property resides with the trustee in trust for the desired beneficiary . This reduces the value of the transferor ’ s estate and minimizes probate taxes on death , since the assets of the AET do not form part of the deceased ' s estate for the purposes of the probate fee legislation .
Confidentiality The probate application lists the fair market value of the deceased ’ s assets ( owned ) and liabilities ( owing ) at death , and these assets and liabilities pass through the estate . Any person willing to pay a small fee can access a copy of the will and the accompanying probate documents . This can be troubling for many individuals due to concerns about family security and privacy . By contrast , assets transferred to an AET are subject to the terms of the trust and do not pass through the deceased ’ s estate ; accordingly , it is usually the case that the trust ’ s assets can be kept confidential prior to and after death .
To sum up AETs provide a number of benefits that can make them an effective piece of the estateplanning puzzle . Any person considering the use of an AET should consult both legal counsel and a tax advisor with respect to their specific situation .
Protection from claims against the estate An AET ( or a trust in general ) can be an effective tool to protect an estate from claims by family members . The wills variation provisions in the Wills , Estates and Succession Act ( WESA ) provide a regime wherein a spouse or child of a deceased individual can claim support from the deceased ’ s estate , where the provisions for support of such spouse or child in the deceased ’ s will are inadequate . The legislation limits an individual ’ s testamentary freedom when crafting their will , as any limitations of entitlement they may wish to impose under their will could be set aside or varied under WESA . When used correctly , however , AETs can be an effective way to reduce and / or eliminate the possibility of a claim under WESA .
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Wills , Estates and Succession Act ( WESA )
If you ’ d like to read more about the changes brought about by WESA in 2014 , be sure to read “ Wills , Thrills , and Chills – Changes to Wills and Estates Law in British Columbia ,” by Colin S . Ritchie , LL . B ., CFP , CLU , FMA . The article appeared in the July / August 2015 issue of CPABC in Focus and can be accessed online at joom . ag / Yw3p / p22 .
54 CPABC in Focus • Jan / Feb 2017