With Canada Day behind us and summer in full swing, many of us are spending weekends at the cottage, out on the water or, for some, up in the air. While you’re enjoying these prized possessions, it’s worth asking one practical question: who will inherit them one day?
The good news is that you can leave a boat or aircraft to a specific beneficiary in your Will. The catch? It isn’t always as simple as handing over the keys.
Not all boats and aircraft are treated the same. Some boats are licensed pleasure craft, while others are federally registered vessels. Aircraft have their own registration and transfer requirements as well. Depending on how the asset is owned and registered, your executor may—or may not—need probate to transfer it.
That can also affect which Will the asset should fall under. In Ontario, many estate plans use both a Primary Will and a Secondary Will to deal with different types of assets. Whether a boat or aircraft belongs in one or the other depends on factors such as how it is owned, how it is registered and whether probate will likely be required.
It’s also worth thinking about the practical side. Is there financing on the asset? A marina agreement or hangar lease? And perhaps the biggest question of all: does the intended beneficiary actually want the maintenance bills that come with it?
A little planning now can help ensure your prized possessions end up with the right person—and keep your executor from navigating unnecessary paperwork along the way.
Robin K. Mann, Associate Lawyer