Estate Planning in Ontario
Taking the time now to plan for the future will reap many benefits for you and your family. It’s important that your will provides security for your family, protects against unanticipated scenarios, avoids complications, and distributes your assets (including digital) properly. Powers of attorney must be informed by your values and goals so that your legacy is protected according to your wishes.
What is a will?
Your will is a legal document that describes your estate plans, and can include your burial wishes and guardians for any children who are minors. The main two elements as it relates to estate planning are:
- Naming an executor responsible for managing your affairs, and listing their powers and obligations
- Detailing all beneficiaries as well as how your assets will be managed and distributed to them
When should you get a will?
We’d recommend anyone over 18 be proactive about estate planning and make a will. It may seem unusual for younger adults, but making a plan early can save money, taxes, headaches and stress on families later. It can be updated anytime as your life circumstances evolve.
Why is a will important?
Wills bring authority and peace of mind that your affairs will be managed the way you want after you pass away. It also significantly reduces stress on loved ones who otherwise may have to go through bureaucratic, lengthy processes. That’s because, without a will, your assets and decisions are left to the Court and the laws of Ontario.
How do lawyers help with wills?
Estate lawyers will give the advice and expertise you need to draft a will that upholds your wishes and stands up to the laws of Ontario. Our team will ensure all aspects are covered, no important gaps are left, and that costs and taxes are minimized in the future.
What is a Power of Attorney?
A Power of Attorney is a legal document that gives someone you choose the authority to make decisions about finances, property and/or health (“personal”) care for you.
Who can hold a Power of Attorney in Ontario?
Anyone can be appointed as your “attorney” as long as they are capable and of age. For POAs for Property (re: assets and finances), they must be at least 18. For POAs for Personal Care (re: your health care), they must be at least 16.
What can a Power of Attorney do in Ontario?
An attorney for your Personal Care can make decisions around health-care, nutrition, shelter, clothing, and other aspects of personal life. An attorney for your Property can take actions about financial affairs including bills, property, savings, and more.
Does a spouse automatically have Power of Attorney?
When it comes to your Property (which includes your finances), a spouse does not automatically have Power of Attorney for you. Without a POA for Property, a family member or another person may need to apply to be a court-appointed guardian. Such applications, though, are extensive, time-consuming, and costly. When it comes to your POA for Personal Care, a spouse can make some decisions, but not all. Our lawyers will guide you through all of these questions.
Do you need a lawyer to make a legal Power of Attorney in Ontario?
You don’t need a lawyer to prepare or witness a POA. But institutions such as banks often prefer lawyers to be involved so that any risk is properly managed. We’d recommend that legal advice is always a good idea when managing such important matters as a Power of Attorney.
What are the legal limitations of a Power of Attorney?
You can choose to put limits on a Power of Attorney but in general, an attorney for property can manage all finances and an attorney for personal care can make all health-related decisions if you don’t have the capacity to make them yourself. No attorney can make or change a will.
Who can override a Power of Attorney in Ontario?
While you still have capacity, you can revoke any Powers of Attorney at any time. If you lose capacity, a POA can’t be revoked, but can be challenged in court.
How much does it cost to get a Power of Attorney in Ontario?
The cost to draft a POA or a will varies depending on how you’re creating it and how complex your estate is. At LLDG, our package starts at $1,000 (or $1,500 for a couple) to cover a will, POAs for Property and Personal Care, and an “advance directive for medical care” (living will).