ESTATE PLANNING

When it comes to creating an estate plan, having three essential documents is crucial: a Will, Power of Attorney, and Personal Directive. These documents ensure that your wishes are carried out and that you have designated persons to make decisions on your behalf if you are unable to so.

Last Will & Testament

Power of Attorney

Personal Directive

A Will is a document that comes into effect once you have passed away. It sets out your wishes such as naming of guardians for the children, gifts to your beneficiaries, provisions for pets, and the authority of your executors. You can also create testamentary trusts within your Will. If you pass away without a Will, your estate is distributed intestate. This may result in undesired gifts, transfer of funds to children at the age of 18, and significant legal fees.

The Enduring Power of Attorney comes into effect while you are still alive. Based on the language of the document, it may be effective immediately on signing or when you lose mental capacity. The person(s) you name in the document will be able to make financial decisions and take steps to manage your assets and debts while you are incapable. Often, clients ask for this document to be effective only if they are unable to make decisions for themselves, such as medical emergencies. Learn more in our article: Why you Need an Enduring Power of Attorney: Understanding the purpose and benefits.

A Personal Directive comes into effect while you are still alive but unable to make medical and personal care decisions for yourself. The person you name will be able to decide on your medical treatment, where you live, who you interact with, and other daily needs. The document can come into effect once a doctor determines you are incapable or immediately on signing. Learn more in our article: Top 7 Situations where a Personal Directive is Essential.

ESTATE TOOLS...

Trusts can be a valuable tool for anyone looking to protect their assets and provide for their loved ones. However, with so many different types of trusts available, it can be difficult to know where to start. Let us help.

Codicils are utilized to make minor changes to your existing will. They allow you to update your will without having to create an entirely new document. Talk to one of our lawyers to see if this is the right option for you.

TRUSTS

Purpose

Trusts are an important aspect of estate planning. They allow you to transfer assets to a trustee who will manage and distribute them as you wish. Trusts can serve a variety of purposes, including protecting assets for minors, avoiding probate and protecting assets from creditors or lawsuits. Our team is experienced in creating trusts that meet your individual needs and goals.

Types

Alter Ego Trust

Charitable Trust

Child Trust

Disability Trust

Discretionary Trust

Income Trust

Joint Partner Trust

Life Interest Trust

Qualified Disability Trust (QDT)

Spousal Trust

Testamentary v inter vivos

We offer both testamentary and inter vivos trusts to our clients. Testamentary trusts are established in your will and only come into effect after you pass. Inter vivos trusts, on the other hand, are created while you are alive. The type of trust you choose will depend heavily on your goals and needs, which we will carefully consider with you during our consultation. Contact us today to learn more.

Alter Ego Trust

inter vivos

An Alter Ego Trust can be a valuable tool for Canadians aged 65 and older. By placing assets in the trust, they will not be included in your estate upon passing, which means probate tax won't apply. Additionally, an Alter Ego Trust offers several incapacity planning benefits. Contact us to learn more about how an Alter Ego Trust can benefit you.

Joint Partner Trust

inter vivos

A Joint Partner Trust is similar to an alter ego trust except that both the owner of the trust and their spouse, together, must be entitled to receive all of the income of the trust. This type of trust provides a peace mind that you and your partner will receive income from the trust as long as one of you is alive. Assets of a joint partner trust will not be taxed at the time that the transfer is made into the trust, but rather on the disposition on the passing of the second spouse.

Spousal Trust

Testamentary

A Spousal Trust is created within the Will for the benefit of the surviving spouse. This is an excellent tool if you wish for your estate to be held for the benefit of your spouse and then passed to your children upon your spouse's passing.

Charitable Trust

inter vivos

A charitable trust provides a gift to a charity of your choice on your passing. It may be cash, securities or property. A charitable trust results in an immediate tax receipt based on the fair market value of the gift. This is an irrevocable gift, meaning you cannot change the trust once created.

Disability Trust

Discretionary Trust

A discretionary disability trust, also known as a Henson trust, may be created to financially support a disabled person without affecting their government benefits. . AISH policy notes that the value of any assets (e.g. cash, investments, property, etc.) that are held in a trust in which an applicant, client or cohabiting partner is named as a beneficiary, is not included in a determination of assets.