Powers of Attorney A Power of Attorney is an often overlooked but important part of a complete estate plan. A Will ensures that your financial affairs are managed according to your wishes after your death, but what happens in the event illness, an accident or an extended absence makes it impossible for you to manage your own affairs while alive? A Power of Attorney can provide for the proper management of your property and financial affairs should you become mentally incapable.
It is a document, separate from your Will, in which you authorize another person or a trust company to manage your financial affairs on your behalf. Your spouse or a family member will not automatically be able to deal with your property (your spouse may be able to deal with joint bank accounts but would not be able to sell or mortgage a jointly owned home or other real property.) A Power of Attorney can cover all of your assets or can be limited to only certain assets or to a specific period of time, such as when you are out of the country on an extended trip. It may also authorize someone to continue acting on your behalf should you become incapable of managing your own affairs. An attorney’s tasks may be time-consuming and complex – appoint someone you trust with as the skills and knowledge to manage your assets. A spouse, adult child, lawyer, accountant, family member or friend may be appropriate, depending on your circumstances. Learn more about Powers of Attorney Will planning
You should have a valid Will in place to direct your property distribution after your death. If you don’t have a Will, your province of residence has rules to determine who is entitled to your property. There will also be significant additional costs and delays to your estate.
Your Will should plan for both the expected and the unexpected. It should accommodate your spouse and children surviving you, and what to do if one of your children dies leaving a young grandchild to provide for.
Review your Will every five years. More frequent reviews might be required if circumstances change, for example, upon a death or a birth. Note that marriage may result in revocation of your Will.
Appoint an executor who is trustworthy, knowledgeable and can spend the time required to properly administer your estate. Consider appointing a trust company to act as executor or co-executor if suitable persons are not available or you wish to spare your loved ones the stress of administering your Will.
Inform your executor of your wishes and ensure they can easily access your original Will. Don't keep the original in a safety deposit box if you are the only person who has access to it!It is best to use a lawyer who specializes in estate planning to prepare your Will, particularly if your estate is large or complex. Your lawyer may identify planning opportunities that can help you save tax for your estate and beneficiaries. Tell us if you need an introduction to a trusted estate lawyer.
While you’re considering your family’s future, think about whether you should purchase more life insurance to provide additional financial security for your family. Learn more about Will Planning