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the original will. The same formal
requirements for witnessing of a will
apply to a codicil.
Besides the distribution of
bequests (personal property) and
legacies (money) normally thought of
when it comes to the contents of a
will, the document often also
includes the appointment of
executors, establishment of trusts for
minors, powers to trustees, funeral
arrangements, appointment of
guardians for minors and distribution
of the residue of the estate.
Of particular importance in recent
times, says Gamble, is t ., affect of
the Family Law Act (FLA) on the
contents of a will as it relates to one's
spouse. In simple terms, it is not
possible for one spouse to attempt to
"disinherit" the other spouse. The
surviving spouse has the right of
"election" to select whether to take a
portion of the estate set out in a will
or choose to take that portion entitled
to a spouse under the FLA. On death,
a surviving spouse has the right to
one-half of the increased value of the
estate of the deceased spouse.
Where no will exists, either as a
result of failing to prepare a will or
having a will that is invalid, the
Case Study 2
A farmer dies with no will but has put a number of assets in joint ownership and
names a beneficiary for this RRSPs.
Assets
Before
Death
Bill's
Estate
Mary's
Estate
Post
Settlement
Savings and Investments -joint
15,000
0
15,000
?
RRSP - Beneficiary Named
22,000
0
22,000
?
Livestock
85,000
85,000
85,000
Machinery
65,000
65,000
65,000
Farm 1 (Home farm) -joint
350,000
0
350,000
350,000
Farm 2
250,000
250,000
250,000
Total
$ 787,000
3 400,000
$387,000
$ 750,000
Liabilities.
Accounts Payable
6,000
6,000
6,000
Operating Loan
35,000
35,000
35,000
Mortgage on Farm #1
80,000
0
80,000
80,000
Mortgage on Farm #2
110,000
110,000
0
110,000
Total
$ 231,000
$ 151,000
$ 80,000
$ 231,000
Equity
$ 556,000
$ 249,000
$307,000
$ 519,000
. Bill
Estate Settlement Calculations 's
Esstatate
Cash Costs Related to Estate Settlement
Probate Fees 5,500
Estate Administration Charges 20,000
Funeral Expenses 7,000
Real Estate Fees on sale of Farm #2 0
Total Expenses $ 32,500
Net Value of Estate $ 216 500
Division of Net Value
Mary $ 200,000
1/4 of the remaining $ 4,125
Total $ 204,125
Children
Remaining to be divided $ 12,375
Bill Jr $ 4,125
Sam $ 4,125
Becky $ 4,125
Analysis
Total Cash Needed Minimum $ 36,625
Maximum $ 44,875
Proceeds of the farm sale 0
minus real estate fees 0
minus mortgage 0
cash available from sale 0
add savings and RRSP 37,000
Total Cash Available $ 37,000