August 2016 - Garton & Harris

Avoid this mistake when drafting your will

August 24, 2016/in Wills/by gartonandharris

A will is the most important piece of estate documentation that exists. British Columbia residents who fail to draft a will before they die are leaving a complicated situation for their loved ones to try and sort out — a situation that could result in disgruntled family members or even lawsuits as potential heirs try to assert their inheritance rights in court. However, completing a will is not the be-all-end-all of estate planning. There are some equally important details that also have to be dealt with before one dies, especially regarding the beneficiary forms on financial accounts.

What many British Columbia residents fail to realize is that their Registered Retirement Savings Plans, Tax Free Savings Accounts, Registered Retirement Income Funds, Insurance Policies and other financial accounts may have special beneficiary forms that need to be filled out and kept up to date. It does not matter what is said in a will; the information contained on financial account beneficiary forms will supersede any directive laid out in a will. Even if someone says that all of his or her assets shall be bequeathed to his or her new spouse in a will, if the beneficiary form on a retirement account says that the assets will go to an ex-wife or a now-estranged family member, by law the account assets will still go to that person.

Many estate plans have gone awry in British Columbia as a result of a beneficiary form that someone forgot to update. For that reason, at Garton & Harris, revising and updating beneficiary forms is something that we take seriously. We always ask our clients questions to identify whether there may be a missing beneficiary form or financial account that needs to be updated or changed. If you are not sure whether your beneficiary forms are up-to-date, you may want to speak with an estate planning lawyer immediately.

How can you honor someone you’ve recently lost?

August 19, 2016/in Estate Administration & Probate/by gartonandharris

One of the ways many people deal with the immediate grief following the loss of a loved one is by honoring that person in some way. Remembering the person, and telling favorite stories about him or her, can help reduce the shock of the loss. Throughout the days, weeks and months following a death, you can honor someone in numerous ways.

Many people honor loved ones through the funeral and burial process. It’s important to understand what the person might have wished for his or her own burial or memorial so you can best honor the individual. That’s one reason for talking about end-of-life concerns with other members of your family. Memorial options can range from very formal, traditional wakes and funerals to informal gatherings or scattering of ashes. Keeping the proceedings in line with the deceased wishes and personality helps provide the best possible closure and positive feelings of remembrance during the service.

As time goes on, you might want to continue honoring or remembering a lost loved one. One of the most traditional ways people do this is to put flowers on that person’s grave. You can visit the grave yourself to have some time of reflection and leave flowers, or you can work with a professional service that maintains the grave and ensures a memorial is always present.

You might also consider honoring a loved one in the way you handle his or her estate. Working to ensure that the person’s wishes regarding one’s property are followed is a great way to honor his or her memory. If you are unsure how to honor those wishes through estate administration, consider working with an estate law professional to complete the legal process.

Source: Neptune Society, “Five Ways to Honor Your Loved One’s Legacy,” accessed Aug. 19, 2016

Probate and executorship duties in British Columbia estates

August 12, 2016/in Estate Administration & Probate/by gartonandharris

Probate proceedings in British Columbia can be long and complicated, but they can also be relatively simple. It all depends on the size of a particular estate and how the decedent organized it prior to death.

When a British Columbia resident passes away, the need to go through probate proceedings is decided by the policies of the financial institutions or agencies that hold assets included in the decedent’s estate. These agencies may demand that the executor of the estate submit an application to receive a representation grant, which allows the executor to be recognized as the legally sanctioned representative of the estate. In order to determine if a representation grant is required, executors can contact the financial institution or agency directly.

During the probate process, the administrator or executor will have a list of basic duties that he or she is in charge of completing. These duties include:

— Compiling an inventory of all debts and assets

— Putting together the addresses and names of all beneficiaries and surviving relatives

— Canceling credit cards, redirecting mail, canceling subscriptions and wrapping up other important matters

— Taking control of the decedent’s assets

— Paying off all outstanding debts

— Selling off assets that need to be liquidated

— Distributing the estate to beneficiaries

The executor of a British Columbia estate will likely have other duties to perform, and ultimately those duties will depend on the unique characteristics of the estate being dealt with. In many circumstances, executors and estate administrators may wish to contract the services of a qualified estate lawyer to help them navigate the probate process when necessary.

Source: gov.bc.ca, About probate and estate administration,” accessed Aug. 12, 2016

Risks associated with powers of attorney

August 5, 2016/in Power of Attorney/by gartonandharris

Powers of attorney are important legal documents that every Canadian should have on file. A power of attorney assigns special authority to a trusted individual who can make decisions on behalf of the power of attorney holder in the event the person becomes incapacitated.

Having this document on file makes things immeasurably easier on loved ones who may need to step in to make important medical and financial decisions at a moment’s notice when they’re needed most. However, powers of attorney also come with risks that estate planners should be aware of.

A power of attorney becomes dangerous when the person selected to carry it out is untrustworthy, abuses his or her authority, or makes decisions that are not in the best interest of the person who set up the power of attorney. Powers of attorney can also be problematic if they are too narrow or too broad regarding the powers they give. For example, if a power of attorney does not leave specific instructions on how assets should be handled, it could lead to them being handled in an unwanted manner. Conversely, if the scope of the powers is too narrow, the representative may not be able to act appropriately on behalf of the individual being cared for.

Another danger involves the appointment of multiple powers of attorney. This joint status could lead to disagreements and standstills, which could result in costly delays. Finally, failing to regularly review and update a power of attorney could be devastating. Life circumstances and laws change, which can render a power of attorney obsolete unless it is revised and updated.

At Garton & Harris creating powers of attorney and planning estates is our business. We help British Columbia residents prepare themselves and their families for the future in a way that avoids risks and common pitfalls associated with planning estates.

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