Difference between revisions of "Duties of a Personal Representative (16:XII)"
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{{REVIEWED LSLAP | date= | {{REVIEWED LSLAP | date= June 30, 2023}} | ||
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For life insurance policies with designated beneficiaries, the proceeds do not form part of the estate. A beneficiary designation in a will is invalidated by a subsequent designation made in an insurance policy or is revoked when the will is revoked (see ''Insurance Act'', s 61(2)). | For life insurance policies with designated beneficiaries, the proceeds do not form part of the estate. A beneficiary designation in a will is invalidated by a subsequent designation made in an insurance policy or is revoked when the will is revoked (see ''Insurance Act'', s 61(2)). | ||
Also, a will cannot revoke an earlier life insurance designation unless it complies with section 60 of the ''Insurance Act''. It requires that the policyholder file a contract or declaration with the insurance company, designating the beneficiary of the policy irrevocably. If this document is filed, the beneficiary must consent to any change to the designation. However, a general revocation clause that does not specifically refer to the insurance policy or contract does not revoke the designation made prior to the will because it does not meet the definition of “declaration” under the ''Insurance Act''; see ''Hurzin v Great West Life Assurance Company'', (1988) 23 BCLR (2d) 252 (SC). | Also, a will cannot revoke an earlier life insurance designation unless it complies with section 60 of the ''Insurance Act''. It requires that the policyholder file a contract or declaration with the insurance company, designating the beneficiary of the policy irrevocably. If this document is filed, the beneficiary must consent to any change to the designation. However, a general revocation clause that does not specifically refer to the insurance policy or contract does not revoke the designation made prior to the will because it does not meet the definition of “declaration” under the ''Insurance Act''; see ''[https://www.canlii.org/en/bc/bcsc/doc/1988/1988canlii2980/1988canlii2980.html Hurzin v Great West Life Assurance Company]'', (1988) 23 BCLR (2d) 252 (SC). | ||
Those with a significant amount of money in RRSPs should consult a tax lawyer or tax accountant for estate tax planning advice, as there are several tax rules that apply solely to the final year of a person’s life. | Those with a significant amount of money in RRSPs should consult a tax lawyer or tax accountant for estate tax planning advice, as there are several tax rules that apply solely to the final year of a person’s life. | ||