Estate and Personal Planning: An Overview

Estate and personal planning is the process of setting up legal instructions for your incapacity, health care directive and death… before any of these circumstances happen to you. Planning is achieved through three key legal documents: Will, Power of Attorney and Representation Agreement.

Last Will & Testament (Will)

Your estate is comprised of the assets that you own, in your name alone, at the time of your death. This includes money, property, household furnishings, vehicles and other personal possessions. Property that is held in joint ownership with other person(s) and accounts with designated beneficiaries – TFSA, RSP, life insurance – are not included in the estate. When you die, your Will is used to provide your final instruction for distribution of your estate to the beneficiaries of your choosing.

Tip: If you die without a Will, the Wills, Estates and Succession Act (WESA) governs how your estate will be divided.

That said, a Will is not just for people who have significant assets. A Will is also your legal tool that allows you to appoint a guardian for your minor children (under nineteen) and to grant authority to an executor, whose role will be to apply for probate and administer the Will in accordance with your instructions.

Power of Attorney

A Power of Attorney appoints person(s), to handle legal and financial affairs on your behalf, while you are alive. Your named attorney(s) can use the POA for tasks like paying your bills, depositing or withdrawing money from your bank, making investment decisions, dealing with insurance companies and CRA on your behalf, and selling your house.

There are different types of POAs, but the most common is the enduring power of attorney, which is valid for your entire lifetime (until revocation or death) – even if you are incapacitated. Other types of POAs can be set up to take effect only in certain circumstances. Regardless of the type, a POA confers serious authority and must be given to trusted persons only; but, with the right considerations and advice, a POA can become one of your most critical and relatively inexpensive tools for your future financial planning.

Tip: spouses do not have automatic authority to sign documents for each other. If you own a home with your spouse and your spouse is incapacitated, you cannot sell or refinance the house without going through an expensive and time-consuming court process to get authority by way of committee.

A Representation Agreement

A Representation Agreement allows you to appoint person(s) to advocate for you and to enforce your medical wishes (health care and personal care) in the event that you become unable to make decisions for yourself. This includes matters relating to therapeutic, preventative, palliative, diagnostic, cosmetic, surgical and medicinal treatments and procedures, as well as matters relating to shelter, diet and social and vocational activities.

Tip: many assisted living facilities require their residents to have a Representation Agreement and POA in place before they are permitted to move into the facility.

Contact Krische & Co. Notaries

Estate & personal planning can be overwhelming, but we make it easy to get started. First, contact our office to book an appointment. There is no need for you to have all the answers at our first meeting (but if you do know what you want already, that’s great too) or for you to do lots of preparation before our appointment. We can get started with just two pieces of identification and a conversation. Our initial meeting typically takes just 45-60 minutes and is an opportunity to ask questions, get advice and give us your instructions. At your second appointment, we review the documents together and attend to their proper legal signing.