I recently attended a presentation by John MacCauley LLB and Charles Eyton-Jones LLB sponsored by the Scarborough Estate and Financial Planning Council and found out a little about 2012 changes in probate rules.
People used to avoid probate fees by putting assets in joint names. Jointly held assets pass to the surving joint owner and therefore avoided probate. Apparetly now, any asset that the deceased had an interest in has to be reported for probate!
There is the issue that an account where an adult child is added to title is assumed to have been added for estate planning purposes. It is possible to have a letter stating that it was the parent’s intention to actually give the asset, but then there is a taxable disposition at the time the name is added.
It is also generally a big mistake to add a child to the title of the parents home if the child already has a house as it causesproblems with the principal residence exemption.
The general idea is that the law has changed and you should review your own situation and plans to see if you are affected.
