Avoid Probate Delays: The Power of Joint Tenancy and a Proper Will

Joint Tenants share equal ownership of an asset. Each joint tenant has a 100% stake in the asset. This means they can only sell or transfer the asset with the consent of the other joint tenants. When one joint tenant dies, their share automatically passes to the survivor(s) known as “right of survivorship.” The deceased joint tenant’s share does not go through probate.

A Power of Attorney (POA) gives the attorney the authority to make financial decisions on behalf of an individual that is alive. The authority granted by a POA terminates upon the death of the individual.

During a recent asset transaction, we assumed that the Executor of an estate had the authority to sign legal documents on behalf of the deceased. This was not so. We were notified that the Executor cannot sign on behalf of their deceased spouse. Fortunately, an online check of the mortgage documents confirmed the spouses were listed as joint tenants. The mortgage transaction was completed by way of release via “transmission to surviving joint tenant” when presented with an original death certificate.

If the couple had been listed as separate individuals known as tenants in common, this would have prevented the closing. The only other option would have been to wait for probate of the estate which could take six months to a year or more.

In the past year, two close friends that I’ve known for decades passed away suddenly, no history of illness, no symptoms, no warning. It’s the wakeup call that prompted me to update our last will and testament that I hadn’t looked at in 19 years.

It took years for an older friend of mine to finalize the estate of her friend who died without a Will. During the 5-year probate, the empty condo sat vacant while property taxes, utilities, and strata fees accumulated with interest and penalties.

Fewer than half of Canadians have a Will. There are DIY options if your estate is simple. It may take a little bit of time and effort to think about bequeathing your assets, but this document ensures a faster and smoother transition for your beneficiaries.

Source:

https://narrativeresearch.ca/half-of-canadians-dont-have-a-last-will-and-testament-while-diy-online-providers-are-now-responsible-for-a-quarter-of-existing-wills/