Estate planning can be complex, and we understand that every situation comes with its unique questions and challenges. At GBA, we recently published our Estate Planning and Handling an Estate After Death eBooks to help guide and support you through these important processes. To build on that guidance, we’ve put together this FAQ article to address some of the most common questions we hear about estate planning and administration. Whether you’re an executor, a family member, or someone proactively planning for the future, we hope these answers provide clarity and confidence as you navigate this journey.
Answer #1: It depends on the situation. If the focus is on understanding legal documents like the will or trusts, consult a lawyer. If the focus is on tax implications or the estate’s financial structure, consult an accountant. Both professionals play crucial roles in estate planning and often work together to ensure a smooth process. Starting with one professional often leads to being referred to the other for comprehensive planning.
Question #2: How soon after someone’s death should the executor contact an accountant to file tax returns? What are the deadlines for the related tax returns?
An accountant will guide the executor on the timeliness and coordinate with the lawyer to ensure taxes are filed before the estate is distributed.
Answer #3: For inter vivos (living) trusts, you should seek guidance from both. A lawyer is helpful for legal advice on drafting and structuring the trust. An accountant is helpful for advice on the tax implications and financial management of the trust. Depending on your situation, you may also involve a financial advisor to align the trust with your overall financial goals.
Answer #4: It’s recommended to review and update your estate plan every 3 to 5 years, or sooner if you experience a significant life event. These events may include marriage, separation, divorce, the birth of a child, the death of a beneficiary, purchasing or selling property, or changes in financial circumstances or tax laws. Regular reviews ensure your estate plan reflects your current wishes and complies with legal requirements.
Answer #5: When it comes to informing others about your estate plan, consider sharing key details with:
By keeping your estate plan updated and communicating with relevant parties, you help ensure your wishes are respected and your loved ones are supported during challenging times.
For a more in-depth understanding of planning and settling an estate, sign up and download your free copy of our eBooks. Covering everything from executor responsibilities to tax filings, it gives you the tools and confidence to manage estate matters effectively.
To download Estate Planning eBook
To download Handling an Estate After Death eBook
Navigating estate planning and settling an estate requires a clear understanding of the legal and financial steps involved. The answers above are designed to address common questions, but every situation is unique. Whether you are preparing for the future or acting as an executor, professional guidance is key to ensuring compliance and peace of mind.
At GBA, our team of accountants is here to help you every step of the way. For personalized support, feel free to reach out to us today. Let us help you simplify the process and provide clarity for you and your loved ones.
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This blog is not meant to provide specific advice or opinions regarding the topic(s) discussed above. Should you have a question about your specific situation, please discuss it with your GBA advisor.
GBA LLP is a full-service accounting firm in the Greater Toronto Area, but we primarily service all of Ontario as well as the rest of Canada virtually, except Quebec. Our team of over 30 provides audits and reviews of financial statements, compilations of financial information, and corporate tax returns. We provide specialized corporate tax and succession planning for small and medium businesses, in addition to general advisory services.
If you would like to schedule a call to discuss your accounting or tax needs with one of our team members, please complete the free, no-obligation meeting request on this page.
