When I'm Gone

When I'm Gone

LOGIN / SiGN UP
A) PRE-PLANNING
 
1. Discussions with Aging Parents

The intention of this portion of the site is not to discuss caring for aging parents. There are many articles on this subject, and two of the best we have read would be by Amanda Lambert, MS, CMC, ALCP, entitled Caring For Aging Parents, a 14 Item Checklist, and an article by Dr. Alejandra Vasquez, JD, CT, a Certified Grief Counselor called 21 End-of Life Questions to Ask Yourself or Loved Ones.

While end-of-life healthcare wishes, such as the nature of medical treatment an aging parent might want and wouldn’t want at the end of their life, is a critical and emotional discussion to have, most importantly your parent needs to be assured that their choices will be respected by everyone.

These topics can be addressed by a Power of Attorney For Personal Care. Your parent may prefer to have control over this decision rather than leaving it to the discretion of their loved ones.

Some issues initiating a discussion can be found in the materials when you

Click here

 

2. Preparing a Will

Considerations on Whether to Prepare a Will, and Whether You Should Use an Online Will Service

Many people say that the less time and money spent on a Will by the deceased, the more your beneficiaries will end up paying for it afterwards. Whether to use an online service or to go to a lawyer to assist with the preparation of your Will is a decision that should be based on a number of factors.

For more information on this, and when you should consider updating your Will,

Click here

 

 3. Preparing a Power of Attorney

Some General Comments

A Power of Attorney (POA) gives someone else, under certain circumstances, the legal ability to make financial and health care decisions for you. This person does not have to be a lawyer, and can be any personover 18 years of age that you trust. Giving someone your Power of Attorney does not give them the opportunity to make a Will on your behalf. Each Province in Canada has its own legislation, and its own Power of Attorney requirements and documents.

For this reason, we would suggest that you check with your province to see what the specifics are in providing your authority, in appointing your attorney, and in the general nature and structure of the Power of Attorney itself. For more information on Powers of Attorney in general, what types there are, what they can do, Choosing Your Attorney, Tips for Preventing Abuse, What To Do After You Have Prepared 

Your Power of Attorney, and direction to Various Provincial Forms and Resources,

Click here

 

 4. Is setting up a Joint Bank Account Another Option?

While opening a joint account may seem like a convenient way to bypass the probate process and probate fees, caution should be exercised before proceeding on this route.

Joint accounts can be set up such that they are accounts with “tenancy in common”, or “with a right of survivorship”. With tenancy in common arrangements, each account holder may not own equal shares of the asset. When a joint owner dies, their share is left to the beneficiaries set out in their Will, or if there is no Will, then the rules of intestacy apply. With a right of survivorship, which is the more common arrangement, each individual has equal ownership in the account, and upon the death of one joint owner, the surviving joint owner(s) automatically receives ownership of the deceased owner’s portion of the account.

To see more about the benefits and drawbacks in setting up a joint account,

Click here

 

 5. Here is a TFSA Tip to Save Your Spouse Time, Stress and Taxes When You Die

If you are married, or have a common-law partner, you can designate your spouse or partner as a “successor holder” of your TFSA, rather than a beneficiary, at the time of your death. Only a spouse or common-law partner can be named a successor holder, not your children. By doing this, your spouse can essentially take over your TFSA upon your death on a tax-free basis, regardless of whether they have the contribution room. This way you are essentially ensuring your TFSA legacy.

For more information on this subject,

Click here

 

 6. Letter of Wishes

A letter of Wishes:

a) Can explain the rationale behind the decisions in your Will

b) Can provide guidance to guardians on how to care for the children

c) Can provide guidance on how you want your children to be raised

d) Can set out your expectations in terms of religion or extracurricular activities

e) Can act as a letter communicating your values, life lessons, and most important life experiences. Think about what you value – what makes your life meaningful.

For more information on a Letter of Wishes, and a sample,

Click here
Discussions with Aging Parents:

In Canada, most provinces provide for a Power of Attorney For Personal Care. These forms can generally be obtained on line, under a government website, and are fairly easy to fill out. There should be no reason to pay for a form on line, however if a lawyer is involved, there likely would be a small fee for assistance with this aspect of the estate process.

Rather than engaging in an end-of-life healthcare discussion, we have decided to focus on issues to raise with your aging parents to provide guidance in complying with their wishes when they are no longer alive. 

Everyone, at some point, needs to come to terms with their mortality. In any discussion regarding this sensitive topic, we would always suggest that the best approach is one of open communication in a patient, collaborative and respectful manner. To the same extent that you would want autonomy and choice, your parent(s) involvement in the decision making process is generally a matter of great relevance and importance to them.

To facilitate a discussion on this topic, you may consider the following:

A) If you are incapacitated, would you prefer medical professionals to exhaust all life-saving measures? Would you prefer to remain on life support? To be hooked up on a feeding tube? Or given comfort care that does not necessarily extend your life.

Your parent may prefer to have control over this decision rather than leaving it to the discretion of their loved ones.

B) Do you have a will? Who would have a signed copy of it?

C) What would you like to happen to your remains? While this is not necessarily an easy conversation, providing insight in this regard addresses your parents’ wishes, and makes knowing what to do easier for everyone. Where would you like to have your final interment? Are there any religious practices that you would like to see followed?

D) Is there any unfinished business that I can help with? Particularly where there is an illness or incapacity involved, they may need your help in getting things done.

E) How would you like to be remembered?

F) In terms of finances, do you have an estate plan finalized – is there a Will or some other directive, such as a Power of Attorney to deal with matters involving cognitive decline or mental incapacity? You don’t need to know what the plan is, just that there is one, and that it is up to date.

Preparing a Will:

You may choose to not prepare a Will if the disposition of all of your assets are already accounted for through either a Trust that is in place, or because they’re already held in a joint account or registered on title with another person as a joint tenant with a right of survivorship.

Other considerations in whether you need a Will to assist with the administration of your assets when you die, would be whether your estate has significant value, and how complicated your property disposition(s) would be. Are there business interests involved? Are there complex tax considerations for your estate or those to whom you would leave property? Are there people to whom you would want to leave specific bequests? Would more than one person want a particular item of yours that might cause a dispute? Who would look after any minor children if you die unexpectedly? Are there any funeral or burial arrangements you would want to see take place? Are you likely to need advice in order to prepare your Will and make sure that it is valid?

We will not recommend any online Will preparation services, but would suggest that you seek independent reviews about whether others are satisfied with the overall process that you are considering.

Everyone’s requirements in the Will preparation process are different. Any online process will have the advantage of being very general and simple. This could be a disadvantage where there are any complicated issues or anticipated problems, or require in depth assessment for tax issues or possible dispute problems. If any of these are an issue, you may require a lawyer for discussion\advice purposes and to prepare your Will.

Information that you will likely be asked to address in an online site will include:

  • Choosing an Executor to Administer your estate
  • Identifying what property you will wish to transfer after death
  • Who your beneficiaries will be
  • If minor children are involved, who the guardians will be
  • Are there any specific wishes for your funeral
  • How your debts will be satisfied from your estate
 

Most online will preparation sites are designed with “fill in the blank” options for your personal information. They contain clear instructions, and indicate where your witnesses should sign. They are generally prepared so that you can rely on their contents to ensure that what has been prepared is legal in your Province, but that certainly needs to be confirmed. Also, if you intend to revoke, revise, or amend your Will at a later date, many online services do not provide for this contingency.

When should I consider Updating My Will?

  • If you get married or re-married your Will may be invalid unless it states in the Will that you intend to marry the person that you married. In that case you will either need to make a new Will or make a codicil to your old Will before the marriage.
  • In most provinces, a divorce between married spouses, or separation from a common law partner will not affect your Will. In any event, you may want to change the bequests to your now ex-spouse.
  • In the event of the death of a beneficiary, you will want to update your Will to reflect a new beneficiary. In many cases, the gift that was left to the deceased beneficiary would go to that person’s next of kin.
  • While having a child will not affect your Will, you may want to update your Will to include that child.
  • Lastly, if you have given away something before you die that is specifically mentioned in your Will, the part of your Will that refers to that item will be considered void, but the remainder of your Will will remain valid

Estate rules differ from province to province within Canada. Recent case law in B.C., for example, tells us that a deceased person’s family can contest a Will if they feel that they have been wrongfully disinherited. This option does not exist in several other provinces, such as Alberta and Ontario. This would be another reason to consult a lawyer specializing in Wills and Estates.

Preparing a Power of Attorney:

A POA can be specific or limited, giving authority to your attorney for a specific task, like selling a house, or for a certain period of time. It can start as soon as you sign it, or on a specific date that is referenced in the document. It is also possible for the POA to only come in to effect when you become mentally incapable, again, if this is specified in the document.

In Ontario, there are two types of POA, one for personal care, and one for property. A POA for personal care allows someone to make decisions about your health care, your housing, and your meals and clothing. If you have not provided for a POA for personal care, your family can make some decisions about these matters, but not all. There is also a POA for property, through which someone can make decisions about your financial affairs, including:

-paying your bills

-collecting money owed to you

-maintaining or selling or mortgaging your home

-managing your investments

Without a POA for property your family cannot automatically step in and make these financial decisions, they would have to go to court and become a court-appointed guardian. The Office of the Public Guardian and Trustee would only step in as a last resort.

In order to make your POA you must be mentally capable, and at least 18 years old. In Ontario, in order to make a Personal Care Power of Attorney, you must be 16 years old.  You may give serious thought about talking to a lawyer to prepare your POA if:

  1. You are considering giving someone control over your personal or business bank accounts;
  2. If you own your own business;
  3. If there is a difficult family situation involved; or
  4. If you own property in another province or country.
 

Before signing a POA, it is a good idea to have a conversation with the person you will be appointing about compensating them for their work. If you choose a legal or financial professional, or a Trust Company to be your attorney, they will likely charge fees for this service.

Choosing Your Attorney

If none of the above situations are applicable, and you feel that you can prepare your own POA, you should consider the flowing factors before appointing an attorney:

  • Personal Suitability – Does this person know how to manage money and property? Do they do it well for themselves?
  • Trustworthiness – Is this person always open and honest with you? How long have you known them? Will they act in your best interests? Do they have any personal issues (ie finance or health) that may impede their management of your finances?
  • Experience – Does this person understand financial matters? Do they understand the responsibilities involved in being a POA?
  • Availability – Does the person have the time to handle your financial affairs and property issues as well as their own? Are they easy to contact and readily available?
  • Reliability – Is this someone you can rely on? Have they carried through with important decisions and responsibilities in the past?
  • Willingness – Have you spoken with the person and they have agreed to take on this responsibility? Do they understand what is expected of them as your POA?
 

Whoever you choose to act as your attorney should be someone you trust, such as:

  • A family member
  • A spouse
  • A long time friend
  • A lawyer or a Trust Company
 

Whoever you choose, you should speak to in advance, before appointing them, to ensure that they are prepared to take on this responsibility. and that they understand how you want your personal care or financial affairs to be handled. For example, with a POA for Personal Care, you should have a discussion with your chosen representative to tell them what you want to happen if you need medical care and are unable to consent to or refuse treatment. If you are not comfortable appointing anyone, you should speak with your lawyer about your options.

Some tips for preventing abuse of a Power of Attorney:

  1. Consider whether a Power of Attorney is really necessary. Are other alternatives available, ie paying bills by way of automatic deductions from your bank account
  2. Place clear limits on the powers given under your POA. ie what the grantee\mandatary is and is not allowed to do on your behalf
  3. Limit bank withdrawls. You can pick an arbitrary number and include this in the document.
  4. Include an expiry date at which the Power of Attorney will no longer be valid. You can always decide to make a new one with the same appointees.
  5. As the grantee\mandatary to do an initial inventory of your property, before carrying out any duties mentioned in your Power of Attorney. A copy of this list can be provided to you and any other trusted person of your choice.
  6. You can also ask for a regular report to be provided to another trusted person, as an oversight.
  7. Always keep an eye on your affairs by reviewing bank statements, bills and other important documents.
 

If your financial situation is complicated, it may be advisable to consult a lawyer or trusted financial advisor to draft your Power of Attorney.

After You Have Prepared Your Power of Attorney

  • Regularly review the terms to make sure that it is still valid and reflects how you want everything managed
  • You can make changes to, or cancel, your Power of Attorney, or name additional attorneys, as long as you are mentally capable. Some changes may require you to notify your financial institution, or anyone else that has a copy of your POA.
  • Continue to review your own financial matters on a regular basis for as long as you are able to do so. Giving a POA does not prevent you from continuing to manage some or all of your affairs, so long as you are mentally capable.
  • Check in with your attorney to understand how they are handling the responsibilities. You always have the right to ask questions and get answers.
  • If there are issues or concerns with how your finances or property are being managed, speak to someone at your financial institution or seek legal advice.
  • Know that signing a new POA, including one signed at a Bank, may cancel the one that you previously signed.
  • And lastly, if you move to another province or country, you should consider seeking legal advice to ensure that the document will be recognized there. You may need to sign a new POA for certain assets.
 

You May Consider the Following Various Provincial Forms and Resources:

Canada: Check out www.Canada.ca and search Power of Attorney;

Ontario: In addition to the comments in the section above, search www.Ontario.ca   Make a power of attorney;

New Brunswick: www.legal-info-legale.nb.ca This Province has an “enduring” power of attorney (EPA), where the authority you give to your chosen attorney continues even if you lose your capacity. This is distinguished in New Brunswick from a POA, where the attorney’s authority ends when you, the grantor, lose capacity. You can have an EPA prepared for property and for personal care. (see Enduring Powers of Attorney Act).

Also, please note who cannot be appointed as your attorney in this province under the legislation. This would include people that are convicted of an offence involving dishonesty (ie fraud or theft), anyone paid by the grantor to provide health care services to the grantor (unless you are a spouse, common law partner, or relative), if you are under 19 years of age, some specific situations where you are a separated spouse or former common law spouse, or if you have filed for bankruptcy or are an undischarged bankrupt.

Nova Scotia: www.gov.ns.ca/just/pda and the Personal Directives Act, 2008, c.8. Similar to New Brunswick, this province has an Enduring Power of Attorney. For health care decisions, a Personal Directive is also suggested. The site referenced above walks you through how to fill out the sample Personal Directive form, and highlights choices for you to consider. To appoint a person to make financial decisions, you will have to prepare an Enduring Power of Attorney. While you do not need a lawyer to write a Personal Directive or an Enduring Power of Attorney, it is highly recommended in situations where there are potential difficulties or there is a complicated estate planning situation.

There are certain people who cannot witness the signing of a Personal Directive. That would include:

  • The person you name as your delegate
  • The spouse of your delegate
  • Any person who signs the Personal Directive on your behalf
  • The spouse of a person who signs on behalf of the maker
 

By way of some suggestions regarding your Personal Directive:

(ⅰ) Keep a copy at home, in a special place, or store it on this site, and tell a trusted family member where it is
(ⅱ) Give a copy to your delegate, and your physician, or anyone else who will be providing care to you
(ⅲ) Take a copy with you if you are admitted to hospital or a continuing care home
(ⅳ) List the people you have given a copy of your Personal Directive to, in the event that you change to cancel your Personal Directive

Note that a Personal Directive only deals with decisions about personal care. POA’s and EPA’s largely deal with financial matters. So these are complimentary documents.

PEI: www.princeedwardisland.ca   (search Powers of Attorney and Personal Directives Act, Bill Number 48). The legislation in PEI is currently under review, but seems very similar to that of Nova Scotia.

Newfoundland & Labrador: The Province of Newfoundland and Labrador has put out an exceptional reference tool for seniors through the Public Legal Information Association of NL. It can be accessed at www.publiclegalinfo.com This Province also has an Enduring Power of Attorney and an Advance Health Care Directive which allows you to give instructions regarding your future medical care, and to designate an individual to make these decisions on your behalf when you are no longer able to do so.

Quebec: see: www.revenuquebec.ca; and: www.juridiqc.gouv.qc.ca  The Civil Code of Quebec doesn’t require a specific form for a Power of Attorney. A Power of Attorney in Quebec only covers the administration of assets. The person who grants the Power of Attorney is called the mandator, and the person who accepts it is called the mandatary. A Power of Attorney can be notarized or signed in the presence of witnesses, or it can simply be signed by the principal in the form of a letter. The notarized power of attorney is certainly the preferred form.

There is also, in Quebec, a document known as a Protection Mandate. This comes into effect if the person becomes incapacitated, as opposed to a Power of Attorney, which could cease to be valid if the person giving it becomes incapacitated. A Protection Mandate allows you to determine who will take care of you, and who will administer your assets as a result of illness, or where some deficiency or impairment caused by old age affects your mental state, or your health.

It is possible to combine a Protection Mandate with a general Power of Attorney, so that the Protection Mandate will continue on after the Power of Attorney ceases to be valid (ie after you have been declared incapacitated). The Protection Mandate will be used after a judgment has been obtained proving your incapacity, and confirming the validity of the mandate. With a Protection Mandate, the mandatary’s responsibilities extend beyond the mandator’s assets to more general and administrative matters.

As with some other provinces, In Quebec the grantor can grant a general Power of Attorney, or a specific\special power of attorney, for a particular purpose.

In Quebec, the Power of Attorney terminates when:

a) Both parties have fulfilled their obligations;

b) The obligations have become impossible to perform;

c) The mandator\grantor\donor revokes the power of attorney;

d) The powers given under the power of attorney have ended;

e) The mandatory\ attorney gives up the power of attorney; or

f) If either party dies, becomes bankrupt, or is declared incapable by the court.

When the power of attorney becomes invalid, this should be noted on the physical document by marking up the copy and informing the notary, so that they can mark up the original and any other copies. Financial institutions should be advised, as should individuals who had dealings with the attorney, that it is no longer valid. It would be advised to have them return all copies of the document.

Manitoba: www.gov.mb.ca Manitoba is another province where there is both a Power of Attorney and an Enduring Power of Attorney. Powers of Attorney in this province deal only with financial affairs, not with personal decisions. The authority under a Power of Attorney ends if the donor becomes mentally incompetent or incapable of managing his or her own financial affairs, A clause can be included in the Power of Attorney, however, allowing the attorney to continue to act if the donor later becomes mentally incompetent. This clause is called the enduring clause, and if it is included then the document is referred to as an Enduring Power of Attorney.

There is no required or standard form of Enduring Power of Attorney. In order to prepare an Enduring Power of Attorney, the donor must be mentally competent, and able to understand the nature and effect of the document being signed.

The Enduring Power of Attorney must be in compliance with provision 10 in The Powers of Attorney Act, CCSM c. P97 and it must:

. Be signed voluntarily, without duress or pressure from any other person;

. Be in writing;

. Be signed by the donor in the presence of a witness, or the donor must acknowledge their signature in the presence of a witness;

. Be signed by the witness in the presence of the donor;

. Provide that it is to continue despite the mental incompetence of the donor.

There are other requirements, in section 11 of the Act, regarding who can be a witness to an Enduring Power of Attorney, and from which professions they must be associated. Specifically, neither the attorney, not their spouse, can act as a witness.

The donor should determine what type of authority they wish to give the attorney, and it should be specifically set out in the document. In that regard, an Enduring Power of Attorney can be general in scope, covering all of the donor’s financial affairs and assets, or very limited (ie sale of a specific house).

We would suggest that you review the Power of Attorney Guidebook, put out by the Public Guardian and Trustee of Manitoba, for more detailed information.

Alberta: www.alberta.ca or www.open.alberta.ca/publications   Provisions in this province can be found in the Powers of Attorney Act, RSA 2000, c P-20, and are very similar to those of Manitoba. This province suggests that every Albertan over 18 should have a Personal Directive, an Enduring Power of Attorney, and a Will. This suggestion is made because if you lose your capacity and do not have an Enduring Power of Attorney, one of your family members or friends might have to go to court to become your trustee, which is very time consuming and expensive.

A Trusteeship Order gives the trustee power and authority to make decisions concerning the represented adult’s financial affairs. A Trustee cannot appoint a Power of Attorney for the represented adult, or change their Will, or buy or sell that person’s property beyond what is set out in the trusteeship order. A trustee also cannot make decisions on a represented adult’s health, unless they are also the Personal Directive or the guardian.

British Columbia: www.bclaws.gov.bc.ca The Power of Attorney laws in BC are governed under the Power of Attorney Act RSBC 1996 c 370 and related Regulations. These are very similar to those in Manitoba and Alberta, however you should note that if you own land\property, or plan to in the future, you may need to get your Power of Attorney notarized in addition to having the document witnessed. Notarization is required in BC in the event your attorney is trying to sell or act on behalf of a property you own. Otherwise it is not required to make the document legally valid.

An Advanced Directive or a Personal Directive is an optional document, also known as a “living will”, that enables you to express your wishes to accept or decline specific medical treatments, such as life support, if you are unable to do so at the time.

Saskatchewan: www.saskatchewan.ca A grantor may appoint a personal attorney, a property attorney, or both a personal and property attorney. A Power of Attorney may be general, covering all of the grantor’s personal affairs, (in the case of a personal attorney), all of the grantor’s property affairs (in the case of a property attorney), or all of the grantor’s personal and property affairs (in the case of a personal and property attorney), or it may be specific, limiting the attorney’s authority to a specific purpose, such as the sale or mortgage of a property on the grantor’s behalf.

As with other provinces, an Enduring Power of Attorney states that it is to continue in effect if the grantor becomes incapacitated. There are two types of Enduring Powers of Attorney:

  • One that takes effect immediately; or
  • One that comes into effect on a specified future date, or on the occurrence of a specific event, such as when the grantor leaves the country for an extended period, or becomes mentally incapable. This is referred to as a contingent or springing Power of Attorney.

Also similar to other provinces, the requirements for an Enduring Power of Attorney include that it be in writing, dated and signed by the grantor, and properly witnessed by either a lawyer, or two competent adults, neither of whom can be family members of the grantor or the attorney. Approved forms for Saskatchewan Enduring Powers of Attorney are on the government site.

In the event that you choose to prepare this document on your own accord, we would suggest that you familiarize yourself with the requirements of who can and cannot be appointed as an attorney. Enduring powers made outside of the province are still valid if they were made in accordance with the law of the place they were made.

Nunavut, Northwest Territories and Yukon: www.gov.nu.ca;  www.justice.gov.nt.ca; and www.yukon.ca Powers of Attorney Act, SNu 2005, c 9 and Enduring Power of Attorney Act, RSY 2002, c. 73 and Powers of Attorney Act, SNWT 2001, c.15. Similar to the requirements in Saskatchewan, a Power of Attorney in these jurisdictions is only in effect while you are still alive. More particularly, it is generally invalidated once you are no longer mentally fit. An exception to this rule would be with an Enduring Power of Attorney, as referenced above. In Nunavut, Yukon and the Northwest Territories there is also provision for a contingent or springing Power of Attorney. It is recommended by the provincial governments of all three locations that you seek legal advice before signing a Power of Attorney.

Is setting up a Joint Bank Account Another Option?

Certainly, joint accounts are convenient and practical where partnership and trust are factors in a relationship. In a right of survivorship situation, because the asset automatically passes to the survivor, the asset essentially bypasses the deceased’s estate and probate process. This could, depending on the circumstances, circumvent having to pay probate fees, however different rules and fees vary from province to province.

 Before opening up a joint bank account, consider that:

-Your credit rating could be affected by being financially linked to the other person. Companies may check both of your credit histories as part of a credit check, and if the other person has a poor credit history, this might lower your chances for approvals.

-The money held in a joint account belongs to both account holders. This means that either person can withdraw or spend the money on deposit, even if they weren’t the one to deposit the funds. While a joint account is useful for handling shared expenses, the bank will make no distinction  between money deposited by one person or the other. Each account holder can get a debit card, write cheques and make purchases. Only open a joint account with someone you trust.

-Where one person withdraws more funds then there are in the account, the other account holder will also be liable for any overdraft fee.

-Should a disagreement arise over management of the account, and there be a desire to close the account, you will have to remove the other person as a joint account holder, and there may be disagreements on how to divide the funds.

-There are certainly legal and tax implications based on various factors, including the account’s ownership, survivorship rights, and which province you live in. Consider speaking with your legal and tax advisor before you set up a joint account. In Quebec, for example, joint accounts are frozen upon the death of an account holder.

-There could be issues where a creditor of one of the parties seeks to satisfy a debt by seizing the entire account. Before opening a joint account, consider discussing boundaries around saving and spending with the other account holder. Creating a joint account can certainly be a useful tool for managing shared expenses, for convenience and for assisting with aging parents’ financial affairs.

-There may also be tax implications on joint assets, in that they could be considered deemed dispositions. Much depends on whether the joint owner is a spouse or an adult child. A disposition occurs, under the Income Tax Act, when there has been a change in the beneficial ownership of an asset. Capital gains may be triggered, for example, when an adult child is added to an account. Different tax consequences arise if the account is set up with a spouse, as tax laws seem to permit property to be transferred between spouses at the adjusted cost base, rather than at fair market value, meaning that tax on the appreciated value of the asset can be deferred until the asset is sold. As to who is responsible for the taxes, each account holder would be equally responsible for the tax liability based on their portion of ownership. Again, advice from your financial advisor is highly recommended. 

If you have placed money in a joint bank account for convenience, and named an adult as a joint account holder, that account will not necessarily be considered to belong to the joint account holder when you die. What happens to money in a joint account is dependant upon your intention. Whether you want the account to be gifted to the person named on the account, or to form part of your estate, you should make your intention clear in your will. If the beneficiaries of your estate cannot agree on what your intention was, the issue would normally be determined by a court.

The use of joint bank accounts in the context of estate planning should be discussed with a lawyer or a financial planner.

Here is a TFSA Tip:

Whether or not you choose to name a successor holder, you spouse, common–law partner, kids, relatives or friends can otherwise be named as beneficiaries of your TFSA. There are different tax rules for beneficiaries vs successor holders. Your TFSA is tax free to your beneficiary until the date of your death. Where that TFSA increases in value after your death, the gains that occurred after that are taxable while they remain in the deceased person’s TFSA until paid to the beneficiary. This is where the successor holder designation can be very beneficial.

Transferring funds held in your TFSA to a surviving spouse or common law partner’s TFSA must be done by the end of the year following the year of death. We suggest that you ask the company holding your TFSA to make the adjustment.

Letter of Wishes:

A Letter of Wishes is not intended to replace a Will, but may serve to further elaborate on the reasoning behind certain bequests, and to provide instructions and guidance in how you would like your estate to be administered. The letter should be signed and dated, but it does not become a publicly available document like a Will. It does not require witnesses.

While mention can be made of your wishes for funeral instructions, who to notify of your death, and how you would like your personal items to be distributed, it can also provide instructions to your trustees\executors on how you would prefer your money to be managed. It can certainly be updated, as circumstances change. Because of its contents, some of which may relate to the funeral or memorial arrangements, it should be kept with your Will.

Of course, to the extent that this is a Letter of Wishes, you can express your personal sentiments [for wealth, success, love, health or happiness], or best regards, or as advice in a short and heartfelt manner.

A Sample:

To My Executors, My Family, My Beneficiaries, and to any other person to whom it may concern:

  I [name], currently of [address], choose to share my wishes with respect to my [gifts to charity, my bequest of my automobile, my bequest of my stamp collection, etc]. I understand that this Letter of Wishes imposes no legal obligation on you, but it expresses my wishes, to which I hope you will have due regard.

I request that my gift of [amount and\or mention of specific bequest] as set out in my Will, be directed to [where it is needed most, endowment, or a specific fund] in accordance with my wishes detailed in my Will. I would prefer that the gift not be used to support [detail any exclusion to the fund].

OR: I am aware that my Will makes no provision for [child\spouse\relative’s name]. I do not wish [name] to have any benefit from my estate because [give reasons], so I would ask that my trustees\executors not make any distribution to them.

This Letter of Wishes does not change or revoke my will.

Signed _____________________

Dated______________________

As part of this process, you may also wish to share messages and memories with an individual. For confidentiality purposes, you may choose to print these out and put them in a sealed envelope, with the name of the recipient on the envelope. Remember, a Letter of Wishes is not binding. It provides guidance to individuals dealing with your estate, and any trusts, after your death.

When I'm Gone

Blank Form (#3)

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.