Life Insurance Locator Service

Posted on July 29, 2009 by Hull and Hull LLP

 

Ever wonder if (or wish that) you might be the lucky beneficiary of a hefty life insurance policy left to you by some benevolent benefactor? Well now you can find out if your wishes have come true. 

A life insurance policy locator service created and maintained by MIB Solutions Inc. allows you to search 170 million records to see who may have named you (or your client) as a beneficiary. The database includes policies collected from virtually every North American carrier involved in life insurance. The hit rate is 30%. An executor, administrator, a surviving spouse or other relative eligible for appointment may be entitled to order the report.  Policy Locator can make it easy to discover life insurance benefits you may not have realized existed.

How to Submit a Request

  1. Download the search request form and fill in the required information. 
  2. Include an original death certificate, containing an official seal, with the request form.
  3. Include a $75.00 check (payable to MIB Solutions, Inc.) or money order in U.S. currency.
  4. Mail the above items to MIB Solutions at the address listed below or supplied on the form.

Your Policy Locator search report and the "Policy Locator Research Primer" will be mailed to you shortly thereafter.

Mailing Address:
MIB Solutions, Inc.
50 Braintree Hill Park
Suite 400
Braintree, MA 02184-8734

Good Luck!

Sharon Davis 

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FAQs on Wills, Death & Taxes

Posted on July 27, 2009 by Hull and Hull LLP

 

The Ontario Ministry of the Attorney General Website posts answers to frequently asked questions about estates matters like how to find a copy of a deceased person’s will and how to calculate the amount of estate administration tax. 

There is a public database on site at the Toronto Estates Office at 330 University Avenue that contains information on wills deposited with the court for safekeeping or provided through an application for a Certificate of Appointment of Estate Trustee with a Will. 

Wills deposited with all Ontario Courts from 1996 forward can be searched through the Toronto office. Wills deposited in Toronto can be searched back 40 years. You must contact the individual court offices in other jurisdictions for wills pre-dating 1996.

You can search the name of the deceased and the date of death in order to obtain the file number and review the original will. Searching is free. If the file is located there is a $10.00 fee to retrieve it, $61 if it is in storage, and $1.00 per page for photocopies of the will.

As for estate administration tax, the formula for calculation is set out in s. 2(6) of the Estate Administration Tax Act, as follows:

·         $5 for each $1,000, or part thereof, of the first $50,000 of the value of the estate, and

·         $15 for each $1,000, or part thereof, of the value of the estate exceeding $50,000.

Or, perhaps you might want to consider a Joint Last to Die Insurance Policy, insurance designed for couples with the specific purpose of providing sufficient funds to pay taxes that will be owed by the estate; the policy pays out the total death benefit upon the death of the surviving spouse. Click here for Sun Life Financial’s version.

Death & taxes: You might not be able to avoid the former but, with a little planning, you can insure against the latter.

Thanks for reading.

Sharon Davis

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Death and Taxes and RRSPs (Oh My!)

Posted on March 19, 2009 by Hull and Hull LLP

The tax treatment of RRSPs on an annuitant’s death is something that often confuses (and perplexes) beneficiaries of an estate.  I’ve seen more than one situation where the residual beneficiaries of an estate are distressed to find out that the estate is picking up the tax bill for an RRSP being transferred to a named beneficiary…the argument being that they, as residual beneficiaries, should not have to pay taxes associated with funds be transferred to someone else. 

The general rule is that absent a tax-deferred rollover (more on that in a minute), the fair market value of the RRSP on the annuitant’s death is treated as income and must be included in the annuitant’s terminal return (tax return that is filed for the year of death). 

As noted above, there are a couple of situations where the taxes associated with an RRSP can be avoided by the estate.  The first is where the designated beneficiary is the annuitant’s spouse or common law partner; the other is where the beneficiary is the annuitant’s financially dependent child or grandchild.    

Where the beneficiary is a spouse and a physically/mentally infirm child or grandchild, the RRSP can be rolled-over to the beneficiary.  Where the beneficiary is a minor child or grandchild (who isn’t infirm) the proceeds of the RRSP can be used to purchase an annuity that will make payments annually until the minor has reached 18 (with such payments being taxed).  However, if the children/grandchildren are over 18 and not infirm no tax deferral will be available. 

It is worth noting that the tax liability the estate might incur is related only to the value of the RRSP on the annuitant’s death.  Once the recipient starts withdrawing funds, s/he will be liable for the tax, not the estate.

If you want to know more about the tax treatment of RRSPs on death, check out the Canada Revenue Agency’s memorandum on the issue. 

Have a great day!

Megan F. Connolly 

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