During a free information session on Jan. 15 at the Moose Jaw Public Library, experts from both CIBC and Grayson & Company offered some tips on what to think about when organizing your estate and power of attorney privileges.
Ashley Barnsley, a financial services representative from CIBC, began the lecture by encouraging people of all ages to consider making an estate plan for their assets, as it’s never too early to be prepared.
“Never think, 'I'm not in a place where I need financial planning,' because everyone is in a place where they need financial planning,” said Barnsley.
Over half of Canadians don’t have a will in place, said Barnsley, and only 30 per cent of the population has a formal estate plan for when they pass away.
It can seem like a daunting task, but Barnsley and attorney at law Idowu Adetogun from Grayson & Company offered some useful tips to make the process easier for both yourself and your family in the future.
The main piece of advice offered was to be proactive: have all necessary documents organized, easily accessible, and up-to-date.
Collecting all important legal documents — such as a copy of the will, power of attorney documents, property deeds, a list of assets, and a list of important names like your lawyer and financial advisor — and keeping them in a place accessible to your executor is good practice.
“It's a really difficult process for [your family] in an already difficult time, so the more you can help them facilitate prior to your passing, the easier it is to go through those proceedings,” said Barnsley.
When writing a list of possessions and who will receive them, Adetogun recommended making sure to do it by hand, to erase any doubts of authenticity.
It’s also a good idea to have a conversation with the executor of your will, and even with family if desired, about your wishes so they are informed. Although, as Adetogun mentioned, be careful who you share that information with, in case it causes rifts between family members.
It’s also important to choose both the executor of your will and your power of attorney carefully. Choosing people who can be trusted and are able to make informed decisions is key, as is choosing people who are available.
If executors live out of province, it can be more difficult to make decisions in a timely manner. If they live in a different country, they could actually be legally unable to hold that kind of power.
Power of attorney requires similar thought, as they can be given complete control of personal and property estates.
“Remember, when you give power of attorney to someone,” said Adetogun, “that person acts as you. That person is now you.”
Providing updated documents to your bank and financial advisor is also very important, to keep them informed if your power of attorney has changed.
Because organizing a will can take place many years before it's actually needed, it’s also good practice to review your documents every three to five years, or whenever a large life change has occurred — things such as divorce, the birth of a child, or death in the family.
Often, grantors end up outliving their beneficiaries, executors, or power of attorney, which can complicate the process of settling the estate if things aren’t updated and leave remaining family tangled in legal proceedings.
There are a number of ways to organize both a will and power of attorney agreement to suit all situations, and a lawyer can help with that process.
Having your legal wishes outlined and detailed can make the process of handling your affairs less complicated, and ensure that your wishes are fulfilled the way you preferred.
