Planning for Incapacity
The final component of your estate plan should address
potential situations where you may become physically or mentally
incapacitated. This is achieved by creating an enduring power of
attorney. Without an enduring power of attorney, your attorney
(not necessarily your lawyer or notary) cannot act on your behalf
during a period of incapacity until they receive court approval.
For Quebec residents, the enduring power of attorney document is
referred to as a mandate (in anticipation of incapacity). In Quebec,
a notary or lawyer can draft mandates. It is important to note that
all mandates terminate if a court-ordered curator or tutor is appointed
or the persons you appoint die before your death. You can revoke a
mandate at any time, so long as you are mentally competent.
Please choose from the following links for more information on
planning for incapacity:
Power of Attorney
The most common form of this document, a financial power of attorney,
is also referred to as a power of attorney for personal property or
financial decisions. The authority that you give the individual acting
as your "attorney" (for Quebec residents, a "mandatory")
can be either limited to specific activities or assets, called a "
limited power of attorney," or can provide the attorney with
wide-ranging control of your financial affairs called a "general
power of attorney."
A power of attorney may be temporary or of indefinite duration, but
in all cases the authority provided by this document ends upon your death
or incapacity. The appointment of a committee or guardian by a court
order will also terminate a power of attorney.
Enduring Power of Attorney
It is important to note that the power of attorney document
(general, limited or financial) will not be valid if you become
mentally incapacitated unless it specifically states that the
attorney's authority is to be maintained under this circumstance.
Additional wording is necessary to ensure the document is considered
enduring in subsequent mental incapacity. This is commonly referred
to as an "enduring power of attorney."
Your power of attorney/mandate should be created with the assistance
of a lawyer or notary to ensure it accurately reflects your wishes.
For British Columbia residents, there is now a representation agreement
that will allow adults to appoint representatives. If the adult should
lose mental capacity, these representatives can have authority to make
decisions about the person's legal affairs, financial affairs, personal
care and health care needs if necessary.
The representation agreement is an additional document that can be
utilized alone or in conjunction with an enduring power of attorney.
Living Wills
The provinces of Manitoba, Ontario, Quebec and Nova Scotia all have
legislation allowing for the creation of what is commonly referred to as
a living Will. Depending on the province, a living Will may also be
referred to as a power of attorney for personal care, a mandate, a
health care directive or proxy, an advance directive or a representation
agreement.
The purpose of a living Will is to provide instructions regarding
your medical care if you were to become incapacitated and unable to state
your wishes. This document may indicate the type of treatment you may or
may not wish to receive. A living Will should be created with the
assistance of a lawyer or notary and discussed with your family physician
and family members.
Pre-Planned Funeral Arrangements
When funeral arrangements are pre-planned there is considerably less
potential for stress, confusion and mistakes. Making arrangements for
a loved one in a rush can cause additional pain and costs at a difficult
time. For this reason, more and more Canadians are considering pre-planned
funeral arrangements as part of their estate plan. This allows for family
input, minimizes the chances of additional costs and ensures your wishes
are followed without burdening family members.
Take the next step…talk to an advisor.
Our Investment Advisors
are here to help recommend the solutions that are best for you. To learn
more, please contact an advisor
today. Or, ask an advisor to contact
you.
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