Van Halen was an iconic American hard rock band, which—among other things—was known for its energetic live shows. In the 1980s, the band had an extremely curious condition in their contract for live shows. The organizers at the venue where the show was happening had to provide them with a large bowl of M&M candies containing all the standard colours except brown. The original M&M candy had a semi-sweet chocolate filling. The closest Indian equivalent of it would perhaps be Cadbury’s Gems chocolate. Now this condition wasn’t just randomly introduced into the contract. Before every show, David Lee Roth, the lead singer of the band, would personally check if the venue had made sure that the bowl of candies had no brown coloured candies in it.
What was the idea behind this? As Daniel Simons and Christopher Chabris write in Nobody’s Fool: Why We Get Taken In and What We Can Do about It: “His logic was that if the organizers failed to follow such a simple instruction, they shouldn’t be trusted to have safely installed all of the rigging, wiring, staging, lighting, and pyrotechnics for a complex show.” And if the organizers failed the brown M&M candy test, the band paid more attention to the staging of the concert. As the authors point out: “Van Halen’s rider was what scientists might call a positive control, an extra experiment that checks whether everything is working as it should.” The point being that it wasn’t possible for the band to check everything for themselves before a live show. At the same time, the candy test was better than taking the assurances of the local organizers at face value. As Simons and Chabris point out: “Simple checks are never perfect, but blind acceptance is a terrible alternative.”
This example has an investing lesson in it as well. But before we understand that we need to understand something termed as the truth bias. As Cass R. Sunstein, an American legal scholar, writes in an essay: “People tend to think that what they hear is truthful, even if they have excellent reason not to believe what they hear.” Now this makes sense primarily because of two reasons. First, most of us are speaking the truth, most of the time. Second, it’s evolutionary. If human beings start questioning everything and anything, most of what keeps life going—the everyday decisions and transactions we make—would unravel pretty soon. Nonetheless, the truth bias—trusting what we are being told—hurts us when during the course of investing we become victims of a scam or even a misleading sales proposition.
Take the case of individuals who end up investing in Ponzi schemes which promise very high rates of return. A Ponzi scheme is an investment fraud where the first round of investors are paid using money being brought in by the second round of investors and so on. It keeps running until the money being brought in by the investors into the scheme is more than the money leaving it, and when the situation reverses, the scheme collapses.
In almost all these cases investors get focused on the high rate of return, believe that the return will be delivered and end up investing in the scheme. In that sense they become victims of the truth bias. Of course, there is no way that they can completely verify every piece of information they come across regarding the investment scheme. That’s not possible. But they could do what Van Halen did. Carry out a simple check before investing. And what would be this simple check? It can be a simple question to the individual selling the scheme: “How are you offering such a high rate of return in comparison to everyone else?” Just this thought would make sure they don’t invest in the Ponzi scheme.
Or take the case of what many wealth managers and relationship managers do these days. They pass off investment-oriented insurance schemes or even equity mutual funds as schemes which offer guaranteed returns. A simple way to deal with this situation is to ask where does the guarantee appear in writing.
The moral of the story as Simons and Chabris put it is, “Accept less, check more,” especially when it comes to investing one’s hard-earned money.
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.
