November 2016 - Garton & Harris

Factors to consider when writing wills

November 22, 2016/in Wills/by gartonandharris

It’s one of the most important tasks for the living, and yet no one lives to see their efforts pay off. Writing a will may be one of the least appealing chores a person needs to take care of, but doing it now may provide peace of mind later in life. Men and women in British Columbia seeking to write their wills would do well to go over a few key aspects before drawing up any documents.

One expert on wills and estates believes the first consideration should be choosing the right people for the key roles. This means carefully selecting an executor to handle the estate and a guardian for any children who have not yet reached adulthood. It is also important to discuss one’s wishes with those people and to be sure they feel they will be up to the tasks. Responsibilities such as these should not come as a surprise during a time of grieving.

Regarding any guardian to be appointed, discussing how and where children are to be raised is an important step before committing those wishes to paper. And if any inheritance is to be left to children, it should be pre-decided at what age they will collect. Without specific instructions, the full amount will be paid out at age 18. It may be more desirable to put it off to a later date or split payments over time. Should one wish specific items be left to certain individuals, those can also be written into a will or left in a memorandum or letter of wishes.

Of course these are just some of the points to consider for anyone drawing up a will. A lawyer who practices estate law in British Columbia can provide further guidance to men or women looking to get their wills in order. A bit of effort now may save a lot of difficulty for their families in the future.

Source: Canadian Living, “Secrets to writing a will“, Tudor Robins, Accessed on Nov. 20, 2016

Modern wills should cover digital and physical assets

November 17, 2016/in Wills/by gartonandharris

Preparing a will is one of the most important tasks a man or woman in British Columbia can undertake. Making one’s final wishes clear will ease some of the burden on those left behind. Many people, however, consider only their traditional assets, such as real estate and bank accounts. Wills can also be used for final instructions about a kind of asset unique to the computing age.

The internet has become a prominent part of many people’s lives, both for entertainment and commerce. The concept of “digital assets” is fairly new, and many people overlook them altogether. When a person dies, his or her emails, blogs, and social media profiles continue to exist. It might be prudent to leave passwords for the executor to access these accounts in order that they may be either preserved or discontinued, depending on personal preference and the nature of the account. Business owners should pay particular attention to their online presence and what will become of it after they have passed.

Online monetary accounts should also be remembered, as not all money is stored in bricks-and-mortar banks in the 21st century. For example, a PayPal account may have funds stored in it that cannot be physically accessed and which could be lost if the password dies with the account holder. Provision should be made for access to any credits stored online, along with instructions for their dispersion.

Digital assets are not something previous generations needed to worry about. Indeed, they are a hallmark of the modern age. They are, however, just as much a part of an individual’s estate as the money in the bank and one’s property at home. In order to be certain all loose ends are tied up, care should be taken to ensure they are properly addressed. Those looking to leave behind comprehensive wills would do well to work with a law firm knowledgeable about estate law in British Columbia.

Source: Lake County News, “Estate Planning: Important but sometimes unaddressed estate planning issues”, Dennis Fordham, Nov. 12, 2016

When planning their wills, entrepreneurs should take special care

November 10, 2016/in Wills/by gartonandharris

The purpose of a will is to make provision for the distribution of assets after a person’s passing. For most people in British Columbia, those assets will include things such as real estate, material possessions, money and investments. Entrepreneurs and other business owners, however, have one very special asset that should be given space in their wills: the business itself.

If a business owner has an interest in ensuring the business has a future past the end of his or her own life, provision must be made for that in a will, and it should be incorporated into any estate planning. In the case of a sole proprietorship, matters are relatively simple. The executor of the estate is to be entrusted in the will with access to any digital assets of the business, including passwords for social media and email accounts. A detailed succession plan should list those trusted family members or associates who will take over the operation of the business and what their roles will be.

In cases where a partnership, or an ownership group controls the company, a buy-sell agreement is an essential tool. This document provides for the division of the deceased’s interest in the business among the remaining owners. Power of attorney can also be granted to a partner, enabling that person to make business decisions on the late man or woman’s behalf.

Many British Columbia entrepreneurs and business owners have poured their hearts and souls into building successful companies. It’s only fitting that they implement measures in their wills to protect their life’s work after their own life has ended. Working together with a law firm focused on both business and estate law, it may be possible to preserve their business legacy for future generations.

Source: business.com, “5 Estate Planning Tips for Entrepreneurs“, Fred Cohen, Nov. 8, 2016

Think carefully before assigning power of attorney

November 3, 2016/in Power of Attorney/by gartonandharris

People today are living longer, on average, than ever before, especially here in British Columbia. For some, the reality of this increasing longevity is a decreasing ability to make decisions about their own lives, including finances. A good option is choosing to grant power of attorney to a trusted family member or loved one before the day comes that they are no longer able to take care of themselves. However, much thought must be given when selecting the person who will be making those decisions on their behalf, as one elderly man recently discovered.

On Nov. 2, 2016, a woman sat in court and listened as a judge passed sentence on her for stealing from her elderly father-in-law. She had earlier pleaded guilty to the theft, a process that had been ongoing for more than eight years. The woman had been granted power of attorney over the man’s affairs in 2006.

Using her access to the man’s bank account, the woman began using the funds for her own personal benefit. Purchases included a new car, home renovations and vacations, including a trip to Hawaii. Although the total amount of money stolen has not yet been determined, the prosecution maintains the figure is around $200,000. The man’s daughter, sister-in-law to the accused, eventually caught on to the crime and reported her to the authorities. The judge handed down a sentence of two years in prison, and a repayment of an amount to be determined later.

It is sad when a person’s trust is so willfully broken as it was in this case. For some, the temptation is too great when faced with an easy windfall like an accessible bank account. When a man or a woman awards the power of attorney to help ease their future burden, great care must be taken to ensure the right person is chosen for the job. Consulting with a lawyer that deals with estate law in British Columbia, may make the decision a little easier to make.

Source: kiro7.com, “Pierce County woman sentenced for stealing thousands from grandfather with dementia“, John Nicely, Nov. 2, 2016

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