Legal Landscape in Ontario: Pets as Property

Under Canadian law, including in Ontario, pets are considered property, and as such, they lack the legal capacity to own or inherit assets. This classification presents unique challenges when explicitly leaving money or property directly to your pets in your will. However, this doesn’t imply a lack of options for securing their future.

There are three basic ways to ensure your pets are cared for after you’re gone: 

  1. Designate a caretaker
  2. Designate an organization to act as a caretaker
  3. Set up a pet trust

Designating a Caretaker: Choosing Guardianship for Your Pet

Similar to appointing guardians for minors, identifying a trustworthy caregiver to care for the pets after you’re gone is crucial. Consider family members or close friends who share a bond with your pets and are both willing and capable of providing lifelong care. A heartfelt conversation with your chosen caretaker is essential to ensure they understand and accept this responsibility. While a primary caretaker is crucial, it’s wise to designate a backup in case your original caregiver is unable to care for your pet. 

Additionally, consider charitable organizations or shelters specialized in pet care. For instance, most Humane Societies offer a pet stewardship program, assuming custody and finding loving homes for pets after their owners pass away.

Financial Provisions: Ensuring the Financial Security of Your Pet

To alleviate financial concerns associated with pet care, consider you should leave an amount of money to your pet guardian in your will. This fund can cover expenses like veterinary care, grooming, food, and any unforeseen medical treatments your pet might require. 

How much should you leave for pet care? That depends. Consider how long your pet’s life is expected to be, what costs you are currently incurring and other factors. 

Incapacity Planning: Securing Care During Your Lifetime

As we have noted before, you need more than a will. What happens if you become incapacitated and can no longer care for your pet? Trusts and powers of attorney can be instrumental in addressing your pet’s care in case of your incapacity. While pets can’t inherit funds directly, a trust can designate funds for your pet’s care, with conditions tied to the designated caretaker ensuring proper care.

Setting up a Pet Trust: Ensuring the Future Care of Your Pets

While various trusts can be drafted, establishing a trust for pets demands precision to ensure its legality and enforceability. As the legal landscape surrounding trusts for pets continues to evolve, three fundamental rules are worth mentioning.

Beneficiary Enforcement and Legal Standing

One crucial element of any trust is that there must be a beneficiary or trustee who can enforce the terms of the trust. Practically and legally speaking, pets obviously lack the capacity to enforce a trust. 

Purpose and Charitable Intent 

Trusts must serve a clear purpose or have identifiable beneficiaries unless their purpose is deemed charitable. For instance, trusts designed for research and support surrounding a specific disease are considered charitable in Ontario. However, trusts created solely for pets might not meet the criteria for charitable purposes under the law.

Lawful Conditions and Public Policy

A trust can make gifts conditional on specific actions, provided these conditions are lawful and do not conflict with public policy. Creating a pet trust that adheres to these rules involves designating specific beneficiaries. As part of your trust, you can include instructions for the care of your pets. Funds from the trust are allocated for the explicit purpose of caretaking.

Termination Date

Additionally, each trust requires a termination date, signaling the final distribution of the trust fund. In the case of a pet trust, the termination typically coincides with the death of the last surviving pet. Any trust funds left are distributed per the terms outlined in your will. 

Creating an Estate Plan For Your Peace of Mind

Navigating the complexities of caring for every part of the family after you’re gone can be overwhelming. Seeking guidance from an experienced estate lawyer, such as the professionals at Beeksma Law, can streamline the process. An estate lawyer can help formalize legal arrangements, ensuring your directives concerning your pet’s care are documented, legally sound, and enforceable.

Incorporating your pets into your estate planning demonstrates a commitment to their well-being and happiness. Your furry friends hold a special place in your heart and deserve careful consideration in your plans for the future.

At Beeksma Law, our dedicated estate planning team understands the significance of including your pets in your estate plans. Contact us today for compassionate legal guidance to secure the future of your beloved pets.

Your guide to estate administration bonds

a judge reviewing estate documentation before asking for estate administration bonds

Disclaimer: This article on estate administration bonds is intended for the purpose of providing information only. It is to be used only for the purposes of guidance. This article is not intended to be relied upon as the giving of legal advice and does not purport to be exhaustive.

We have noted in other articles an estate trustee’s responsibilities. In this article, we will talk about one requirement that you may face when you probate an estate in Ontario. 

(If you are appointed as an estate trustee, you may be interested in this article about your responsibilities. If you are preparing your estate documentation, you may enjoy this article about how to select an estate trustee.)

What is an administration bond? 

An administration bond is a type of surety bond required in Ontario when someone becomes an estate trustee for a deceased person’s estate. Its purpose is to protect the beneficiaries and ensure that the estate trustee fulfills their duties properly. Generally, the bond is at least double the value of the assets of the deceased. 

When is an administration bond required? 

Ordering an administration bond is at the discretion of the courts, but a judge will typically require an administration bond in these scenarios: 

  • There is no will;  
  • There is a will, but an estate trustee was not named and one needs to be appointed; or 
  • A foreign estate trustee is appointed.

When referring to a “foreign estate trustee”, the courts will not only apply that definition to someone who lives outside of Canada. It can also be applied to estate trustees that live outside of the province. (Read below for how this can affect your decisions when selecting an estate trustee.)

The Estates Act sets out some situations where an administration bond is not required, including: 

  • In cases where the Government of Ontario or any Ministry, Provincial Commission, or Board established under legislative Acts submits an application to act as an estate trustee;
  • There is no will, but the surviving spouse is applying to be an estate trustee and the value of the estate is less than the preferential share and an affidavit sets out the estate’s debts; or 
  • It is a small estate (meaning a total value of less than $150,000) and none of the beneficiaries are minors or incapable (as defined by the Substitute Decisions Act, 1992). 

Waiving the requirement for an administration bond

Most people do not have easy access to the amount required by an administration bond, so you will want to apply for an order waiving the requirement for an administration bond. 

Previously, this was a simple matter that could be handled over the counter with the court registrar. However, as of July 2022, the procedure has changed. A full motion is now required, and it is more likely to require a hearing before a judge. This is a more involved (and more costly) procedure than before. 

If you are looking for an order to dispense with the bond requirement, you must convince the court that the protection that a bond provides to any creditors and beneficiaries is not required. 

Bond insurance 

In some cases, an application to waive an administration bond is unsuccessful, meaning the court will still require it. What are your options in that case? 

You can turn to insurance companies that offer bond insurance policies. From the court’s point of view, these insurance policies serve as the equivalent of a bond, eliminating the need to come up with the full cash amount. 

It is typically a straightforward application that resembles a credit check, where the insurance company assesses the applicant’s financial standing. There is a one-time premium that you must pay. However, this is considered a proper estate expense. Therefore, the estate trustee can be reimbursed once they receive a certificate of appointment. 

Choosing your executor 

Knowing that an administrative bond is more likely when your estate trustee lives outside of Ontario can impact who you appoint. It may make sense to select someone who lives locally rather than someone who is geographically distant or transient. For example, this might include a young adult child with an inclination for a nomadic lifestyle.

Navigating estate law with Beeksma Law 

At Beeksma Law, we know that estate law can be complex, especially when it comes to requirements like administration bonds. Our team of experienced estate lawyers is here to guide you through the probate process in Ontario with confidence and ease.

Whether you’re stepping into the role of an estate trustee or diligently preparing your estate documentation, we’ve got you covered. We offer comprehensive services tailored to your specific needs. This includes ensuring you understand the ins and outs of administration bonds and how they impact you and the beneficiaries. With our expertise, we’ll find the best solution to protect your interests and streamline the estate administration process.

Reach out to Beeksma Law today. Let us be your trusted partner in managing your estate matters – we’re ready to assist you every step of the way!

Case Study: Preparing estate documents for a young family

the back view of a young family who is going to prepare estate documentation

Disclaimer: This article on preparing estate documents is intended for the purpose of providing information only. It is to be used only for the purposes of guidance. This article is not intended to be relied upon as the giving of legal advice and does not purport to be exhaustive.

We have talked before about the importance of having a will and powers of attorney in place. But what does it look like to have them done? We turned to one of our recent clients to tell us about her experience working with our firm. 

Tell us about yourself

I am a 30-something-year-old married mother with one child. My husband and I have been married for quite a while, and up until recently, we did not have any estate planning documents. 

I had met Shayna in a networking group, and when we decided it was time for a will, we turned to the incredible team at Beeksma Law. 

What made me think about estate planning? 

Like many people, we had not spent much time thinking about our own mortality. Yes, anything could happen, but it was not at the top of our minds. A couple of things convinced us that it was time to document our wishes. 

First, we became parents, which changed everything for us. The question of what would happen to our son if something happened to both of us loomed over us. While we knew that our families would step in and care for him, what would that look like? Would he be receiving money at 18 that he is ill-equipped to handle? What if there were disagreements about who would be his guardian? 

Also, the pandemic taught us that anything is possible. Anything can happen at any time. We had fooled ourselves into thinking that we didn’t need to do this process because we were relatively young and healthy. However, we came to realize that that didn’t matter. 

While we considered a will kit, ultimately, we decided to work with Beeksma Law. Yes, it was more expensive, but I work with other types of templates in my line of work. They can be okay. However, they will usually not give you the same kind of quality that you get when you make an investment and work with an expert. 

What did you appreciate about the experience? 

I like to do my research, and when we approached Shayna and her team, I thought we had thought things through.  I was wrong! During our first meeting, we outlined a number of areas that had never even crossed my mind. We appreciated how thorough she was and that the documents that we prepared fully considered what happens after we are gone. 

We also appreciated being able to do our powers of attorney at the same time. During our conversations, we were helped to appreciate that a will only comes into effect when we die. What would happen if we were in a terrible accident? Who would handle our affairs? 

We appreciated Shayna’s patience with us, answering every single question that we had under the sun. She was more than willing to make sure we understood our options and the implications of our choices. 

What was it like working with a virtual law firm? 

We loved it! We last worked with a lawyer when we purchased our house. At that time, we had to take time off work, travel to the lawyer’s office, and discuss and sign the documents. 

We had wanted to work with Beeksma Law and were grateful that things were done virtually. Her offices are in Hamilton and Owen Sound. We are located east of Toronto. It would not have been practical if we couldn’t have attended virtual meetings and signings. 

With a virtual law firm, we did not have to do any of that! We had one meeting where I was in the car between appointments, and my husband was able to step away while working. It was so much easier to schedule and attend our meetings with Beeksma Law. When it came time to sign, again, it was so simple. Everything was set up for us to sign virtually, saving us time and effort. 

Simply put, we are pretty busy, and anything easy and straightforward is a big win for us. 

How do you feel after preparing estate documents? 

We feel so much better – this had been hanging over our heads. With strong documents in place, we feel so much more confident knowing our child will be well cared for. 

We are so glad that we also worked with the team at Beeksma Law. They made everything so clear, simple and easy to understand. They ensured that nothing fell through the cracks and were incredibly organized. 

We are extremely pleased with our decision to work with a firm specializing in estate law. We didn’t get the feeling that they dabbled in it or treated it as just another service they provided. Their expertise and passion were evident throughout the process, and there was no doubt that this was their area of expertise. 

Preparing Estate Documents with Beeksma Law 

At Beeksma Law, we love helping families feel confident about their futures by creating strong estate documents. Contact our team today to learn more about how we can help you.

Estate Planning Designed For You

Disclaimer: This article on estate planning in Ontario is intended for the purposes of providing information only and is to be used only for the purposes of guidance. This article is not intended to be relied upon as the giving of legal advice and does not purport to be exhaustive.

It has been said that estate planning is a gift to those you love, and we wholeheartedly agree. We know that no one wants to think about the end of our lives. However, we cannot overstate the importance of having these conversations and making these plans. 

Too often, we have seen the pain and grief of a loss compounded by the stress and overwhelm of poor estate planning. 

Planning for the end of your life means taking into consideration your unique circumstances. Our lives are all different, and the plans for our estates must reflect that. 

This article outlines, at a very high level, how different factors influence your estate planning. Of course, we would be happy to speak further about your situation. You can book a consultation here for more information on estate planning in Ontario. 

Estate Planning in Ontario: An Overview

Estate planning in Ontario is governed primarily by the Succession Law Reform Act (“SLRA”). Its last major update was in the 1970s; however, further changes have received Royal Assent, with some key amendments expected to become law in January 2022. We will discuss those changes in detail in a future article. 

Estate Planning in Ontario: Your Relationships

Getting Married 

Congratulations! You got married – we wish you many happy years together.  

However, under Ontario’s current legislation, if you had a will before you got married, then your entire will has now been revoked unless you made it with marriage in mind. What does that mean for you? Your will may have had provisions protecting your children or donating to causes that you’re passionate about, but these are no longer valid. 

If you recently got married or will be married shortly, it is worthwhile to look at your will. Fortunately, this is one of the changes being made to the SLRA. As of January 2022, marriage will not revoke a will, aligning Ontario with many other provinces. 

In a common-law relationship

While you may have been with your partner longer than most married couples, Ontario’s legislation does not grant the same rights to common-law partners. Suppose you die intestate [definition: a person who died without having made a will]. Your common-law partner does not have a claim to your estate unless one of the following claims are filed: filing a dependency claim or filing a claim for unjust enrichment, both of which involve litigation (i.e. a lawsuit).

Of course, this is an unnecessary strain and expense. It is much more prudent and practical to have a will in place that recognizes your partner and provides for them in the event of your death. 

Separation 

As the SLRA currently stands, a separated spouse still stands to inherit a portion of the deceased spouse’s estate. That means that your home could automatically pass to your estranged spouse, instead of to your children or even a new common-law partner. 

However, as of January 2022, those portions of the SLRA will be amended. The legislation defines situations that deem a couple to be separated. In those instances, a surviving spouse would be treated the same as if the couple was divorced.

Estate Planning in Ontario: Your Children

Minor Children

One key reason to have estate planning in place is to protect your minor children. Therefore, selecting a guardian is an important decision and one that should be given careful thought.  

Generally speaking, a surviving parent would gain full custody of minor children. However, if there is no surviving parent, then other family members need to apply to the courts to gain custody. This could cause strife amongst your family if there are multiple claims and disagreements about who should be your children’s guardians. 

You will also want to consider who will have guardianship over your estate’s assets. Children cannot inherit an estate, so a person will need to be appointed to care for those assets until the children reach the age of majority. That may, or may not, be the same person who has physical custody of the children. 

Adult Children

Your children may be older, so their needs may be different. You will not have to think about a guardian; however, there are still decisions that you must make.  

While an adult is legally defined as 18-years old, is that the age that you want your child to inherit your estate? Many parents consider their children’s maturity level and put a graduated trust in place. This means that a portion of the estate is released at certain points. It is a wise move that protects your child from the poor decisions of their young adulthood. 

Are your children married? Would you want their spouses to inherit a portion of your estate, or should it pass on to any grandchildren? These are questions that must be asked and answered. 

Blended Families

The traditional two-parent family is becoming increasingly less common, and complex “stepfamilies” are on the rise. If this is true for you, this needs to be reflected in your estate planning. 

For example, you may have a child from a previous relationship. You get married but then pass away, and your will leaves your estate to your spouse (your child’s step-parent). The step-parent passes, but that estate is left to a new spouse or their children. Your child is not protected. 

Another example, you and your spouse both have children from previous relationships. You both have wills in place that leave everything to each other and then are divided amongst all the children. You pass, and your relationship between your children and spouse sours. The step-parent amends their will so that their children, and not yours, inherit their estate. Again, your children are not protected. 

While we hate to think about such horrible scenarios, it is a disservice to our children if we do not protect them after we are gone. 

Pets 

While you may consider your pet as part of your family, they are property in the eyes of estate legislation. Therefore, if you would like to plan for your pet’s care if you pass, it will have to be laid out specifically in your will. 

Be Kind – Plan Ahead

We know that you love your family and want to do what’s best for them. Therefore, give them the gift of estate planning so that their loss does not have to include dealing with lengthy legal matters. 

Our firm helps individuals match their estate planning to their lives. If you want to revisit your estate planning, please reach out to us here [link]. Our team would be more than happy to speak with you.