08/15/2022
What is Estate & Personal Planning?
Estate Planning is the process of planning for the distribution of your estate in the event of your death. Most people are surprised to hear this, but nearly everyone has an estate. If you own a car, home, other real estate, bank accounts, investments, life insurance, furniture, and personal possessions, then you have an estate.
If Estate Planning is preparation for one’s death, then Personal Planning is preparation for one’s mental incapacitation.
Personal Planning involves deciding what will happen to your personal and health care needs if you are unable to express your decisions. Not only does the law empower you to choose a representative who will make these decisions for you and decide the scope of their power over you, but you are also able to present your physician or other health care provider with a written summary of the types of treatment you will accept, or refuse, should you become unable of expressing your decisions. This is done through a legal document known as an Advanced Care Directive.
Many people wrongfully assume Estate & Personal Planning are reserved for the elderly, the terminally ill, and/or the wealthy. This could not be further from the truth. This type of thinking can cause significant trouble for your family, friends, and other loved ones should you fall victim to an accident or illness that results in incapacitation or death.
Having a plan in place removes the burden on your loved ones and allows them to act with confidence in the knowledge that they are following your wishes.
In fact, if you don’t have a legally valid will, getting your loved ones their due becomes a difficult, lengthy, and expensive process. Legal documents such as Wills, Power of Attorney, Representation Agreements, and Advanced Care Directives, allow you to prevent this stress on your loved ones while simultaneously giving you the power to decide what happens to you and your property.
In British Columbia, if you don’t have a legally valid will in place at the time of your death, your estate is subject to provincial laws and will be divided according to what the government deems fit.
If you do not make a Representation Agreement and you become incapable of consent for medical treatment, the doctor and other health care providers will select someone to be your 'Temporary Substitute Decision Maker' (TSDM). The Health Care Consent Act lists who can be a TSDM.
If you do not have a legal power of attorney appointing someone to act for you in place when you become mentally incapable, then your loved ones will need to go to court to get “committeeship” (the legal authority to handle your affairs).
To avoid this, the bare minimum requirement is to have a legally valid will and either a Representative Agreement or an Enduring Power of Attorney. This doesn’t have to be an arduous procedure – in fact, this type of planning can be quite straightforward.
For more information on how to get started with Estate & Personal Planning, give us a call at Ajitpal Sangha Notary Public – we would love to help you!
Remember, you can’t take your estate with you when you pass away but, at the very least, you should be able to choose what happens with your life’s work.
