Personal Protection Planning

1. Personal Protection Planning W. Bruce Drake Hooey • Remus Make a Will Month 2005

2. Make a Will Month • Presented by the Law Society of Upper Canada and the Canadian Bar Association (Ontario) and sponsors • Barriers for Don’t Power • Lack of Knowledge • Time • Access/Cost • Kit Contents

3. Will Power - Overview • Burdens of no will • Advantages of a will • Considerations and Special Care • Advantages of a power of attorney for property • What is a power of attorney for personal care? • Pathway to peace of mind

4. Dalton will help you! • Law of intestacy applies • Table of Consanguinity

5. Intestacy - a traditional family • Legal spouse - no children • All to Spouse • Sleep Mode (15 minutes) • No: separated spouse, common law life partner, same-sex partner, bequests, charitable gifts, insurance, RRSP or pension designations, funeral, burial or cremation wishes, organ donations

6. Intestacy - oh-oh • Legal spouse - no children • All to spouse • major red alert if separated from spouse • no recognition of common-law • no recognition of same-sex partners

7. Intestacy - A child • Legal spouse - 1 child • First $200,000 to spouse • 1/2 of remainder to spouse • 1/2 of remainder to child • #1: minor’s share held by Children’s Lawyer • may be a problem for family home • child may be from a prior marriage

8. Intestacy - Kids • Legal spouse - 2 or more children • First $200,000 to spouse • 1/3 of remainder to spouse • 2/3 of remainder split equally among children • #1: minor’s share held by Children’s Lawyer

9. Intestacy - Kids • No legal spouse but children • Equally among children • #1: minor’s share held by Children’s Lawyer • no recognition of unmarried parent of child • no recognition of different needs • no recognition of multiple families • no recognition of unequal advancements during lifetime

10. Intestacy - to Mom and Dad • No legal spouse or children but parent(s) • Equally between parents • OK unless have a life partner to whom not legally married or unsatisfactory relationship with parents

11. Intestacy - Thanks Bro’ • No legal spouse,children or parent(s) but brothers and sisters • Equally among • siblings • different needs • life partner

12. Intestacy - My favourite aunt • No spouse, children, parent(s), brothers or sisters but niece(s) or nephew(s) • Equally among living nieces and nephews • no recognition of different needs • no recognition of children of nieces and nephews • life partner

13. Intestacy - The Stretch • No spouse,children, parent(s), brothers, sisters, niece(s) or nephew(s) but next of kin of equal degree (cousins) • Equally among cousins • life partner • location

14. Intestacy - A Winner! • Equally among cousins • Make an estate lawyer • very happy

15. Intestacy - Homer says Doh! • No legal spouse, children, parent(s), brothers or sisters, niece(s), nephew(s) or cousins • NOT #1 but ... • lost to the Government of Ontario by doctrine of escheat

16. Burdens of Don’t Power • Law of intestacy applies (Thanks, Ernie) • Choice of trustee decided by a judge • Minor beneficiaries interests administered by a government lawyer called the Children’s Lawyer • Bonding • More expensive and slower

17. Have it Your Way Benefits • Certainty- Your way, not Ernie’s way • Trustee • Distribution • Lifestyle • Special Situation Bequests • Tax Planned • Minimize administration costs • One is good - two can be better • Overall best legacy - peace of mind

18. What do I need to think about? • Choice of trustees • Backup trustees • Specific gifts • Distribution plan • Designations • Special wishes • Minor children

19. Trustees do the work • Ability, agreement and accessibility • Professional help • Number • Majority rule or unanimity • Backups • Administrative Powers

20. Remember Me - Specific Gifts • Keepsakes • Cottages • Charitable gifts • Specified purposes • General purposes • Special Needs

21. Plan - I’ve Got a Little List • Almost complete flexibility • All to spouse and children is still most common • Lifestyle (multiple relationships, life partner) • Postponement for minors • Tax considerations • Joint ownership considerations • Real estate • Bank accounts

22. Other Beneficiary Designations • Life insurance • RRSP • Pensions

23. My Way - Special Wishes • Funeral • Burial/Cremation • Organ donation

24. Guardians for Minor children • Effective for 90 days • Not binding thereafter but relevant for court

25. Special Care Situations • Marriage • Divorce • Family Law Act • Community of property • Dependants • Spousal election • Foreign executors or property

26. A Will Needs Regular Review • Changed financial situation • Trustee or beneficiary dies • Divorce, separation or new child • Changes in the law

27. End Sleep Mode • Time for a new topic of interest to all: Powers of Attorney

28. Power of Attorney for Property • Empowers a trusted person or persons • Continuing effectiveness • Difficulties when no power • Considerations

29. Personal Care • Different purpose • Empower a trusted person • Effective on disability • Living will effect • Consequences of no power • Considerations

30. Why bother? • Survey says: about 50% do not have a will • Certainty • Peace of mind

31. How do I get one? • Lawyer • May be available free from a prepaid legal plan • Family lawyer or friend’s suggestion • LSUC Lawyer Referral Service 1-900-565-4LRS (4577); cost is $6.00 per call • Hooey Remus Make a Will Month consultation

32. How do I get one? • Trust company • Will kits, stationers’ wills, Gov’t POA • Holograph will

33. Make a Will Month • Sponsored by: • the Law Society of Upper Canada • Canadian Bar Association (Ontario) • Sun Life • CIBC Trust • Certified General Accountants Association of Ontario • Canadian Cancer Society • Heart and Stroke Foundation