Many people are uncomfortable or even fearful of considering their mortality. But estate planning forces individuals to confront the idea of their own passing.
The administration of an estate in Ontario demands meticulous attention to detail and a comprehensive understanding of a deceased’s assets. Debbie Stanley is CEO and Senior Estate Administrator of ETP Canada, a firm that helps families ease the burden of administering an estate after the death of a loved one. Stanley stresses, “One critical task which is often overlooked or underestimated by individuals is conducting a thorough inventory of all possessions inside their home.”
In Ontario, this process is extremely important because it fulfills the executor’s legal requirement of safeguarding all assets, ensures fairness among beneficiaries, and minimizes family disputes. In addition, if the estate requires probate, then the process requires a complete inventory of the deceased person’s estate to determine assets on the date of death, in order to calculate the Estate Administration Tax that is payable to the Minister of Finance.
Stanley says, “While the process may seem meticulous or time-consuming its importance cannot be overstated. Failing to provide an accurate inventory can lead to delays and complications, resulting in additional legal expenses, causing further distress to the beneficiaries.”
Probate rules shock executors
For probate purposes, an executor is obligated to report the value of the contents of your home. Stanley says, “Most executors think I’m joking when I tell them must have a written record of each piece of property, take photos of everything in the house, and inventory everything, right down to the sock drawer.”
Even the small things like cutlery, mugs, and plates must be inventoried because the Ministry of Finance wants to know the value of items inside the home. Stanley points out, “If you haven’t created a secondary will to manage assets that don’t need to be probated, and 99% of people do not have a secondary will, that means items inside the home must be probated if the home is going through probate.”
If there are things like jewelry, it must be appraised. Stanley says, “Many executors are shocked to learn that they can’t just let the family come in the house after a loved one’s passing and take what they want. The executor is responsible for all assets of the estate such as bank accounts, cars, houses, and the property inside the house. If something goes missing, the executor is responsible for it. The stuff inside the house is the biggest job and is one of the most difficult issues to deal with.” Even if you think the property has no value to the government, it probably has some value, if not sentimental value to the family.
Avoiding a fight over wine glasses
We all have possessions within our homes that we have collected and things we may treasure. Stanley says, “When you’re thinking about your possessions, I recommend you look around your home to see what you have. Because at some point, your executor must have an inventory of everything you own, including heirlooms, collectibles, and ordinary things like kitchen utensils.” While their monetary value may be negligible, their sentimental value could be immeasurable.
Disputes over inheritance can strain relationships within families. Without a detailed inventory, misunderstandings may arise, leading to disagreements and potential legal battles among family members. Stanley says, “The item may be sentimental to you, but it can become a very expensive sentimental item if you go to court over it. For the legal costs over the Royal Doulton figurines, individuals could have gone out and bought a Royal Doulton.” An inventory allows the owner to specify who should receive the items, preventing disputes and hurt feelings.
De-cluttering is a good first step
Downsizing and de-cluttering tends to happen later in life. But Stanley reminds us, “Death does not wait for anyone to be ready. I’m not saying you should always be thinking about your passing, but if you have a lot of stuff and you think it would be a huge task for someone else to empty your home, it may be something you want to do yourself.” Donating or selling things you no longer use would be a great place to start.
Some families use the sticker approach. Family members put a sticker on the items they would like, and if more than one person wants that item, then it can be discussed. Stanley says, “If you want to wait until death, I recommend writing a handwritten note designating the items you would like to go to certain people, and even going as far as to say why. When we explain our reasons why while we’re alive, it prevents family members from filling in the gaps later.”
It's the season for giving
If you’re not using the item now, why not gift it or donate it? Stanley says, “There are many ways we can pre-emptively start the process without it being all about death. It’s the holidays. What better gift than sharing a sentimental item with a loved one at this time of year? If there are items you would like specific individuals to have and they’re not named in the will, give them the items now. Debbie Stanley had a client who gifted their guitar which they weren’t using, to their great-nephew. “They told me the guitar would be gifted when they pass and I suggested, why not gift it now. They did that, and now have the enjoyment of seeing their great-nephew learn how to play the guitar while they are still alive.”
This is your legacy
When you’ve passed on and don’t have your own voice anymore, loved ones left behind may create their own story. Stanley says, “We’ve seen grieving loved ones who attach themselves to an item and then tensions boil over. Typically, arguments start over things like teacups, photos, and sentimental jewelry, nothing of any significant value.”
Having a discussion will reduce conflict in the long run. Stanley adds, “These are difficult conversations that we all tend to avoid. And what I often hear is, ‘Who cares, I’m dead.’ But this is your legacy. This is how people remember you. A conversation may help preserve family relationships during a sensitive and emotional time.”
ETP Canada Offers Executors’ Support
ETP Canada has a team of experienced professionals who are experts at estate administration and can help you with the daunting task of ensuring everything you own is inventoried. Debbie Stanley says, “That’s where we spend most of our time in administering an estate, cataloguing a person’s belongings, and then attempting to assign values to what we can by having items properly appraised. We also obtain permission from beneficiaries and get direction to either donate, discard, or sell the items and then executing it.” Executors should seek professional guidance to ensure accuracy and compliance with Ontario’s estate laws.
For those who have accepted the invitation to be an executor or individuals who would like to know more about the role, ETP Canada offers an engaging, easy-to-follow crash course called “Executor Ready.” which is designed to help executors in Canada save time and avoid costly mistakes when settling an estate. It’s a 10-module course packed with insights and information to help you handle the executor role with success.
For those who would like a professional to guide them through the executor role, ETP Canada offers “Executor Support.” Their experienced professionals will be available to ensure that you never feel alone throughout the estate administration process. Debbie Stanley stresses,” Make sure your executor is fully supported because it’s one of the most difficult jobs they will ever have in their life.”
If you have been designated an executor or looking forward to doing an inventory of your assets and feel that you need guidance and support contact the estate administration professionals at ETP Canada at (866) 309-0387, via email: [email protected] or visit them online here or here.