Calgary Real Estate, Wills and Estates, and Business Law Blog

Buying, or renting a condominium or home in Alberta is typically an exciting experience, but unanticipated pitfalls exist. Sadly, real estate fraud is becoming more and more prevalent, and being aware of the tricks scammers use might prevent such incidents. Consumers must look out for red flags that might indicate title fraud, mortgage fraud and online property sale or rental scams.

Title fraud involves one person stealing the identity of the titleholder of the property and assuming ownership of it. This can be done by mailbox theft, computer hacking or dumpster diving, and the fraudster will then use the registered owner's personal information to transfer ownership of the property to him or herself, or even to sell it to another unsuspecting person. It can also be used to register a new mortgage in the name of the identity thief, who will disappear with the money and leave the real property owner to pay the mortgage.

Although most business owners in Alberta understand that legacy planning is an integral part of protecting their assets and dealing with succession planning. Coping with the business-related complexities such as tax issues and more could be challenging. However, seeking legal counsel who focuses on establishing wills and estates can simplify the process significantly.

Important matters to consider include contingency plans for the running of the business in the unfortunate event of the business owner becomes incapacitated or dies unexpectedly. If there are other business partners or co-owners, a buy-sell agreement might have to be established, and life insurance may be required to fund such agreements. Decisions will have to be made about a successor, and if the plan is to leave the business to a family member, what provisions must be made to provide other family members with equally valued assets?

Some people in Alberta diligently take care of estate planning at some time in their lives, but not all of them schedule the review of these documents to make sure they remain current. The contents of wills and estates are affected by life's changes and neglecting this task may render them useless. For example, a person whose brother is listed as the guardian of his or her children in the event of death may have relocated to another province, or even passed away himself, leaving no one available for this critical task.

Updating beneficiaries is another crucial task. Anyone who listed beneficiaries years ago when he or she first opened Registered Retirement Savings Plans or Tax-Free Savings Accounts might have been young and single at the time. If beneficiaries were never updated after marriage and the birth of children, loved ones will have problems obtaining those funds if something should happen to the account holder. The same applies to other investments and accounts on which beneficiaries were listed.

Estate planning can be a daunting process for anyone in Alberta without the guidance of legal counsel. One of the estate planning tools that can help accomplish certain goals is a living trust. This option allows a person to pass property ownership to beneficiaries immediately. Once established, a living trust can be modified throughout the testator's life, and because the trust owns the assets, it does not form part of the trustor's estate and is therefore not subject to probate.

Those with children from previous marriages typically find living trusts the ideal way to provide support for an earlier spouse, if desried, and ensure that children receive the inheritances intended for them. In cases in which the surviving spouse's financial expertise is not sufficient to manage the assets in a trust, a trustee can be appointed to oversee the trust on behalf of the surviving spouse. If a child or spouse is disabled, a living trust can provide appropriate care for that person after the testator's death.