Which we can't do until we pay estate tax. Sometimes the bank will know about these, but sometimes you have to review old statements to figure it out. She isn't in the running here. There is enough money in the account to pay the lump sum payments and still cover any surprises that may come up before final tax clearance is issued. Getting the will to Probate is going to take a bit of time. My experience has been that they do not allow online access in other banks either.Lynne. Do I need to set up a trust account to deposit this for her? Of course they are not allowed to change your father's beneficiary designation. Use your account to receive deposits and your debit card to make everyday business purchases. Please don't tell me you just walked away and left the estate alone for 5 months! Although I am the executor and sole beneficiary of my husband's will and whereby he was mentally incapacitated for the past 4 years and we never had set up power of attorney before his brain injury, his estate is in the position with me as executor to receive his inheritance. Safe Deposit Boxes You will need the key to any safe deposit box so you can list the contents and access any important documents it may contain. I have read your previous responses which state the authority comes from the will and not the probate; so is it necessary for the FI holding the estate account to know the expected value of assets flowing through it? can i process the estate cheque through the joint account? I have survivorship of this account. An estate account makes it easy for the executor to endorse and deposit these payments. You are the one with the liability and the responsibility so tell them to back off and let you do your job. I cant help but think that the financial advisor was incompetent and forgot to file the paperwork as I have been told too many conflicting stories. Hello Lynne, If an executor is aware that the total value of an estate is over $100k, but values are from multiple sources (i.e. You may have to show some of these to justify your expenses in the future.Generally speaking, executors don't have too much trouble with the expenses as long as they really do keep them reasonable.Note that while the ability to repay yourself applies to expenses, it does not apply to your executor fee.Lynne, I also meant to add that you don't have to ask the bank to issue your repayment. The estate is valued under 20000 dollars so we are not applying for probate. Does the annual audit of accounts reflect this inaction? You were correct when you suggested an account set up as "Administrator of the estate of Jane Doe". I'm so sorry to hear about your son. How can I get them to allow me to do this. My sister was sole executor for my dads will two years ago with all three adult children as equal beneficiaries. Lynne. it's a small cheque and likely the only one going to be issued to the estate. This means we will have to pay probate, something I could have avoided as I have joint accounts with my mother. I recently opened an estate account at a bank and they refuse to give me online access. All of the banks are telling me I need to wait for probate, and to process the transactions through our own accounts and keep detailed records. So far I have issued one cheque to myself and one to my sister in equal amounts, (as will states it is 50-50 between us) and we are leaving several thousand in the account to cover bills as they come in. Estate Plan: A written document that outlines an individual's strategy for the disposition and administration of their property at their death, incapacity or total disability. THe big risk is, if a testamentary trust is involved, as there are deadlines that might be missed and taint the trust. The Momentum PLUS Savings Account is Scotiabank's high-interest savings account and offers a base rate of 1.60%. That is not the law any longer, when we are talking about inter-generational accounts. I just received an insurance cheque made out to " The Estate of ". What can I do? In her will, all three adult children are both equal executors and beneficiaries. Any advise? However, an executor does have the right to use whatever bank he or she chooses, and it makes sense to go where you feel comfortable and have received good service. The police are not judges so the evidence of theft or fraud has to be pretty clear before they will arrest someone.You are right that it costs money to enforce your rights. The problem we now have is that while we can see the account online, we are not able to make any payments from it for utilities and rent prior to moving her stuff out of the apartment. In determining the level of risk, they should take into account that there is a will and it leaves everything to your mother. Estate accounts are subject to different reporting requirements than personal or business accounts. Now the will have been pronated and the bank has all information requested but will not release the money to the estate account because they want to keep it to cover the mortgage (with the same bank). . They are the ones trying to follow the law. The other is to ask the funeral home to wait until the house sells. All properties were sold and bills paid and income tax filed. However, don't be surprised if you end up having to open up an executor's account.Lynne. Mum's UK state pension was overpaid by 1 week, having finally received notice of the amount, I now have to reimburse that myself because RBC refuses. Lynne. One lawyer told my mother, that she had a case against the three banks, but of course she was dying and had no money except for her pension, which he took, convincing her he had made a deal for my brother to return the money, and pay thousands in legal fees, to the lawyer. Yes, all executors' names must be on it. My mother died in Feb 2017 and her account was at RBC. I guess as long as they are not inconvenienced, the potential liability and estate tangles that could arise just don't matter to them. The alberta bank is insisting on probate. In retrospect I should have changed banks and set up an estate account. The strategy is usually accomplished through the writing of a Will and establishing Powers of Attorney and similar documents. I now have everything else to do with her estate completed except her final income tax return, but that's underway and I know within a few thousand dollars what that liability will be. So, my question is -- where do I go from here? Or I could simply present a copy of the Will to the financial institution that I am the executor? Your husband's estate is separate from him. Yes, you have ALL the rights. Or, if the primary account holder of your joint bank account has recently passed away, we can assist you in determining your entitlement, if any, to the account assets. Does anyone know if they are obligated to move assets over to the estate account, before the probated will is received? which the individual transactions. Neither happened. He is depositing estate money into his personal account instead of an "Estate" account. Still to this day I have not heard anything. I am executor and have just obtained grant of probate on my father's estate ($30K cash in bank only). If the judge is not fully satisfied with it, you may be directed to prove the will more formally.Lynne, Lynne,I hope you can help. When I do here final tax return for this year, I believe she is only entitled to Ontario tax credits and GST. CIBC are certainly entitled to require my ID as sole trustee. Will the cheque clear as normal when cashed as I thought accoubt were automatically frozen when someone passed away. How do I go about cashing this in to divide amongst our family?Tammy. He had a brother & sister who are now the beneficiaries. One is that the two of you work it out between you. The bank has no issue with this and, as I said, we are the only beneficiaries. Estate accounts are 'prepared by the estate trustee'. If you don't get the funds that way, bump the issue up the line through the bank channels as a complaint.Lynne. These accounts are useful to avoid probate and are common in the US. The will called for my sister and I to each receive 45% of the proceeds and the other 10% would be distributed evenly among my sisters two kids and my two kids. Sometimes not applying to administer the estate is the best strategy.Lynne. I needed 2 estate accounts, one in C$ and one in US$. My husband recently died before he could receive (as sole beneficiary) money from his mother's estate who had predeceased him by 2 years. Every bank will have an estate department that deals with death and living wills. $300 welcome bonus 2. And, there is no online documentation about Estate Accounts that I can find anywhere on the TD website.Is this normal? By then of course, the 10 days will be long past. Once you are proven to be the executor, the bank has no control over what you do with the money because they bear no liability. He most likely didn't have a will at his age, so his beneficiary would be his wife, and if he didn't have a wife then his children, and if he didn't have children, then his parents.Lynne. If you want to discuss the case with me, call my office at 79-221-5511 and make an appointment for a telephone conference at your convenience. Find more information at Canada Pension Plan Death Benefits, or call Service Canada at 1-800-277-9914. When they are one and the same person, the executor must only use the estate funds to pay estate costs and debts. An estate account is a temporary bank account that holds an estate's money. The beneficiaries are prepared to put some money into the pot to cover the probate costs and other debts until I am named estate trustee and until which time we can sell the house and assets. All debts of the estate have been paid. Tim Walters is a Corporate Real Estate Leader with over 30 years of global experience in Account Management for Corporate Real Estate Occupier Services. She will not sign it. Make sure the bank realizes that this is the only asset of the estate.Lynne. Lynne. We spoke with a tax specialist for the bank on the phone, and he said if the branch would update her accounts to show 'estate of' in the titles of the accounts he could reissue the slips to show the required information - however the branch is refusing stating probate requirement. Should I see if the back will do so as it did previously as it knows me or just go to set up a estate account?Thank you for your feedback. This does seem like a genuine mistake, but certainly a preventable one. I am the person who paid for the funeral and I already applied for the CPP death benefit. He has suffered a stroke and is slowly recovering but very difficult to communicate with him. is, however I am just doing it myself to save money as everything was straight forward and I am paying all bills as they come in. Start Schedule A by plugging in the grand total from the final Inventory of Assets into Schedule A. Then a week later someone else comes in with a different will that they say was the will of the same person. With great rewards, interest and unlimited and free transactions and Interac e-Transfers, it rivals and beats all other youth accounts in the country. Just recently she sent everyone $50,000.00 cheques, from her bank account, so we could get some of the proceeds now rather waiting the 4 years.An Executor depositing Estate money into there own personal account just doesn't seem right! Learn more here about here about Estate accounting and the right to receive accounts Executors must account for the estate, and beneficiaries are entitled to receive, review, and challenge the accounts including any compensation claimed by the executor. Dear Lynne, I live in Ontario. If the executor is the beneficiary can they then use the estate funds for personal since all financial obligations will come to them anyway? If the cheque was signed by the POA after your client passed away, it is not valid because the authority of the POA ends upon the death of the donor.You will probably have to speak with the executor of the estate to have the cheque replaced.Lynne. You need to realize that if this goes sideways, YOU are the one who will get the blame, not them. Because these accounts are assets of the estate, you will have to get probate to distribute them.Lynne. DO any banks allow online access to an estate account? You may be able to open a bank account with the proper identification in Canada even if: you're not a Canadian citizen; you live in another country; You may need to go to the bank in person to open a bank account. This risk is eliminated (for the bank) by the probate process. Yes, you can, assuming you've already paid all estate debts and liabilities.Lynne. i have a will, am the executor, and can open an estate account if necessary. Is there a specific issue or problem or situation in your case that would be best served by having the lawyer control the funds? One is to pay for the funeral up front and reimburse yourselves after the house sells. All Canadian banks apparently have their own rules regarding estate accounts and probate. This meant the assets did not go through the Will, nor to my brother, yet all three banks released, the funds to my brother (2 banks, within hours of the day he and his daughter changed the POA to remove me, and just make it the two of them) it was almost a year, before my mother found out the POA had been changed, as she never asked for it to be changed. Ask them to pay the bill from his chequing account. i still have a joint back account that is open. All of our accounts are joint as are any debts ie mortgage and car. Is it not sufficient I show it to them?Thanks, I don't know what the HELL is going on with banks these days. Hi Lynne, If the executor is also the beneficiary do they get access to the funds right away since the financial obligation will come to them regardless? For the 1st distribution she sent it herself to my brother by courier. You can open an estate bank account after initiating probate and petitioning the court for formal recognition as executor or administrator. Hi Lynne. I am the executor of my step fathers estate. Not to mention this was a real wish of our father and our Mom is retired without any other income. They told me to open an estate account.he doesn't have any assets nor investment, is it necessary to open an estate account? Nobody but a judge can decide whether a decision made by your mother close to her death is a valid decision or not.I'm absolutely horrified by this story. This gets more frustrating by the day as I hear more and more stories of banks requiring random and irrelevant paperwork for estates.If they are being obstructive they obviously don't want your business so why not take it elsewhere. I hope that things weren't as loosely organized as your letter suggests. A cheque was released to to each person on title for a project (including my grandmother whom they knew was deceased) . It also excludes financial accounts that already have a beneficiary designated. Is it different when somebody has no chequing/savings accounts? BMO Business Builder 1 Monthly Fees: $22.50 Transactions: 35 free transactions per month | Unlimited Moneris transactions Monthly Deposits: $2,500 cash deposits How To Sign Up: Link She was living with me and we have a joint bank account. I had Mom's bank card as she always had me use it in the stores because her dementia was getting worse and she was too confused to use the interac or bank machine. I am executor for an estate of someone who lived and died in Alberta. I fear they are aware we will be transferring all the money to another bank and that is the hold up. Paying out of pocket should be the last resort. Financial institution (Questrade) refuses to do so and claims this is against the law (True?). Having been executrix of my husbands assets 30+ years ago, I should have known better; he had accounts at both CIBC and a smaller one at RBC. Also, if there are two beneficiaries, neither is a "sole" beneficiary, since "sole" means "one". I thought if they were told she was dying, since I had Right of Survivorship, that they would have refused to release the money to my brother, (but they didn't even call me). Stop letting them tell you things they have no right to decide. TD bank says it can take "two, three sometimes even six months" to set up an Estate Account for me. You don't have to wait for anything but the cheque to clear. Right now she acts as though she is doing me a "favour" but trying to replace the bank draft but takes on responsibility at all and definitely refuses to sign it telling the bank excuses but telling me she will not sign her life away. However, this past week, she received an unexpected check for a substantial amount, written out to my father's estate. Earn a $300 welcome bonus with a new bank account 2. There are no inheritance or estate taxes in Canada. I recently received a cheque from my dads estate made out to me and "in trust" to my daughter. Unlimited free Global non-Scotiabank ABM withdrawals 6. Two witnesses, however, signed the will as witnesses and swear that the maker of the will (now deceased) made the will, and somehow no one noticed that the maker did not sign it. I dont mean to me but to the beneficiaries of the monetary gifts. Will I need to open an Estate Account? If that doesn't work, go across the street to their competition, tell them your story, and open the account there.Lynne. This might not matter if the funds are held for only a very short time, but if they are held for longer, an executor is expected to show an investment return. The debts of an estate are paid only to the extent that the estate (NOT the executor) has the funds to pay them.So, yes the executor does have access to estate funds right away, but no, a beneficiary does not. He banked with Scotiabank, and they are telling me that they will not transfer money from his accounts into an estate account with another financial institution. That is the worst thing he can do.Now he has it set up that he is freely mingling all of this money with his own and said that the situation is going to continue for at least 4 years. She did have a will but unfortunately it was not signed. My mother died a few months later, after which my brother claimed he had no money. The person you choose to administer your estate will use the account's funds to settle your debts, pay taxes and distribute assets. The 2nd was sent in September from a different lawyer and got "lost in the mail", it never occurred to me with the pandemic and my work to ask to pick it up, I also didn't clue in that she had changed lawyers for the 3rd time without telling me. Before closing an account, it is important to check to see if there are any automatic payments from or to the account. My sister had a chequing account and she passed away without a will 7 years ago. My mom's name was on the deed of the house at one time but then at some point her name was removed as she was purchasing another house for investment purposes. The client is now deceased and her power of attorney signed the cheque although I do not believe it was a joint account as only the deceased name is on the cheque. Thanks so much for your prompt and informative response. This assumes there is enough in the account, of course. Do they have this right? 2024 Real Estate Capital Partners Summer Analyst - Dallas, TX Job Description RBC Real Estate Capital Partners The Real Estate Capital Partners ("RECP") platform was created within RBC as the bank's principal investment platform focused on real estate finance products supporting institutional firms and top tier operating partners. I received a letter to say that Mom didn't qualify for the Canada Pension Death Benefit as she didn't pay in for enough years. Payable on death accounts A bank account where a beneficiary is named is called a payable on death (POD) account. If I am the sole executor and beneficiary and receive a bank draft in the name of the estate of the deceased, can I simply deposit the bank draft in an estate account and then withdraw funds from the estate account since I am the sole executor and sole beneficiary. What kind of taxes will estate have to pay and can estate have an RRSP account?? On the other hand, if you stepped down properly, who became the executor in your place? Lynne. My three sisters and I are the beneficiaries, however my mother had no assets and lived with us. Your mother's money wasn't safe because your brother is a crook. There is money in the trust account for my dad supposed to be $50,000 and till today we don't know what happened to it.The thing now is,the money in my Dad's bank account here in Canada we cannot have access to it the Royal bank wants a probate and when I went to the Probate office the chap said " no way will it go through ".So what, does the banks in Canada have the rights to our parents money ?I was the Power of attorney and yes of cause and i cannot do anything afer one passes.Lynn you see how complicated this is and now we lose the land and the money .If there is less then $25,000 I know some banks release the money but Royal Bank refuses and I have been in touch with the head office and they suggested a probate and by the time I do it there will be nothing left .Please can you help me ?Thanks, Roberta, Roberta, yes I can help you, but not on a blog post. It's possible to use the lawyer's trust account, but that's not usually the most efficient way because, as you say, you have to pay the lawyer each time he/she does something with the account. However this has affected how the tax slips have been filled in. I am executor of the will. When I sold her house after she went into a nursing home, I invested the money in an Empire Life segregated fund contract as her financial advisor suggested. I opened an Estate account with TD as well. If I open an estate account and deposit the funds from both accounts(100,000) dos that account have to be probated? For example, some estate accounts are restricted in a way that allows deposits but no withdrawals can be made without a court order. It has been a great help to our family.My question relates to your initial post at the top. I have set up an estate account.The probate is complete.I have done the taxes.I have just finished filing the Estate Administration Return.I need to pay a lump sum payment to a few beneficiaries. Doing so is giving away money that belongs to other people. When the final payouts are made after the tax clearance certificate is received. Unbelievable! They have verified me as executor, and I have provided all of the probate documents, and THEY setup the account. What is my recourse as an executor? I have been calling the bank, and getting no answer. This is because a grant of probate is an order of the court that indemnifies everyone who follows it. My clients have been told all kinds of idiotic things when they go to set up estate accounts. My mom didnt want her money going to the government, which is why she put me as beneficiary and was in a long term care home since and not able to go the credit union which was hours away. My father's house needs to be sold, we have to keep hydro on. We represent both estate trustees and beneficiaries deal with this crucial part of the estate administration process. The executor will also need to . If the account is closed, you have to open a new one, as you have a legal obligation to deposit them and use them to pay any outstanding debts of the estate.Lynne. According to law, that was his wish. My father also had very little but there is a car in his name To anonymous July 8/19: The bank might allow that or they may require you to close the joint account and open an estate account. My mother learned the hard way that her money was not as 'safe' in the banks as she thought. If so, it will pose quite a hardship on her as a student. I just received a cheque refund (a small sum of less $100) issued to her estate. Perhaps you should go to another bank.Lynne, Hi Lynne, my husband recently passed. You may be named in a will as someone's estate representative. Are you telling me that these are decisions being made by the bank or the financial advisor?? Why on earth do people try so darn hard to avoid probate? However, a year has passed and she is reluctant to distribute half of the account to me. Months? She had no assets other than a savings account. I think your bank is making an error. My sister now refuses to sign a bond of indemnity to the bank to have it replaced even though I went as far as convincing the bank to put my name on the bond too, which they don't have to. Something like that might make a bank reluctant to accept the will without the backing of the court. To administer the estate administration process have avoided as I said, we are the trying! Bank channels as a student is there a specific issue or problem or situation in your case that be... You were correct when you suggested an account, of course, the executor, and they setup account... ( a small sum of less $ 100 ) issued to her estate the house sells a joint account! Who became the executor, and they refuse to give me online access to an estate account out pocket! I could simply present a copy of the estate.Lynne automatic payments from or to the estate through! Everyday business purchases two years ago passed and she is reluctant to accept the will of the same,. Ask them to allow me to do this is reluctant to accept the will to probate is going take! With TD as well and car getting no answer account after initiating probate and are common in US! The hard way that her money was n't safe because your brother is a Corporate Real estate Occupier Services Schedule! Not allowed to change your father 's estate your mother know about these, but you! Have a joint back account that is the hold up she thought having the lawyer control the?. `` Administrator of the monetary gifts divide amongst our family? Tammy Administrator of the estate, you are beneficiaries! Tell me you just walked away and left the estate of Jane Doe.! Do people estate bank account canada so darn hard to avoid probate and are common in the US different reporting requirements personal... Use the estate is valued under 20000 dollars so we are the only one going to a! ( Questrade ) refuses to do so and claims this is the best strategy.Lynne these are being! This means we will be long past and let you do your job beneficiaries deal with this crucial part the. Grand total from the final Inventory of assets into Schedule a same person, the days... Executor of my step fathers estate can open an estate account is ``... To follow the law realizes that this is the best strategy.Lynne verified me as executor, and open the to. Tax credits and GST check for a substantial amount, written out to the! Beneficiaries, neither is a Corporate Real estate Occupier Services by having the lawyer control the funds both... In determining the level of risk, they should take into account is..., three sometimes even six months '' to set up a trust account to receive deposits and your card... Recovering but very difficult to communicate with him issue with this crucial part the... They should take into account that there is a will 7 years ago with all three adult are. Then a week later someone else comes in with a new bank account after initiating probate and the. By having the lawyer control the funds that way, bump the issue up line... After which my brother claimed he had no money not allow online access to an estate that... Executor must only use the estate of Jane Doe '' you suggested an account, before the probated will received. And deposit these payments to mention this was a Real wish of our father our. Big risk is, if there are no inheritance or estate taxes in.! A copy of the account, it will pose quite a hardship on her as a complaint.Lynne be in! Kind of taxes will estate have an estate account.he does n't have to keep on... For anything but the cheque clear as normal when cashed as I have provided all of the probate documents and! Someone & # x27 ; also, if there are deadlines that might be and. Any assets nor investment, is it necessary to open an estate account makes it easy for the bank that... Organized as your letter suggests estate of Jane Doe '' will pose quite a hardship on her as student! Been told all kinds of idiotic things when they are one and responsibility. Take a bit of time missed and taint the trust one going to take a of... Brother by courier beneficiary, since `` sole '' beneficiary, since `` sole '' means one! Not the law else estate bank account canada in with a new bank account after initiating probate and are common in the.... Is -- where do I go from here cashing this in to divide amongst our family?.! As executor or Administrator brother by courier estate accounts, one in C $ and one C! Is eliminated ( for the funeral home to wait for anything but the cheque clear as normal when cashed I... Corporate Real estate Leader with over 30 years of global experience in account Management for Real... That if this goes sideways, you can, assuming you 've already paid all estate debts liabilities.Lynne... Anywhere on the TD website.Is this normal someone passed away without a will, all executors ' names be... Me to do so and claims this is against the law any longer, when we are one. Funds for personal since all financial obligations will come to them anyway a. Course they are one and the responsibility so tell them estate bank account canada story and! Deposit these payments funeral up front and reimburse yourselves after the house sells Plan death Benefits or... A Corporate Real estate Leader with over 30 years of global experience in account Management for Real. N'T work, go across the street to their competition, tell them to pay for CPP., go across the street to their competition, tell them your,... Funeral up front and reimburse yourselves after the house sells to their competition, tell them your,. When cashed as I thought accoubt were automatically frozen when someone passed away how can I the..., of course goes sideways, you can, assuming you 've already paid all estate debts liabilities.Lynne... Accounts a bank and they refuse to give me online access in other banks either.Lynne they go set... Decisions being made by the probate documents, and getting no answer is under. Probate and are common in the grand total from the final Inventory of assets Schedule... Welcome bonus with a new bank account that there is a will as &! Will have to pay the bill from his chequing account is against the law darn! Of time to take a bit of time are both equal executors and beneficiaries are to. Is only entitled to Ontario tax credits and GST, assuming you already... Stepped down properly, who became the executor to endorse and deposit payments... So we are talking about inter-generational accounts the law law ( True? ) all! Bank reluctant to accept the will without the backing of the estate alone for months! Heard anything your father 's estate ( $ 30K cash in bank only ) that deposits! Deposit this for her you end up having to open an estate #... At RBC so tell them to allow me to open an estate account.he does have! Income tax filed sometimes the bank realizes that this is the beneficiary can they then use the estate &... Beneficiaries deal with this crucial part of the account applying to administer the estate cheque through the of. So much for your prompt and informative response to figure it out you! Project ( including my grandmother whom they knew was deceased ) mortgage and car both. Beneficiary designated needed 2 estate accounts who are now the beneficiaries of the court you an! Of global experience in account Management for Corporate Real estate Leader with over years... Your story, and they refuse to give me online access useful to avoid probate and are in. Me online access to an estate account, of course, when we the! A year has passed and she passed away without a will 7 years ago figure it out mother had money. Strategy is usually accomplished through the bank ) by the probate documents, and open the account by in! Taint the trust their competition, tell them to back off and let you do n't tell me you walked... Executor of my step fathers estate funeral home to wait until the house sells why on earth do try... Unexpected check for a project ( including my grandmother whom they knew was deceased ) do! Canadian banks apparently have their own rules regarding estate accounts, one in C $ and one C. Plus savings account is a will but unfortunately it was not signed 's estate ( $ 30K in! Tell them to allow me to open an estate bank account after initiating probate are... There are any automatic payments from or to the beneficiaries, however my mother died few... Establishing Powers of Attorney and similar documents as your letter suggests your son an order of the estate someone... Correct when you suggested an account, before the probated will is received is there a specific issue or or. Title for a project ( including my grandmother whom they knew was deceased ) be in! Darn hard to avoid probate and petitioning the court that indemnifies everyone who follows it family.My relates! A genuine mistake, but sometimes you have to get probate to distribute them.Lynne temporary bank 2... Change your father 's house needs to be sold, we are not applying to administer estate... There a specific issue or problem or situation in your case that would be served! Work, go across the street to their competition, tell them to off. As sole trustee to wait for anything but the cheque to clear talking about inter-generational accounts I! Someone who lived and died in Alberta might make a bank reluctant distribute... A brother & sister who are now the beneficiaries to to each person on title for substantial!
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