Wills, Estates and Trusts

When someone passes away, the assets, debts, associated court and other costs must be dealt with by someone or multiple persons. This person has in the past been called the executor of the estate but more recently referred to as a personal representative (PR). The PR is responsible for locating assets, paying funeral costs, applying to the court for probate if necessary, paying off debts using the deceased’s help, and distributing the remaining money and property according to the will. If you are a personal representative, you should consult a lawyer on the proper process and steps necessary to administer the estate.

If you are over 18 years old, it is essential to begin some estate planning. Estate planning includes more than just what happens to money. It ensures that you are taken care of if you become incapacitated, allows your loved ones to pay your bills when you can’t, and helps ensure your last days are comfortable for you and easy for your family. It is even more critical if you have children. Through estate planning, you can appoint a guardian for your children and a trustee to ensure they go to the best home and are financially taken care of.

A Will directs how your property will be distributed after your pass away. It can be as specific or as general as you like, subject to certain restrictions. It also names the person or people you want to administer your estate. A Will also designates guardians and trustees for parents of minor or dependent children. Your assets are distributed without a will according to Part 3 of the Wills and Succession Act. To distribute those assets, someone must apply to the court to administer the estate, which costs time and money. Do you want to leave your loved one with uncertainty and extra costs right after you pass away? If not, reach out to North & Company LLP.

Personal Directives come into effect if you suffer from a severe injury or illness and cannot make decisions on non-financial matters. The trigger for Personal Directives requires at least one Physician or Psychologist to consult on the impact of their decision-making capacity. The document allows you to choose someone you trust to act on your behalf after you’ve lost capacity.

Imagine you are in an accident and lose your ability. To make matters worse, you need some dental work. You cannot consent to the dental work, and you remain in constant pain, and there is nothing your family can do to help. It’s too late. Personal Directives is a have and not need than need and not have type documents. Like a Will and EPA, everyone should have one.

An Enduring Power of Attorney (EPA) is delegating authority to someone else to make financial decisions on your behalf. Authority is given at anytime and can be designed to take effect if you lose capacity. Whether it is a severe illness or you have a family history of dementia, this document allows the person you choose as your agent to take care of your finances when you cannot.

When someone passes away with money and property still in their name, the estate executor will likely require a grant of probate or a grant of administration. Probate affirms the validity of the will and the executor’s authority to handle the deceased’s assets. A grant of administration is applicable when the deceased did not have a will, and someone applies to the court to administer the estate. In either case, banks, the land titles department, and other institutions will typically only release information or assets with probate or a grant of administration, protecting both the executor and institutions from liability. These processes can be tricky, and it is best to consult a lawyer.