Saskatchewan’s top court ruled this week that regulations passed by government during a trial three years ago limit the use of certain policies for investment.
Author of the article:
Alex MacPherson • Saskatoon StarPhoenix
Saskatchewan Attorney General Gordon Wyant speaks to reporters in Regina, Sask. on Dec. 9, 2020.Photo by BRANDON HARDER /Regina Leader-Post
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Saskatchewan’s attorney general says he is “pleased” with a decision from the province’s top court, which sided with three large insurance companies, ruling that new regulations prevent some of their policies being used for unlimited investment.
The province introduced those regulations during a civil trial over the policies, which are held by a group of investors, three years ago, after lobbying by Manufacturers Life Insurance Co., one of the companies involved in the case.
In a prepared statement, Attorney General Gordon Wyant noted the Court of Appeal for Saskatchewan determined the regulations capping contributions apply to all insurance policies since they came into effect.
The regulations “continue to provide important consumer protection by ensuring that insurers do not engage in conduct that undermines their financial viability” or that interferes with their obligations to policy holders, he added.
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Wyant said he could not comment further, as the case may be appealed. A request for leave to appeal to the Supreme Court of Canada was considered likely, regardless of how Saskatchewan’s highest court ruled.
A lawyer representing Mosten Investment LP, one of the three partnerships that own the policies in question, said he was “disappointed” the court set aside the original trial judge’s decision that the regulations do not apply to its policies.
“The result permits the interference by the government in the contract between Mosten and Manulife and unfairly denies Mosten the benefit, without compensation, of a contract issued by Manulife decades before the regulations were passed,” Ronald Miller said in a statement.
According to the court, those rates “well-exceed what is currently available under comparable investment products.”
The partnerships that own the policies and are named for Saskatchewan towns — Mosten, Ituna and Atwater — contend that there is no limit on the amount of premiums that can be paid into the policies’ investment accounts.
The three insurance companies, Manulife, BMO Life Assurance Co. and Industrial Alliance Insurance and Financial Services Inc. say the policies were never intended to be used that way, and doing so could bankrupt them.
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The case was tried at Court of Queen’s Bench in Saskatoon in 2018.
After the trial concluded, but before the judge handed down his decision, the provincial government, after being lobbied by Manulife, quietly introduced new regulations aimed at ensuring capping of premiums paid into all policies.
The government was criticized for interfering in a live trial, and then-Attorney General Don Morgan subsequently acknowledged it could have been more transparent about its actions affecting the case.
The new regulations led to a second hearing, after which the judge concluded that while they did not apply retroactively, the policies in question could not be used for “unlimited stand-alone investment opportunities.”
The investors and insurers filed appeals and cross-appeals, and the Saskatchewan Court of Appeal heard the case over threedays in January 2020. The court’s decision was handed down earlier this week.
In their unanimous decision, Justices Brian Barrington-Foote, Neal Caldwell and Jerome Tholl found that the policies owned by two of the three investment partnerships, Mosten and Atwater, “do not set a limit on the amount an insured may invest.”
The judges also found the original judge erred, and that the regulations introduced during the trial three years ago apply to all life insurance contracts, “including the insurance contracts that are the subject of these appeals.”
All three insurance companies issued statements welcoming the ruling, which they said limits deposits into life insurance contracts.
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Miller noted in his statement that Mosten was “pleased” the court found it has the right “to invest without limit in the investments provided by the side account” of its Manulife policy.
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TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
