Despite the fact that everyone knows the importance of having a current and up-to-date will and powers of attorney most people don’t think about their wills until the day before leaving on vacation. A recent survey of 544,000 Canadians with assets exceeding $1.5 Million reported that only 40% have a will and 80% of those wills are not up to date. Where do you fit?

In addition to the will, everyone needs to complete two (not just one) Powers of Attorney:

• Continuing Power of Attorney for Property - You name someone to make financial decisions for you, such as paying your bills, managing your investments, etc.
• Continuing Power of Attorney for Personal Care - You name someone to make personal care and health decisions such as where you live, what you eat or what medical care you will receive if you get sick or injured

Powers of Attorney are the Rodney Dangerfield of Estate Planning - they get no respect.  Many Canadians may have a will but they don’t have powers of attorney which are often even more important because there is a 5x greater probability of getting sick before age 65 then dying. This recent situation involving two sisters demonstrates the importance of Powers of Attorney.

Caution: this true story includes  unexpected illness, unnecessary professional fees and avoidable financial losses.

Carol and Cheryl are Canadians now living out of the country. We met before they emigrated. Their mother had suffered a stroke many years ago and their father had been taking care of her. They contacted me last year in a panic. Unfortunately, Dad suffered a sudden stroke too and now both parents were incapacitated and required round the clock personal care. In case you are wondering - no, they did not have Long Term Care Insurance.

Nor did Mom and Dad have completed Powers of Attorney, which prevented the daughters from simply having access to their bank accounts and other assets. Without completed Powers of Attorney the government has to appoint a Public Trustee to make certain decisions for you, and that’s exactly what happened. The Public Trustee was put in in charge. In addition, the girls had no idea where their parents kept any of their financial paperwork.  Where was the bank account, account #’s, digital passwords, etc.?

The sisters were depleting their personal resources covering the costs of both parents in a Long Term Care facility. They needed help to navigate this situation and so they called me.  I recommended professional help from an experienced estate lawyer and referred them my friend and client Shael Eisen, of Eisen Graham, a specialist in Estates and Trusts.  He advocated for the sisters and, after many months of family aggravation, Shael successfully wrested control of the family assets away from the government and back in family hands.

Most of those problems could have been easily avoided had the parents used the Free Estate Planning Toolkit available at my website. It contains:

1. Estate Directory - What if something happens to you? Will your spouse and children find every important document easily? Examples: wills, powers of attorney, bank accounts, life insurance, etc.
2. Estate Planning Checklist - Organize your estate efficiently and eliminate taxes with this valuable checklist.
3. Executor Duties Checklist - Does your executor know what do? Keep this document with your wills.

Financial strategies for aging parents are becoming more important than ever. Read “Coping with Care”, my article just published in The TaxLetter HERE.

Don’t put things off for tomorrow.  We never know what tomorrow will bring.  Take care of these things while the “sun is shining”, and get peace of mind now.