One of my summer cottage activities in the early evening is to watch the sunset and troll for walleyes (a.k.a. pickerel). Inevitably, I catch a rock bass — a smaller freshwater fish. At first bite, an angler will think they have a much larger fish on their line, as the rock bass is aggressive. It requires careful handling, given its spiny dorsal fin with sharp stiff rays. Getting poked by the dorsal fin would sting.
Akin to an angler inadvertently catching a rock bass, financial professionals encounter death and estate administration issues despite their primary focus lying elsewhere. Both situations require skill, whether it’s understanding a lake’s ecosystem, or the complexities of terminal returns and estate planning. Whether the scenario involves unexpected estate administration or a surprising rock bass, attention is required.
For example, consider a recent case I was exposed to. A financial professional was managing the estate of a wealthy client who passed away suddenly. The professional’s focus was on distributing assets to beneficiaries and ensuring compliance with tax regulations. However, during the process of a seemingly minor property title search, an issue emerged: a lien, by the builder, on the deceased client’s principal residence. The builder was also deceased, and the builder’s company was inactive.
Much like a rock bass biting an oversized lure, this lien carries significant implications. The financial professional must validate the lien, determine if the debt needs to be settled and possibly settle it, ensuring the property can be transferred clear of encumbrances. This unforeseen complication requires additional time, legal expertise and careful management — similar to how an angler must adjust to handle the unexpected bite, catch and release of a rock bass.
As a financial professional, it would be prudent to discuss with clients the merits of performing a title search on their properties to ensure no surprises, as liens are not an uncommon issue in estate administration.
Adaptability and problem solving
Adaptability is a critical trait required in both estate administration and the life of rock bass.
Rock bass demonstrate remarkable adaptability. These fish can thrive in various freshwater environments, from rivers and streams to lakes. They are opportunistic feeders, eating a variety of aquatic insects and small fish — as well as my lures.
Likewise, estate administrators must have the ability to pivot and adjust strategies, given they often face unexpected challenges, such as disputes among beneficiaries, unclear wills, or estate preservation for current and future beneficiaries. Estate trustees have a fiduciary responsibility and must make prudent investment decisions and manage resources carefully. This includes developing strategies for asset allocation, tax planning and succession planning, ensuring the estate’s longevity and prosperity.
Communication and coordination
Effective communication and coordination are essential in both estate administration and the social behaviour of rock bass.
Rock bass use visual signals and body movements to communicate with each other, especially during spawning, when males build and guard nests.
And their fierce initial bite has an impact on the angler’s communication. In my world, that communication is typically “I got a big fish!” Then, when I realize the weight on my line is minimal, my coordination in landing the fish is “Pass the gloves — I don’t want to be spiked!”
Estate administrators must liaise with various parties, including beneficiaries, financial advisors, lawyers and accountants. Coordination among these parties ensures the estate’s smooth administration, from asset distribution to dispute resolution.
The document typically relied on to aid in the communication and coordination is the will. Yet, some wills may have an ambiguous clause or interpretation.
For example, in a case I’m familiar with, a dispute occurred between two beneficiaries over an art collection. The will stated that the “art collection” should go to the “oldest child,” but both beneficiaries claimed entitlement. The will did not define the art collection nor specify the name of the oldest child. One beneficiary argued they were the oldest by birth and thus entitled to the full art collection, while the other insisted that certain pieces of the art collection belonged to them based on a long-standing verbal promise by the deceased. The lack of clear communication in the will led to a legal battle, with each side presenting evidence to support their claim.
While estate administration and rock bass may appear unrelated, a closer examination reveals parallels in the attention required to each, as well as the skills of adaptability, problem solving, communication and coordination. A supportive environment — such as clear communication in a will — is also a critical success factor.
Just as the rock bass thrives by effectively managing its habitat and resources, estate managers must employ similar strategies to ensure the growth and long-term success and stability of estate assets.
Michael Kulbak, MBA, CPA, CMA, TEP, is principal of Kulbak Trust Solutions in Mississauga, Ont.