Recently I have had several agents raise questions on a clause in an Estate sale which referred to first dealings and the fact that probate might not be needed. So what is a â€œFirst Dealings for Estate Purposes.â€
The requirement in Land Titles is that upon the death of an owner, the estate trustee must obtain probate. The conversion of properties from the old registry system to Land Title has lead to an exemption from the requirement for Probate for these converted properties to Land Title Qualified.
The First Dealings Exemption is applicable if the deceased acquired the property while it was registered under the registry system and was subsequently converted to Land Title Qualified and the deceased still owned the property, then the owner will be exempt from the requirement for probate. This First Dealings Exemption will still apply as long as the dealings do not transfer title, such as mortgages and discharges.
The exemption will still apply if a joint tenant has died on the registration of a survivorship application will not vitiate the first dealings exemption for the survivor. Inter-spousal conveyances due to the dissolution of a marriage will not disqualify the owner from the First Dealings Exemption. This exemption is only available where there is a Will and where the property is in the Land Title Qualified.
Knowledge is Power, which results in more business!Â Â If you have any questions or concerns, please feel free to contact us at your convenience. If you have any suggestions for future topics please let us know.
Prepared by Don Travers, Solicitor with Paquette & Travers
Contact toll free: 1-877-744-2281 Online: www.paquettetravers.com
Watch for more Travers Tidbits to follow each month