Information about powers of attorney for older Canadians

/in /by

Many older British Columbia residents have a poor understanding of financial powers of attorney. Conversely, some of the people who are appointed to serve as “attorney” in these documents do not understand them very well either. It is essential that everyone involved with a power of attorney know and understand what they are, how they are used and the risks and benefits of such documents.

Basically, when one creates a power of attorney, he or she is giving another party or parties the authority to manage property or money. Even though the person who is appointed in the document is called the attorney, this person may or may not be an actual lawyer. The appointee can be a family member, a close friend or whomever you wish.

The document itself dictates what the person you appoint can and cannot do on your behalf. For example, the person can manage your bank accounts, buy goods and services for you and even purchase property. However, the appointee cannot create or change your will, modify your insurance policies or give the power of attorney to another party.

Below you will find a few benefits and risks associated with having a power of attorney.

— Benefit: They are flexible and convenient

— Risk: Could lead to financial mismanagement or abuse

— Benefit: Can be customized to match your needs

— Risk: If not kept up-to-date, the document may no longer be valid

— Benefit: Protects your interests if you become incapacitated

— Risk: The person you appoint may not act in your financial best interests

Despite the risks of having a power of attorney in place, it remains an excellent option for older Canadians. You should also know that you can minimize some of the risks of a power of attorney by working closely with lawyer familiar with estate law in British Columbia.

Source: Government of Canada | Seniors, “What every older Canadian should know about: Powers of attorney (for financial matters and property) and joint bank accounts,” accessed March 30, 2016

Educate yourself about powers of attorney in British Columbia

/in /by

Whether you are creating an estate plan or been named to fill a role in another person’s estate, you will benefit from understanding some of the tools people include in their plans. One of these tools is a power of attorney. This document gives a person the power to make important decisions on behalf of another person.

While powers of attorney for British Columbia residents can be very specific or more generalized, it is crucial to learn the rules that govern such documents. For example, most anyone can be given power of attorney over another including a friend, a relative, a lawyer or an advisor. Exceptions to this include anyone who receives pay to provide you with health or personal care. You also may not grant power of attorney to a non-relative who works at a facility through which you receive care.

If you plan to include real estate matters in your power of attorney, you might want to speak with a lawyer first. The Land Title Act mandates compliance with a specific set of rules. For example, in most cases the document is only valid for three years after the signing date. A lawyer can also advise you about the different powers of attorney and which one is right for your needs.

You should also be aware that the laws governing powers of attorney in British Columbia underwent several changes in 2011. If you had a power of attorney drawn up before then, you should probably have it reviewed by a legal professional. As a matter of fact, it is always a good idea to review your estate planning documents periodically and seek advice from a lawyer if you decide to make changes.

Source: The Canadian Bar Association, “Powers Of Attorney And Representation Agreements,” accessed March 22, 2016

What are the fees associated with probate in British Columbia?

/in /by

It is impossible to give you a precise figure as the total of any fees will be based on the value of the estate. However, you can likely calculate an estimate of any fees required for probate by educating yourself about the process. Alternatively, you can speak with a British Columbia lawyer practicing in the field of wills and trusts to receive more specific information about probate and any fees you must pay.

In the BC province, your first fee for probate will be an initial $200 to submit an application for probate. After that, the courts will calculate other fees according to the value of the deceased’s assets. Here is a breakdown of the court fee schedule for British Columbia.

— For estates valued at $25.000 or less no fee is required

— For estates valued at more than $25,000 but less than $50.000 you must pay $6 per each $1,000 or part of $1,000 of the estate’s value

— For estates valued at more than $50,000 you must pay $14 per each $1,000 or part of $1,000 of the estate’s value

You will be responsible for any lawyer fees as well. Since each lawyer sets his or her own fees, you cannot know these costs until you speak with your lawyer.

At this point you might be wondering whether you actually require a lawyer during the probate process. No, you are not legally required to use a lawyer during probate but many find it beneficial. A lawyer can accurately and efficiently handle many of the legal aspects of probate, ensuring you have followed the letter of the law throughout the process.

Source: BC Laws, “Probate Fee Act,” accessed March 18, 2016

More about will challenges for British Columbia residents

/in /by

Recently in our blog, we spoke about the grounds on which a citizen of British Columbia can challenge a will. In that post, we listed several of these grounds along with a brief explanation of what they mean. Now, we would like to focus on what a bereaved family member should do if he or she believes a will is suspicious. First, you can learn about the possible grounds for challenging a will here or on our website if you like.

If you believe the document may be invalid, you probably have a good reason to call your loved one’s will into question. Perhaps you and the deceased talked about his or her last wishes at some point, but the will does not reflect these wishes. This does not automatically mean the document is invalid. However, if the disparity between what is in the will and what you know the deceased wanted is significant, your suspicions may hold water.

Another issue that may force grieving family members to challenge a will is the way in which their loved one’s estate is being administered. This may become a problem if the family thinks the trustee or administrator is not managing the estate as the deceased wished. In some cases, the family may want that trustee removed and so a will challenge is initiated.

In either case, the first step a family member should take is to reach out to a lawyer familiar with estate law. You need to have a frank discussion with your lawyer and explain why you want the will challenged. If you have any written evidence about your loved one’s will, you should ask the lawyer to examine this possible evidence as early as possible.

Will challenges should not be taken lightly. If you are unsure whether or not you may have a reason to challenge the will, feel free to contact our firm for more specific information.

Exactly what is a representation agreement?

/in /by

Representation agreement is a term clients looking into estate planning often hear. With all the terminology associated with estate planning, it can be difficult for the ordinary person to keep up. It is a good idea to explore all of the options available to you and asking questions is a great way to learn more.

In British Columbia, citizens often choose to create a representation agreement because it answers the potential need to appoint a person who can make decisions on their behalf. This might be necessary if a person should become incapacitated in some way through physical or mental illness.

Specifically, it is a personal planning legal document you can create that authorizes the person of your choice to become your representative. This representative can then manage your affairs according to your expressed wishes. Your representative can also make important decisions for you about your health care as well as your personal matters.

You can choose whoever you like to serve as your representative, but you should make sure that person is agreeable to the appointment. Often, people pick a family member or a close friend. The person you choose can reside in a different city or province and can even live in another country. However, you cannot appoint as your representative someone who is paid to provide personal or health care services to you.

The person you appoint in a representation agreement performs several duties and one of the most important is helping you in making your own decisions. This ensures that your wishes are always at the forefront regardless of your physical or mental health condition. Often, those looking into either a power of attorney or a representation agreement benefit from working with a lawyer to create a representation agreement that best meets their individual needs.

Source: Nidus, “Representation Agreement – Overview,” accessed March 03, 2016

Schedule An Appointment With Us

SEND US AN EMAIL

© 2020 by Garton & Harris. All rights reserved.
Disclaimer | Site Map | Privacy Policy

REVIEW OUR FIRM