1. ESTATE PLANNING BASICS
Heather Richardson, B.A. (Hons), LL.B.
Staples & Swain Professional Corporation
10 William Street South
Lindsay, ON K9V 3A4

2. WHAT IS ESTATE PLANNING?
Process to effectively deal with your person and assets if you die or become incompetent
Good estate planning:
Is more than just a simple Will
Minimizes potential taxes and legal costs
Sets up contingency planning
Ensures your wishes regarding health care treatments & end of life directives are followed
Considers the effect of relevant legislation & case law

3. DYING WITHOUT A WILL Dying intestate
Government written Will
Administrator Required to Apply to Court
Disappointed Spouse
Disappointed Family
Red tape
Lost tax Saving opportunities

4. JOINTLY HELD ASSETS
On death of first owner, surviving joint owner(s) becomes absolute owner
Excellent idea between spouse
Survivor becomes owner without legal or probate costs
No freezing of much needed cash/assets
Real property (land), bank accounts, RRSPs and investments

5. JOINTLY HELD ASSETS
YOU SHOULD NOT OWN ASSETS JOINTLY WITH A PERSON(S) OTHER THAN YOUR SPOUSE
Immediate tax implications
Exposure to creditors/matrimonial claims
Loss of control of your estate Renders Will and Powers of Attorney meaningless
Avoiding “probate” not worth the risk!

6. CHOICE OF EXECUTOR
Legally responsible to carry out terms of your Last Will and Testament
Must be honest, capable, knowledgeable and available
Able to act impartially towards all beneficiaries
Able to work with any co-executors appointed
Able to withstand criticism from beneficiaries and family members
Could face personal liability
Possible conflict of interest
Have they agreed to act?

7. BLENDED FAMILIES
Ensuring “your” children are not disinherited after your death
Providing for dependants and spouse
Predatory marriages
Privacy issues
Effect of Domestic Contracts

8. SPOUSAL TRUSTS Simple, basic estate planning tool
Up to entire income and/or capital of estate available to surviving spouse
Creates two taxpayers
Distribution of remaining funds governed by your WILL

9. PROVIDING FOR CERTAIN TYPES OF BENEFICIARIES
Protecting provincial benefits for disabled children
Ensuring inheritance lasts for beneficiaries who may not be capable of managing money
Drug/Alcohol/Gambling Addictions
Rocky or Predatory marriages
Present or potential future creditors
Minors
Proper and adequate support of dependents

10. TAX PLANNING Don’t lose any capital gains exemptions
Protect from unintended consequences that may defeat your wishes
Keep your tax deferrals through using the proper roll-overs
Probate planning
Multiple Wills

11. BUSINESS SUCCESSION Deferring taxes through estate freezes
Maintaining gains exemptions
Who will have control
Shareholder agreements
Is there a buy-sell agreement?
Will there be adequate capital for a buy-sell agreement
Multiple Wills

12. SMART PHILANTHROPHY Tax Planning & Lifestyle Goals
Financial Gifts / Life Insurance Designation
Real Estate
Shares
Charitable Remainder Trusts
Endowments /Foundations

13. DRAFTING ISSUES What if child/beneficiary predeceases
Adopted vs. step-children
Cy-press (charity does not exist)
Ad torrem (contest = forfeit)
Partial Intestacies
Personal item that no longer exists/not in deceased’s possession
Isn’t enough money in the estate to satisfy the gifts
Proper execution of the document
Codicils
Will Kits
Funeral Wishes

14. WHAT ARE POWERS OF ATTORNEY
Legal Document Designating Another Person(s) the Authority to Act on your behalf
Two Types of Powers of Attorney:
1. Power of Attorney for Management Property
(general vs. limited)
2. Power of Attorney for Personal Care
Property POA can be effective immediately or “Springing” (ie. triggered by future event)
Personal Care POA effective upon incapacity

15. WHAT POWERS DOES PROPERTY POA HAVE
Can make decisions and take action regarding the Grantor’s assets, income, expenses and liabilities
Paying taxes and bills from Grantor’s bank account
Making investment decisions regarding the Grantor’s retirement savings
Buying or selling a home
Signing contracts/leases
Making gifts with Grantor’s funds to family
Using funds to support Grantor’s dependents
Initiating/Continuing Litigation on Grantor’s behalf

16. POWERS OF ATTORNEY FOR PERSONAL CARE
Written legal designation wherein the Grantor authorizes someone/multiple individual(s) to make decisions on his/her behalf in the event of his/her incapacity to make decisions regarding his/her health, safety and personal care, including medical treatment, nutrition & shelter
Major surgery or medical treatment decisions
Arranging home visits by health care worker
Right to personal medical information
Admittance to long-term care facility

17. WHY GRANT POWERS OF ATTORNEY
Peace of mind. To ensure your assets, and yourself are looked after by someone you trust and in the manner you desire, if you become ill or incapacitated in the future.
Control. By selecting in advance who you wish to speak/act on your behalf you can provide guidelines & instructions to them & eliminate the possibility a Guardian will need to be appointed.
Convenience. If you are unavailable, but need some affairs attended to, granting a limited, or temporary Power of Attorney is often helpful.

18. WHAT HAPPENS IF I HAVE NO POA AND NEED IT
If you become incapable to make decisions about your property and/or your person someone will have to be designated as your “Guardian” or “Substitute Decision Maker”
For personal care, decisions fall to next of kin
Family member or someone close can apply to Court for appointment as your Guardian
Guardianship Applications Require Capacity Assessments, Can be Costly & Time Consuming Process
Office of the Public Guardian and Trustee (the Government) will assume the role of Guardian if no suitable applicant is available

19. WHO SHOULD I APPOINT Someone you TRUST
Someone that knows/honours your views/wishes
Someone willing to do the work/be available
Often, your Attorney is a close relative/friend
Can be more than one person, either jointly or jointly & severally
For Property Management, could be a Professional or Trust Company
Important to Appoint Alternate(s) to first choice
Choose Wisely.

20. CAN I REVOKE/CHANGE MY POWER(S) OF ATTORNEY
Both Powers of Attorney for Property and for Personal Care can be changed or revoked at any time as long as the Grantor has legal capacity
WHAT DO I DO IF MY POA IS BEING ABUSED?
Tell Someone. The Elder Abuse Coordinator, the Police, the Public Guardian & Trustee, Your Doctor … and Seek Immediate Legal Advice.

21. THANK YOU
QUESTIONS?