Toronto Estate Law Blog : Toronto Estate Lawyer : Hull & Hull Law Firm : Trust Mediation and Succession Planning : Serving Ontario, Ottawa, Mississauga, Hamilton

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Recently, I was looking over some of the leading cases in life estates. One of the questions that stood out in my mind was whether or not a life estate has a quantifiable value.

Aho v. Kelly, was heard in British Columbia in 1998, but remains a leading Canadian case that is often referred to when the valuation of life estates are being considered.

In Aho v. Kelly the wife and two children of the deceased were each left a 1/3 interest in the matrimonial home of the deceased. The court confirmed that the wife of the Deceased also held a life interest in the same matrimonial home, as per the jurisprudence in British Columbia. The wife commenced an application seeking a court order that the property be sold and the proceeds be unequally divided amongst the three owners of the property.

The wife argued that the proceeds should be unequally divided because she was entitled to further compensation as she had to be paid out for her life interest.

The Court held that a life estate is a property interest that has “some value”. The Honourable Justice Bauman stated that at common law a life estate is alienable, and that upon its transfer to another party it becomes an “estate pur autre vie” (that other life being the original life tenant). The Court concluded that the life interest has a value capable of capitalization, and that this value should be paid out of the proceeds from the sale of the house.

Aho v. Kelly is not binding in Ontario, however it goes a very far way in establishing the framework by which the value of the life interest can be calculated.

Thank you for reading and have a great day,

Rick Bickhram - Click here for more information on Rick Bickhram.
 

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In a captivating article authored by Kent Sepkowitz, an infectious-disease specialist at a Cancer Center in New York City, he recounts the practical difficulties when someone dies at home - doing it yourself can be thorny and chaotic without the administrative help of Hospitals.

Specifically, when someone dies at home, a licensed professional must determine that the person is indeed dead.  While this should be arranged in advance with the doctor, the timing may not ultimately work out.  If no doctor is available, the other option is to call an ambulance…for a dead person.  There are reportedly other annoyances as well, including:

·                    the death certificate must be completed in black ink (using only certain approved diagnoses);

·                    an undertaker needs to be selected; and

·                    law enforcement must be called to establish that no foul play occurred – not an investigation anyone wants to deal with after just losing a loved one.

Mr. Sepkowitz notes that, with the active support of hospice care, savings could come from facilitating the wishes of those who choose to die at home.  He also considers what is likely the more important benefit of assuring tranquility and dignity for the person dying and their family.

Thanks for reading and have a great weekend!

Natalia Angelini

Natalia Angelini - Click here for more information on Natalia Angelini.