This Estate Lawyer Has Seen It All. His 5 Tips for Dying Without Money Drama

It’s not our favourite task, but we do consider it part of our editorial duty to occasionally remind you that you will die. Hopefully not soon! But someday. And just in case that day is nigh, financial prudence requires you to take some small steps now — no matter your age — to ensure your estate is in order to avoid leaving behind a mess for your loved ones. Last year we published a crash course on wills. (Upshot: get one, especially if you have kiddos.) This time we’re widening the lens to estate law with the help of Jacob Murad, president of KPA Lawyers, in Mississauga, Ont. In his own words, Murad explains how to avoid a Knives Out–style fight. Tip 1: Two executors is usually one too many.

There are two major facets of making a will: deciding who gets your stuff and appointing an executor to distribute it. The executor piece is often what causes the biggest problems. Parents sometimes want to appoint two children equally, but then both have to sign off on everything, and nothing can move forward until they do. I knew a family where one sibling was in Canada, closer to the parents, while the other was in another country. The one abroad was named the executor, but the person here was the caretaker, so she was arguing that she should have more power, which caused lots of resentment. Tip 2: Your spouse might not be the best executor, either.

I knew a guy who died young, sadly. He owned a business and properties in different provinces, and his wife got stuck as the executor. She had kids, and suddenly she was dealing with her husband’s business partners and properties. It was overwhelming. Being an executor is a big job, so you have to think: if you were to die tomorrow, who could handle it? Tip 3: Be strategic about who inherits your big assets — like your house.

Sometimes parents will leave their home equally to all their children, but inevitably one child wants to keep the property while another wants cash. Now someone has to buy out the other, or everyone has to agree to sell, and that causes problems. Taxes should factor into your decision. I knew of a situation where a family was fighting over a property. But they failed to realize that upon death, certain assets are treated as if they’ve been sold. So the CRA looked at this property and said, “Here’s the tax bill.” After all that fighting, the family was forced to sell the property just to pay the taxes.

Tip 4: Trusts are not magical tax-avoidance devices.

Years ago, trusts had significant tax advantages, but the rules have changed dramatically. Today, trusts are often expensive and inefficient. They require ongoing filings and accounting costs, and after 21 years, major tax consequences can kick in. Which is why I rarely recommend them. Tip 5: Don’t endure probate without a lawyer.

I’ve seen lots of people try to handle probate — the process for verifying wills and distributing a deceased person’s assets — without a lawyer. That’s a mistake, in my view. I’ll always remember one client who came in wearing a biker jacket, looking very intense. Apparently, he had walked into a bank, but the banker was scared and refused to see him. “I’m trying to help my family member!” he insisted. So he came to my office, and he’s yelling and upset. “Here’s my card,” I told him. “Go back and give this to the bank.” Once he did, the bankers said, “Oh, OK, we’ll help.” Sometimes people just want to talk to a legal professional. This interview was edited for length and clarity.

Written By

Marin Cogan

Marin Cogan is a freelance writer. She has previously written for New York Mag, GQ, ESPN, Vox, The New York Times, and other publications.