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The Rural Voice, 1997-01, Page 30WE WANT YOUR GRAIN! Elevator - Seaforth 519-527-1241 • Corn • Soys • Oats • Western Grains CASH & FORWARD CONTRACTS Cali us today for Quotes Dave Gordon Elizabeth Armstrong Richard Smibert Ian Carter london agricultural commodities, inc. 1112 HYDE PARK ROAD HYDE PARK, ONTARIO NOM 1Z0 519473-9333 Toll -Free 1-800-265-1885 th INCOME TAX .� SERVICE • farm, business, or personal • complete year-round service including tax audit representation • E -File available Over 16 years' experience Quality work at reasonable rates "FREE CONSULTATION" Stephen Thompson Box 387, Blyth 482-7551 26 THE RURAL VOICE 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