Estate Planning
While most of us don’t like to contemplate our own mortality, the old adage still holds true: you can’t take it with you. Estate planning can however bring peace of mind by giving you the tools to protect your legacy and the interests of your family, both in the short term and with an eye to the future. An estate plan can include any number of the following:
1. Will; the most typical legal document in which you set out what you want done with your “estate” when you die. Your “estate” may consist of any real property, bank accounts, investments, personal items and other assets that you own at the time of your death. If you pass away without a will (“intestate”), the distribution of your estate and appointment of an administrator to oversee that distribution is governed by legislation (Wills, Estates and Succession Act here in BC) in which you have no say.The purpose of a will is to pass on your assets to your loved ones according to your wishes and to appoint a personal representative whom you trust to administer your estate in accordance with those wishes. A will also allows you to set out who will be the guardian of your minor children.
2. Power of Attorney; a legal document, which allows you to appoint another person (an “attorney”) to make financial and legal decisions on your behalf (see the Power of Attorney Act). The powers granted can be immediate or can be for a specific period of time (such as while you are away on vacation), and you can choose whether the powers continue in the event you become mentally incapable (“enduring power of attorney”) or not. This can be a very helpful tool for when you are out of town, or suddenly become ill, or would like help with the day-to-day management of your financial affairs.
3. Representation Agreement; a legal document which allows you to appoint another person (a “representative”) to make personal care and health care decisions on your behalf (see the Representation Agreement Act). These agreements can be useful in the event of illness, particularly as we age and require more comprehensive and extensive care.
In addition to the above, there are a number of ways to organize your affairs so that certain assets, such as your house or bank accounts, pass directly to whomever you choose rather than passing through your estate. This can be done through setting up joint tenancies with right of survivorship. “Alter ego trusts” can also be created in some cases to by-pass the usual probate and estate administration process.
Each person is unique and so are his or her estate planning needs. We can help you to organize and put an estate plan into place, which meets your individual and family needs and where possible, minimizes estate costs (such as probate and administration fees). If you are in need of advice on estate planning matters, we encourage you to contact us for a consultation to review your case.
