2. For most of our lives, our parents Gather Information If one or both parents own a business, If not, should they be enrolling child, so that if both parents become BROACHING THE SUBJECT
have been the ones we’ve turned you’ll need to determine if they may in such plans? mentally incompetent, a backup Ideally, your parents may raise
We can help assemble a clear picture
to for support, advice, and finan- consider selling the business at some It’s important to note insurance person is ready to step in. the topic; perhaps they are only
of your parents’ assets, income
cial help. But as our parents age, point. If that is not an option, they policies your parents may have and Committeeship—If power of attorney waiting for a sign from you that
sources, and anticipated expenses.
they may need to rely on us as should have a business succession whether or not they are adequate. has not been assigned and mental
you’d be willing to help them set
we once did on them. On average, Income—We can help you identify plan which identifies partners, share- their affairs in order. They may
You may wish to explore critical ill- incompetence becomes an issue, be unsure where to start or what
Canadian men now live to 78 years your parents’ income sources and any holders, or family members with an ness insurance which pays a lump committeeship by a responsible adult to do, and you may need to find
of age, women beyond 80. Most conditions that apply. For example, interest in the business. We can sum in the event of certain critical must be sought through the courts. a way to broach the subject.
enjoy good health until their mid- a deceased spouse’s Canada Pension review options and help your parents illnesses to cover future costs of The process costs time and money, For example:
70s, when incidence of physical Plan benefits drop by 40 per cent make a choice they and other poten- extended medical or personal care. and the province’s public trustee 3 When friends or neighbours
illness increases dramatically, to the survivor. tially affected co-owners are comfort- Often, adult children buy insurance may have to step in while the issue experience a difficult situation.
along with chronic mental illness- You should record these points as well able with. for parents. Premiums may be more is resolved. “I heard about Lillian’s illness,
es. All of these can rob people of as details like location and contents Mom. I’m so sorry—but you
Expenses—First your parents’ exist- costly, but illnesses covered can be Personal Care Decisions and Health
their abilities to make decisions of bank accounts and safety deposit know I wonder sometimes
ing expenses must be identified, then debilitating for a lengthy period. Care Directives—Many provinces
and deal with life’s daily routines. boxes. Our Personal Financial Review what you’d like us to do if
contingent expenses considered. authorize the use of documents that
will also help tally household expenses something like that happened
Many of our parents will live long Ultimately, one or both may require Put Legal Documents in Order appoint someone to make personal to you. Perhaps we should
and remain healthy, vibrant people. and taxes. home care or personal care homes.
Enduring Power of Attorneys— care decisions when you are not able talk about it now.”
But developing strong plans now Assets—Have your parents designat- Some provincial health-care systems to do so. Such documents can also
Through an enduring power of 3 When you’re arranging your
can limit future erosion of family ed beneficiaries for their registered may not provide for care as you would be used to give instructions on condi-
attorney parents can appoint a per- own affairs. “Dad, I’m revisiting
finances should parents need cost- investments and insurance? If an want, and the cost of meeting their tions under which an individual my will now that my financial
son or persons to make decisions
ly medical, home, or institutional RRSP or RRIF’s beneficiary is the needs may fall to them—or to you. would not want invasive or “heroic situation has changed a bit.
concerning property and financial
care. As well, setting key legal surviving spouse, the funds transfer How about yours? Should we
If you discover shortfalls are likely, affairs. A power of attorney can be measure” medical care to continue.
mechanisms in place now will automatically on the plan owner’s both do it together?”
you and/or your parents may explore general in application or limited to Should your parents be considering
enable our parents’ finances to be death. Whether the beneficiary is the 3 When you come across written
more aggressive options. Talk to us dealing with certain assets or money such documents, they will want
responsibly administered in the estate or the spouse, it is possible to material that deals with the
about stategies to handle the finan- in particular accounts. Enduring extremely careful wording to ensure
future, should they become unable defer taxation until death of the second subject. “My financial advisor
cial load. powers of attorney that are general both legal and medical terminology
to make their own decisions. sent me this information, Dad,
spouse. But if others are beneficiaries, in application are often between
Insuring Peace of Mind—Do your is accurate. Your parents should con- and it’s really interesting. We
the estate may have to pay tax. These spouses, and make handling family could go through it together
parents have extended health care sult a lawyer and a physician, and
can be complex decisions we can help finances much easier should one of and see where you and mom
insurance plans? If so, what are revisit the document periodically to
sort out. them become incapacitated. Powers stand with all this.”
the conditions and limitations? ensure their feelings haven’t changed
of attorney limited to specific and that the wording remains med-
accounts are often used to facilitate ically valid. Alternately, they might
the payment of bills. leave such decisions to whomever son’s own handwriting, dated, and
ESTATE TRUSTEE—NOT A JOB FOR EVERYONE The enduring power of attorney has power of attorney, after providing signed, are legal in some provinces.
takes effect as soon as the document guidelines to that person, but the But holograph wills often fail to
In Quebec it’s called the “Liquidator.” In many other provinces it’s the express intentions in adequate legal
is signed, and can continue when a power of attorney itself may not be
“Executor.” But regardless of what name it goes by, it involves time- terms and the courts may not interpret
consuming responsibilities. Very often parents select one of their adult person becomes mentally incompe- sufficient to provide the authority to
tent, provided a clause to that effect others to make health-care decisions. the will as intended. Do-it-yourself will
children for the job. Before you accept, be sure you understand that it’s
more than an honorary role. You will need to: is inserted in the document. Another kits have become popular, but cannot
Wills—About fifty percent of address points unique to your parents’
alternative is the springing power of Canadians don’t have wills. Yet with-
3 Determine, locate, and notify 3 Arrange for payment situation. Such kits are unlikely to
beneficiaries of all debts attorney, where the authority granted out it, legal fees can mount if dispo-
under the power of attorney does not maximize inheritances your parents
3 Arrange for burial or cremation 3 File an income tax return for sition is contentious, the deceased may want kept secure for heirs.
and a funeral service the year of death and returns become effective until the person person’s wishes may not be taken
for the estate who granted it becomes mentally into account, and survivors have to Only sound financial, legal and
3 Apply for life insurance benefits
3 Administer testamentary trusts incompetent. deal with the situation while coping accounting advice will accomplish
3 Prepare an inventory of the
estate’s assets and debts 3 Distribute estate assets It may also be advisable to assign with grief. that goal. We can help your parents
a contingent or secondary power of determine tax liabilities flowing from
Holograph wills, created in the per- their estate, and can suggest options
attorney, perhaps to a trusted adult
