Wilhaven National Post-Services, Inc .

1. Wilhaven NationalPost-Services, Inc. ESTATE ADMINISTRATION INFORMATIONAL PRESENTATION

2. Wilhaven National… …assists Executors, Administrators, and families with final affairs after a death. These affairs include: • Immediate notification to insurance providers to begin the claim process • Notification to public and private pension providers to discontinue pensions (to avoid overpayments) and apply for death benefits/survivor pensions (national and international) • Notification to Revenue Canada and guidance on filing final tax returns and applying for Clearance Certificates • Notifications to cancel all personal identification, licenses, memberships, subscriptions, passports • Notifications to cancel all credit cards, loans, insurances, leases • Guidance and notifications to Veterans’ Affairs, Last Post Fund, Firearms disposal/transfer, WSIB • Guidance and notifications regarding utilities, services • Any other requirements based on personal needs of the family…this may include: • Power of Attorney notification to Revenue Canada, Service Canada, private pension providers, utilities, etc. • Change of beneficiary form information for surviving spouses • Name change on accounts for utilities, etc. • Security reminders and suggestions for surviving spouses 'When all's said and done, all roads lead to the same end.  So it's not so much which road you take, as how you take it'Charles de Lint Wilhaven National 2009

3. Executing final affairs… The first thing to remember is that although there may be a Will it most likely won’t be read until after the funeral so it is important for the family to know who the Executor is or who is authorized to make funeral arrangements. **NOTE: even though the deceased may have pre-planned his/her funeral the Executor has the authority to alter those plans so people must choose their Executor carefully! Myth or Truth? • If the funeral home knows there is an insurance policy they can be sure they will get paid....Myth. • The beneficiary may not choose to make that money available for funeral and burial costs. If the policy is made payable to the estate then it may take time for it to be available depending on whether there is a Will or not. • Family members assume who the beneficiary is on a policy based on relationships…Truth • It is unbelievable how many families don’t discuss these issues and often they don’t perform due diligence and complete change of beneficiary forms when applicable. Individuals should ensure that the beneficiary information is kept with the policy. Situations have arisen where the payout went to a previous spouse or child and none of the money was used for the funeral expenses. Wilhaven National 2009

4. Costs associated with Probate Cha-Ching! If the estate is simple and there is a surviving spouse then it may not be necessary to probate the Will and apply to the Courts for a Certificate of Appointment of Estate Trustee without a Will, but it is best for them to consult a lawyer if there is any doubt. However, if there are bank accounts or property that was not jointly owned then there is no automatic transfer (if there is a Will then property could be left to a beneficiary but without one it can be tricky) and probate will be necessary. The cost of probate is set by legislation in the Estate Administration Tax Act, 1998. It is calculated on the total value of the deceased’s estate. Even if there is a Will it may be necessary to probate the estate, legal advice is advisable. It may also be necessary to post a bond or surety to protect beneficiaries and heirs…. Wilhaven National 2009

5. BONDS & SURETIES FOR PROBATE What is a bond? A bond protects the beneficiaries and creditors of the estate in the event of improper administration of the estate assets. It is posted with the court by the estate trustee as security for the collection, administration and accounting of the assets of the deceased's estate. A bond is required under the Estates Act and the Rules of Civil Procedure in three situations (with certain limited exceptions): • Before an estate trustee obtains a certificate of appointment of estate trustee without a will; • Before an estate trustee obtains a certificate of appointment of estate trustee with a will where the estate trustee is not named in the will; and • Before an estate trustee obtains a certificate of appointment of estate trustee with a will where the estate trustee is named in the will but is not resident in Ontario, or in a province or territory of Canada, or in a Commonwealth country. What is a surety? There are two types of surety: (1) a personal surety who makes him or herself personally responsible for payment in the amount of the bond should the estate trustee fail to properly administer the assets of the estate; and (2) an insurer licensed in Ontario to write surety and fidelity insurance who acts as surety and who provides a bond for a fee. A personal surety must be an Ontario resident and cannot be a minor or a solicitor. Two personal sureties are required where the value of the estate is more than $100,000. One personal surety is required where the value of the estate is $100,000 or less. The Estates Act provides that the amount of the bond shall be double the amount or value of the estate. Where the surety is an insurer, the amount of the bond shall be equal to the amount or value of the estate. Reference: http://www.attorneygeneral.jus.gov.on.ca/english/estates/estates-FAQ.asp#s7 Wilhaven National 2009

6. Costs to remember when calculating financial needs after a death… It is important to determine how long the survivor will require financial support…many dual-income couples assume that a survivor will be able to return to work. Many do not have mortgage insurance and buy homes based on both incomes. Wilhaven National 2009

7. TRUE… Pre-planning is not synonymous with pre-paying Pre-paying through a funeral home may allow the customer to lock in prices Pre-paying before the implementation of the HST may save the customers money Money held in trust by funeral homes is guaranteed by the Board of Funeral Services Money is transferable to another funeral home should customer change his/her mind Any money left over after paying applicable expenses to the funeral home is returned to the designated beneficiary FALSE… If one pre-plans they must pre-pay Pre-paying guarantees and locks the price of the funeral expenses Implementation of the HST means that funerals will cost more If money is mismanaged by a funeral home then the customer is out of luck and loses the money If one pre-pays at a funeral home then he/she cannot change funeral homes later Any money generated by interest that is left over after funeral expenses are paid is kept by the funeral home PRE-PAYMENT…TRUTHS/FALLACIES CAVEAT EMPTOR Wilhaven National 2009

8. ONTARIO FUNERAL SECTOR – QUICK FACTSBOARD OF FUNERAL SERVICES Average cost of services based on that year’s price list – it’s the amount consumers would have paid had they purchased a funeral (excluding taxes and disbursements) From the Office of the Registrar General, for the calendar year. Deaths registered in Ontario, where the body was cremated. Wilhaven National 2009 Reference: http://www.funeralboard.com/

9. IMPORTANT CONSIDERATIONS • If insurance is purchased to pay for funeral expenses then it is important for it to be accessible as soon as possible. If it is a large policy that takes several weeks to process then that could cause the family financial hardship since many funeral homes require deposits. It may be wise to have several policies, one for funeral expenses and another that provides for the beneficiaries for the longer term and for greater expenses. • Insurance provided by insurance companies specifically designed to cover funeral expenses is processed and immediately available to the family. No medical is required to purchase this insurance but there is a limit on what can be purchased. It is possible to include enough money to cover taxes and disbursements but it is unsuitable for payment of mortgages, loans, etc. • Even though insurance for funeral expenses is purchased it is still necessary for the consumer to pre-plan at the funeral home and ensure the price is guaranteed in the contract. It is essential that the funeral home, executor, and/or family is aware of the policy. The policy does not guarantee any prices with funeral service providers. • If pre-payment is provided to a funeral home to be held in Trust then it is imperative for the consumer to ensure they receive financials related to the Trust and the investments. This should be provided by the funeral home. It is important to note that consumers must rely on the decisions the funeral home makes for investing the money. Wilhaven National 2009

10. Thank You Thank you for the opportunity to share some important information with you…hopefully you find it useful. The most important thing to remember is that this life event requires a compassionate approach and some psychological awareness of not only our Canadian culture, but also the approach other cultures take towards death. Some hurtles to overcome are cultural, generational, and superstitions. These are monumental hurtles but our vision at Wilhaven is that someday Canadians will approach this life event with the same state of mind as when they approach other life events. While it may not be a joyous occasion it is the only life event after birth that we can be absolutely 100% certain will occur to us. Lisa Willen Vice-President Wilhaven National 2009