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Hello! My name is Joe Bell and I am the Chief Executive Officer of Bayshore Credit Union Ltd. I would like to welcome you to our web site and the first edition of the CEO's newsletter. Through this newsletter, I will keep you informed about new products and services which Bayshore is introducing, highlight various community initiatives which we undertake and offer tips on financial planning, estate planning and how to make the best use of the services and products which we offer. I will be updating this newsletter at least once a month so come back often and let us help you reach your financial goals.
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Financial Tips - Estate Planning
When considering estate planning, one of the main priorities is to ensure that funds pass easily from one person to the next after your passing. If you do not have things properly arranged, your beneficiaries may find that receiving inherited funds can be delayed by having to obtain probate on your estate. This is even true if your sole beneficiary is your spouse.
All financial institutions have rules regarding the amount of money which can be released to a beneficiary without having the estate probated. In the Ontario Credit Union system that limit is $10,000. Probate is the process by which a court issues a ruling certifying the one, true and legal will of a deceased person. It provides the financial institution with the legal assurance that when they release money to a beneficiary, that it is the correct beneficiary. Unfortunately, obtaining probate can take up to three or four months and can cost $1,000 - $1,500 or more.
The easiest way to eliminate the need for probate is to ensure that all of your accounts and investments are held jointly between yourself and your eventual beneficiary. In this way, the funds are the property of both of the individuals and should one of the people pass away, the funds are automatically the property of the surviving person. In eessence, as jointly held funds are already the property of both people, the issue of rightful ownership has already been dealt with and the need for probate does not exist.
For more information on estate planning and the rules governing the release of funds to designated beneficiaries,
please feel free to contact me at (613) 966-5550 or by e-mail at bayshore@intranet.ca .