----- Original Message -----
From: "HXXXXX XXXX" <[email protected]>
To: <[email protected]>
Sent: Monday, June 16, 2003 12:54 PM
Subject: some questions
Hi! EXXXX XXXX, a friend of mine, suggested that you
might proide some answers to somequestions I have.
My son who was going through a divorce and was
separated from his wife for six years (two
children)died intestate.
He had previously appointed me "power of attorney" and lived with me since
he left
the matrimonial home. He was self-employed and going
through a lot of stress and managed to not pay GST tax
of over $200,000 as well as income tax of over
$300,000. That is an aggregate of penalties and
interest. My lawyer tells me that I can apply to
become trustee and that expenses I would accrue would
come from the estate (which seems to be less than what
he owes) and that I would not be responsible for his
debts. His estranged wife wants to become trustee
(I'm not certain she knows the full extent of his
liabilities) and I was told that if she agrees to
become trustee she will be responsible for his debts.
I own my own home, am a widow, and cannot afford to
make an error in judgment here. I also do not wish to
communicate with former daughter-in-law except through
a lawyer as she was responsible for a lot of grief for
my son. She also is not in a financial position to
handle 500,000 in debt and could lose her home and the
two children would suffer which my son would not want,
nor I. Any help you can provide about the role and
obligations of a trustee in such a situation would be
most helpful. Helen Kiper
--------------------------------------------
david ingram replies
I am going to circulate this to my email list and I am sure that one or two
or a dozen of the lawyers on the list will want to comment.
The power of attorney is of no importance here.
Becoming the trustee of the estate does NOT make the trustee responsible for
the debts of the deceased. And, you are correct, the expense you will incurr
if you take it over will be covered by any monies that are in the estate.
However, it sounds like the $500,000 tax bill is likely to wipe all of that
out.
I do not know the extent of your daughter-in-law's invol,vement with your
son's business but if his business was incorporated and she had been or was
still a technical director of his company, she could be held liable for the
GST for instance.
If the house was in joint tenancy, his wife will get the house.
I do not have enough information to advise you properly at this moment.
However, for your grandkids sake, you need to get together with your
daughter in law and a good lawyer and accountant to decide what the
situation is to protect any monies that may be there for the children.
With two children in BC, the house and one third of the residue goes to the
wife and two thirds to the children but that is supposed to be "after" the
bills are paid.
we would be happy to assist with the accounting problems and can give you a
choice of three lawyers you could use to look after the legal end.
But you have to act together in my opinion.
David Ingram of the CEN-TA Group
US / Canada / Mexico tax and working Visa Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 913-9133 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
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