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Retirement Planning: Estate Planning
Estate planning isn't about you, it’s about protecting and providing for those you love. By ensuring that your assets pass to your chosen beneficiaries without undue expense or delay, you are lessening the burden of coping with your death. There are many strategies that can be used in estate planning, but the most basic of all is to draw up a will. Making a Will A will is a written document setting out your wishes regarding the disposal of your property at death. A will is also used to name a guardian for minor children (under 19 years of age in the Yukon). A will can also include special wishes about burial or cremation, and may include consent to the use of the body for therapeutic purposes, medical education or scientific research. However, be aware that sometimes a will isn’t read until after burial takes place! Make sure that you discuss your wishes with your loved ones while you still have the opportunity. What happens if you die without a will? A person who dies without a will is said to die intestate. If you die intestate, your property goes to your living relatives in a certain order of priority. The order of priority is set out in the Estate Administration Act of Yukon and also in the Indian Act for certain groups of status Indians. Many people assume that, if they are married, the whole estate goes to their spouse. However, this is not necessarily the case. If you have children, some of your assets could go directly to them. The intestate distribution doesn’t happen automatically. Someone will have to step forward to apply to be the administrator of your estate - a costly and lengthy process. While this application is in progress, your assets will be frozen. Consider the impact if no one can sell your shares for months while the market is taking a nosedive and the administrator of your estate has not yet been appointed! Without a will, you have no opportunity to name a guardian for your minor children, should you and your spouse die together. The courts will have to make this decision for you. If you're in a common-law relationship, or are separated from a legal spouse, don't assume that he or she will be protected by intestate distribution of assets. A common-law spouse has no property rights, and will not receive an automatic share of the estate under the Estate Administration Act. They may, however, be able to make a claim under the Dependants Relief Act. The same situation applies to legally married spouses who have been separated for at least one year. We recommend that you consult with a lawyer for further information about drawing up a will. Click on the link below to go to a checklist that will help you to organize the information needed for meeting with a lawyer:
Power of Attorney The executor that you name in your will has authority to act only after your death. The person that you name as "attorney" can act on your behalf during your lifetime. A power of attorney allows you to give someone else the ability to handle financial transactions and/or make medical decisions on your behalf. They could buy or sell investments, write cheques on your account, and access your safety deposit box. This is useful in the event that you're travelling outside of the country and need someone to handle things at home, or if you happen to be injured in an accident, or become physically incapacitated due to illness. However, it requires that you place a significant degree of trust in the other person to manage your affairs in your best interests. An ordinary power of attorney becomes invalid if you become mentally incompetent. An enduring power of attorney can either continue if you become incompetent or only take effect if you become incompetent. There are special requirements under the Enduring Power of Attorney Act before an enduring power of attorney is valid. One of these is a certificate of legal advice signed by a lawyer. You may wish to discuss the power of attorney with your lawyer at the same time as you have your will drawn up.
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Last Update: 2005-08-22