A trust is similar to a will, but instead of your assets being transferred to your estate when you die, your assets are transferred to the trust while you are alive, allowing you to maximize the benefits of your wealth. A trust can be used in a variety of ways, from providing an education fund for a grand child to giving a charity a sizeable amount of money. Trusts can also allow you to reduce capital gains upon death and defer or minimize taxes.
Why do I need a will?
Anyone who has property, RSPs or employment benefits, and anyone who has children needs a will. You should review your will every two or three years, or when you or your family experiences a major change in personal circumstances.
The Enduring Power of Attorney
An Enduring Power of Attorney (EPA) is a document that you sign while you still have capacity, which enables someone else to look after your finances when you cannot. If you do not have an EPA it will be necessary for someone to apply to the courts for an order of Trusteeship should you become incapacitated.
The Personal Directive
Should you become incapacitated, the Personal Directive gives your appointed agent the authority to determine where you live and the kind of medical treatment you receive, ,as well as other personal decisions not dealing with your assets.
Estate Administration
If someone dies and you are named as executor there are many tasks to undertake and decisions to make. Usually there is need for an application to the Court for a Grant of Probate or Letters of Administration as well as appropriate notification to creditors and beneficiaries. Tax issues, as well as other issues, surrounding the nature of the assets in the estate also need to be addressed. Finally, dealing with the various beneficiaries, including distribution to those beneficiaries is necessary.
Estate Litigation
We have seen over the years a trend towards more litigation in estates. Everything from allegations of lack of capacity to not providing adequately for those left behind are reasons for litigation. However, by working closely with our clients and taking the proper approach these matters can often be settled without litigation.
