How to Handle Survivor Benefits and Equalization?

Planning for death can feel awkward and surreal, but it is the ultimate act of love and protection for you and your family members. Matters of survivor benefits and property division can feel overwhelming but it doesn’t have to. You might worry about your own financial stability and how to fairly distribute assets. Don’t worry. We’re here to guide you through the process with clarity and expertise.

Survivor benefits provide financial support to the deceased person’s dependents, including but not limited to their partner, kids, and siblings. These benefits can include payments from the Canada Pension Plan (CPP), employer pension plans, or private insurance policies. 

Courts have ruled that survivor benefits are a form of future income and can be treated as a pension. Like any other pension, they constitute property and must be included in the equalization calculations with other assets.  

When a loved one passes away, the division of property must be handled according to the law. Equalization ensures that both parties receive a fair share of their matrimonial property. While calculations and negotiations can be complex, the right family lawyer in Brampton will guide you through the process. 

Begin by listing all of your assets and benefits. This includes bank accounts, real estate, personal property, pensions, and insurance policies. Accurate documentation is the most essential step of the process. 

A wills lawyer will not only provide you invaluable guidance, but also help you understand your rights, obligations, and the steps to take.  

Surviving members must inform the relevant authorities, such as the Canada Pension Plan (CPP) and your employer, about the passing. This will initiate the survivor benefit claims process. Prompt notification helps avoid delays in receiving benefits.

Determine the value of the survivor benefits as they will be included in the overall asset pool subject to division. 

In the last step of the process, you and your family lawyer will add the value of all assets, including survivor benefits, and divide by two. Each party should receive an equal share of the total value. It might require negotiation and adjustment to achieve fairness, but it is usually straightforward. If there are other parties involved, kids or siblings, the negotiation might involve some back and forth. 

Challenges and Considerations

Handling survivor benefits and equalization comes with challenges you should be equipped for. Survivor benefits may have tax implications. Consult with a tax professional to understand the impact on your financial situation. Additionally, if disputes arise during the equalization process, mediation or legal intervention might be necessary.

For more information, you can visit the Canada Pension Plan website. If you have questions or need assistance, our experienced wills lawyers at Sterling Law in Brampton are here to help. With decades of experience, we offer the expertise you need to support your family during their darkest hour.

Book a free first consultation with us today

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