September 2015 - Garton & Harris

Advantages and risks of a power of attorney outlined

September 28, 2015/in Power of Attorney /by gartonandharris

British Columbia seniors may have questions about what the advantages of having a power of attorney are. You want to know the risks as well. There are certain overriding premises that are found in researching this subject.

Having a power of attorney makes it clear to everyone who is responsible for your property, assets and money if you are incapable of managing these on your own. This is applicable to you even when you are temporarily incapacitated. The person you choose has to manage your assets to your benefit and has to be able to show proof and documentation that he or she did his or her best on your behalf if asked to do this. You need to be able to completely trust your power of attorney because he or she will be in charge of your property if you can’t be.

Is this person flexible and available? If his or her life is so busy that he or she can’t commit to taking care of your company, assets, accounts and bills while you are not able to, you may want to discuss this with your lawyer and think about another person.

The risks of having a power of attorney in place include the possibility that this person will mismanage your assets and property if he or she is not trustworthy. If this person cannot be trusted to make decisions that will be of assistance to you, then you may want to choose someone else.

Is the directive that is in place not specific enough? Is it too restrictive? Not having enough information or being too limiting are two risks that you may want to discuss with your lawyer.

Estate administration can be simple

September 19, 2015/in Estate Administration & Probate /by gartonandharris

Estate administration is something that every person needs to think about, no matter what type of assets they have, small or large. To the people that you will be leaving your assets to, it is important. No matter if it is the family china or a successful company, if you leave a clear path that your heirs can follow, there is really no greater gift you can give them.

What happens if you don’t have a copy of the will and you need it? When a person dies in British Columbia and they have involved a lawyer to help, this document will be available from that legal representative and may even be filed at the Superior Court of Justice. Anyone can look at it because it is public record once it is filed with the court. There may be a small fee to get a copy but again, it is available to everyone who wants to see it.

If no estate planning has been done, you will need a letter of administration or an application for letters probate. This may be called a certificate of estate trustee with a will. It is filed with the Superior Court of Justice in the county or district that the deceased lived in and owned property in.

So many times, you think that your heirs will work through the necessary details of the estate you have left behind without fighting or arguing. It may happen, but the opposite usually occurs. They believe that you meant to leave the silver to them, and they will take the case to court if they see someone else claiming this item. Do you really want this to happen?

Knowing that you have left a clear picture for your heirs is so important. This saves infighting and argument at a time when they need to be celebrating your life.

Source: Government of Canada, “Coquitlam wills and estate administration,” accessed Sep. 19, 2015

What are the different types of powers of attorney?

September 16, 2015/in Power of Attorney /by gartonandharris

The Canadian government wants you to know all about what a power of attorney is and how you use one. A power of attorney is a legal document that you sign, much like a contract, with one or more trusted individuals. This person will have the authority to manage your money and property on your behalf if you should become incapacitated. Even though the person is called an “attorney” he or she doesn’t need to be a lawyer.

At the time that you sign this agreement, you must be mentally capable of understanding what you are signing in order for it to be valid and enforceable. This means that you fully understand and appreciate the financial and legal decisions and consequences of these decisions.

There are two types of powers of attorneys that are used in British Columbia: general power of attorney and enduring or continuing power of attorney. A general power of attorney is a document that allows your “attorney” to manage your finances, property and assets for you while are not able to do this. Once you become able again, the power of attorney ends.

It can be specific or limited and can give your trusted attorney a very narrow task list, such as helping to sell your home or pay your bills.

And enduring or continuing power of attorney is a legal document that lets the person you appoint manage your accounts and assets while you are incapacitated. It gives your attorney power over all of your finances and property. This type of power of attorney can take effect as soon as you sign it, so you want to be careful.

Knowing the law and doing your research ahead of time is valuable. Being aware of the different types of powers of attorney can help you make a clear decision about your future.

Source: Government of Canada, “What every older Canadian should know about: Powers of attorney (for financial matters and property) and joint bank accounts,” accessed Sep. 16, 2015

Putting a will in place brings peace of mind

September 8, 2015/in Wills /by gartonandharris

When you begin to face your life’s finances, you begin to see that the end of the road will eventually come for us all and it may be a good idea to get something in place that tells your heirs what you want to happen and who gets what. This is called a will and it is an important tool for everyone — not just those who are well off. For example, who gets the family china? This is worth much more than just money.

A will lets your children know what you want to happen to the things and assets you have left behind. At the law office of Garton & Harris, we know what the law says and how your will needs to be set up in case it is contested.

We listen carefully to what you have to say and ask questions so we have a full understanding of what is to happen upon your demise.

In British Columbia, the Wills, Estates and Succession Act permits for a contested will if people in your direct family are left out of the will completely. They can also bring this to a contest if they feel they have been treated unfairly. We know this because it is our job to be as knowledgeable as possible when it comes to estate planning and wills.

Did you know that you may need an executor? This person will be someone you trust implicitly and have the greatest confidence in to do exactly what you want done. This can be quite daunting and our law firm can help with this aspect of your estate as well. We are seasoned lawyers who have a vast experience in this type of situation.

What can I do to prevent fighting over my estate when I am gone?

September 2, 2015/in Estate Administration & Probate /by gartonandharris

Estate planning is something that comes about because you have assets that will be left behind when you are no longer here. Getting married a second time should be somewhat of a red flag for you to revisit your estate plan in general. Usually, there are children involved from the first marriage that will need to be included as beneficiaries, while at the same time, you will need to include your current spouse.

There may be tension when you start to change your estate plan because it is a second marriage and the kids may not feel all that warm and fuzzy about your new spouse. They may have resentment. You need to realize that while you are fine and everything looks rosy now, when you pass away, chances are that there may be animosity and rancor. Your will could end up being contested.

One tool that is useful in a situation like this is a spousal trust. This allows the surviving spouse to use trust assets during his or her life that roll over to the children upon his or her death. It is useful and can save your children and new spouse from getting the court involved. It can save you from fees as well so more of your assets get to the ones you want them to.

Another way to look at reassessing your estate is to get life insurance that pays your kids when you die. This is an excellent way to show that you care about them while also caring for your spouse. You can also split your assets into two groups: one for your children and one for your spouse.

Knowing that you have options with an estate plan can give you such a sense of peace. Getting everyone informed about what your plans are is important. It is a way to bring everyone together and avoid infighting later.

Source: The Huffington Post, “If You’re in a Second Marriage, You May Need to Revisit Estate Planning,” Suzana Popovic-Montag and Ian M. Hull, Aug. 20, 2015

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