Estate Planning: Tales from the Crypt

CRUNCHED ON THE SEA-TO-SKY

Ivan had strong dislikes.

Thirtyish CEO of an upstart nanotechnology firm embraced by Toronto stock analysts, Ivan particularly despised his father-in-law, lawyers, and life insurance brokers.

His father-in-law, John, was a widower, a retired logger. To hear it from Ivan, old John was a Neanderthal: unshaven, sloppy, a couch potato seldom out of his grey woolies, a drooling armpit scratcher unworthy to be the grandfather of his future children. Lawyers and life agents Ivan detested as pettifogging fear mongers, gougers looking for more fees and premiums than necessary to solve life's simple little problems.

Among the few people Ivan liked were his wife Amy and his widowed mother Annabelle, whom he granted a self-contained townhouse suite within their West Van spread. To protect Amy in the event of his premature death, Ivan assured all registered property was owned in "joint tenancy with right of survivorship": the West Vancouver property, the Whistler condo, the Porsche 911, all his stocks and stock options. In his hand-written will he bequeathed all unlisted personal wealth to Amy. This, he figured, was sufficient to keep another lawyer out of his life.

Disgusted that he was unable to arrange sufficient life insurance via the Internet, he victimised his mother's insurance advisor. "Listen," said Ivan, "if you want your grubby little commission, just fill out the paper work. Skip the platitudes your small mind passes like gas for professional advice."

Ivan's cunning made his father-in-law an extremely wealthy man. And boosted the incomes of two law firms.

The 911 is a fine car, but Ivan was not a good driver. Ivan and Amy got crunched on the Sea-to-Sky highway. Ivan, being 13 months older, was deemed by law to have died first. He was also deemed to have died "intestate" (without a will) as "holographic" (hand drawn) wills, though acceptable across the prairies, are not valid in BC. Under provincial intestacy regulations, all his possessions passed unquestionably to Amy -- which was what Ivan desired. But Amy too died intestate, and under the same rules her entire estate transferred to her father -- the very last person Ivan would have intended.

Annabelle, Ivan's mother, fearing that she was about to be evicted, hired a law firm to establish an interest in what had been her son's estate. Logger John, who would have gladly given Annabelle anything she wanted, was a mite peeved to be handed a writ, and hired his own lawyer.

At this point the previously-maligned life insurance broker suggested that Annabelle and Logger John might want to revise their own wills, as their children—their sole beneficiaries—were now deceased. As they have no surviving siblings, if either were to perish now a world-wide search would be launched for all surviving nephews and nieces to split the pot equally. But whose pot? Whose nephews and nieces? At what legal cost?

MORALS OF THE STORY:

1: Even bright guys make stupid mistakes.

2: If you don't have a will, get it done.

3: If you do have a will, make sure it's right.