Incapacity and the Authority to Act Leave a Legacy April 2014 Shelley E. Waite TEP Partner, Wills & Estates

About Us McLeod & Company LLP is a dynamic mid-sized law firm with offices in Calgary’s south and downtown. Over the past 30 years we have grown to more than 45 lawyers with diverse practices and community ties. We continue to be the largest non-downtown based law firm in the City with a long-standing commitment to excellence, integrity and results. We have one of the largest Wills & Estates Departments in Alberta with seven lawyers, including two partners, counsel and four associates. We provide full wills and estates services including, estate and trust planning, estate administration, estate disputes, cross border and international matters, incapacity and elder law issues. Our team is experienced and committed to providing you with excellent service based on solid foundations and the most recent developments in the law.

Basic Concepts Everyone has the right to self autonomy Autonomy must be preserved to ensure least intrusive and least restrictive forms of assistance Everyone can make their own decisions Capacity is presumed until the contrary is demonstrated These basic concepts apply to elder people too

How to Assign Decision Making Power Power of Attorney Personal Directive Guardianship Trusteeship Co-decision maker Supported decision making Joint assets

You Get to Decide Powers of Attorney Powers of Attorney Act Personal Directives Personal Directives Act

You Get to Decide Power of Attorney and Personal Directive Personal documents completed before you loose the capacity to decide You decide who to appoint as your decision makers Can be revoked by you the maker but only if you have the capacity to understand what this means Easy to do and inexpensive

Incapacity Enduring Power of Attorney “EPA” Deals with the finances and property of the “estate” of the incapacitated person Who – your “attorney” versus you the “donor” When - does it come into effect How - does it come into effect What - can my attorney do Where – will it be recognized outside of Alberta Why

Incapacity EPA – Who Attorney Anyone you trust Canadian resident preferred Can be more than one person Does not have to be family Must be older than 18 years of age Can appoint joint attorney and / or alternates

Incapacity EPA – When is it in effect Enduring – continues past incapacity Springing – upon incapacity Immediate – as soon as it is signed Declaration in writing Combination of any of the above

Incapacity EPA – How does it come into effect Two doctors in Alberta Springing - Two doctors have to sign a written declaration declaring the donor to be incapable Enduring - Continues in effect after incapacity has been established

Incapacity EPA – what can my attorney do? Sell land Spend my money on me, my spouse and children Invest my money prudently “prudent investors rule” Income taxes and other filings Reporting requirements Dispose of my personal belongings if necessary Continue gifts to charities

Incapacity EPA – Where can they act Depends Alberta law recognizes EPA’s from other jurisdictions if they have met with the legal formality of that jurisdiction - REALLY Get legal advice before buying the BC cabin

Incapacity EPA – Why Because it is harder to take care of an incapacitated person versus someone who is dead You draft the who–what-when–where–why. Document is tailored to fit your situation. Trusteeship application $$$$$$$$ Onerous Involves the Court Renewal requirement Public documents Accounting requirement

Incapacity Personal Directive “PD” Deals with the personal decisions of the incapacitated person Who – your “agent” When - does it come into effect How - does it come into effect What - can my agent do Where – will it be recognized outside of Alberta Why

Incapacity PD – Who Agent Anyone you trust Canadian residency not important Location may be a factor Can be more than one person and can name alternates Does not have to be family Must be older than 18 years of age when acting Does not have to be your “attorney”

Incapacity PD – When is it in effect Only on incapacity (Springing)

Incapacity PD – How does it come into effect Agent + doctor/psychologist sign a written declaration declaring the donor to be incapable or Two service providers one of whom must be a doctor or psychologist sign a written declaration declaring the donor to be incapable

Incapacity PD – legislated forms The Personal Directives Act now has forms for the doctor/psychologist and service provider to fill out A PD is NOT in effect until incapacity is established

Incapacity PD – What can my agent do? Health decisions Where I will live Who I might live with What activities I can do Legal matters not pertaining to my monetary estate End of life decisions

Incapacity PD – Where can they act Law is silent on jurisdiction- Alberta will recognize similar documents from other jurisdictions May be subject to the laws of that jurisdiction

Incapacity PD – Why Because it is harder to take care of an incapacitated person versus someone who is dead You decide the who-what-when-where–why and not your agent. Can be tailored to fit your situation. Biggest impact – end of life decisions and type of care Guardianship application o $$$$$$$$ o Onerous o Involves the Court o Renewal requirement o Public documents

Incapacity What about “Living Wills” This is NOT a legal document and therefore has no force or effect in law

Incapacity Do your own Personal Directive Go to:

You Don’t Get to Decide Adult Guardianship and Trusteeship Act has replaced the: Dependent Adults Act

You Don’t Get to Decide Adult Guardianship and Trusteeship Act Now a continuum of decision making choices o Supported decision making; if not this then, o Co-decision making; and if not this then you have lost capacity and will need a: o Guardianship and/ or Trusteeship

You Don’t Get to Decide Trusteeship application $$$$$$$$ Onerous Involves the Court/Office of the Public Trustee Renewal requirement (perhaps) Public documents Accounting requirement Personal reference check Criminal records check Possible Credit check

You Don’t Get to Decide Guardianship application $$$$$$$$ Onerous Involves the Court/Office of the Public Trustee Renewal requirement (perhaps) Public documents Accounting requirement Personal reference check Criminal records check Possible Credit check

You Get to Decide Supported Decision making No significant cost Does not involves the Court Contract between donor and support decision maker Only personal decisions not financial Language or communication difficulties Co-Decision making Court process Need capacity report There is significant impairment Child who is turning 18 and needs help to make good decisions

Other Property Joint Tenancy and Jointly Held Assets your home your bank accounts The “right of survivorship” o New LAW! Careful if you have joint account with someone other then your partner ! Joint Tenancy versus Tenants in Common

Incapacity Do’s and Don’t for Attorney and Agent and Trustees and Guardians must act in your “best interest” If unclear as to what “best interest” includes, they should be seeking legal advice or Court advice may be held personally liable if something goes wrong Need Help?

When the power is abused First question - where is your authority? Request to see a notarized copy or original copy of the document See if it requires activation – 2 doctors determine lack of capacity Talk to your legal contact Just because you are a relation does not give you the authority to act Call the complaints officer at the Office of the Public Guardian

Personal Planning documents are very personal and every situation has their own facts that must be considered before a legal opinion is rendered. The examples provided in this presentation do not constitute legal advice and should not be relied upon. If you have specific concerns please consult your professionals, legal staff or the Office of the Public Guardian. A Final Note:

For more information, please contact: Shelley E. Waite TEP Partner, Wills & Estates (403) Thank you!