WILLS & ESTATE PLANNING (An Investment in Peace of Mind)

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1 WILLS & ESTATE PLANNING (An Investment in Peace of Mind) Sponsored By: Christian Stewardship Services Thursday February 2, 2012 Surrey, B.C. KEN VOLKENANT De Jager Volkenant & Company

2 De Jager Volkenant & Company Charity & Non-Profit Organization Law Wills and Estates Corporate and Commercial Law Real Estate Development Employment and Human Rights Law Litigation and Mediation # Avenue Surrey, British Columbia, V3R 8P8 Tel: (604) Fax: (604)

3 Why is it Estate Planning Important? Biblical Stewardship Principals Everything Belongs to God We are called to good stewards of the time talent and treasure we have received Part of good stewardship is estate and succession planning We are directed to provide for our own family members

4 Why is it Important To Have a Will? The Will is our final act of Stewardship Opportunity to recognize and acknowledge the ultimate ownership of God Determines the ultimate distribution of our accumulated material resources in a God-pleasing manner A lifetime of tithing often cannot equal what a donor can accomplish through a Will

5 Why is it Important To Have a Will? A will has been made for you if you have not made a Will Estate and Tax Planning Opportunities Income Tax Deemed disposition & capital gains RRSP/RRIF Probate Fees Property Transfer Tax Gifts to Charities can mitigate tax Resting in Peace Planning for Peace in the Family

6 What Exactly is my Estate? Definition What you own in your own name alone when you die (includes home, personal effects, money, investments) Assets that are not included in my estate Joint Tenancies Investments and Contracts with designated beneficiaries

7 Four Methods of Transferring Assets Assets Gift During Lifetime Living Trust Non-probatable RRSP s, Seg Funds, Insurance Proceeds Wills: Probatable Assets Outright Distribution Testamentary Trust

8 What Exactly is my Estate? A word on Joint Tenancies Benefits (avoid probate fees, efficiency) Potential Problems Unanticipated events Future dispositions Taxation Creditors No testamentary trusts)

9 Some Definitions Testator / Testatrix -Person who makes the will (soon to be called the Will Maker ) Personal Representative - Person who steps into the shoes of the deceased Executor(trix) named in the Will Administrator(trix) no Will Trustee holds funds and carries out specific directions

10 Some Definitions Probate - Court validation of Will and the appointment of the Personal Representative Common Form Solemn Form Estate Administration Personal Representative dealing with the Estate as directed in the Will and by law

11 Some Definitions Power of Attorney - An Instrument that appoints another person to conduct financial and property transactions on your behalf Enduring Power of Attorney Power of Attorney that continues in force even if you subsequently lose the mental capacity to manage your own affairs. Representation Agreement - An Instrument that appoints a representative to make personal and health care decisions on your behalf when you do not have the capacity or the ability to make or communicate those decisions yourself.

12 Some Definitions Living Will An Instrument that expresses how you wish to be treated, if you become incapacitated by illness, injury, or old age. Advanced Directives specific written directions regarding health care written Adult Guardianship statutory process where there are no valid written instruments

13 More Important Reasons For Having A Well Drafted Will Guardianship You choose your Personal Representative Simplify Estate Administration Control the distribution of the Estate Take advantage of Trusts Take advantage of Discretionary Trusts

14 General Considerations And Principles Who can make a Will? Certain Formalities Writing & Clarity Signing & Witnesses Knowledge of contents Freedom from duress, coercion or undue influence Understanding the extent and value of the Estate Takes effect on death

15 What If I Die Without A Will? Laws of Intestate Succession Apply Specific Provisions of Estate Administration Act Appointment of an Administrator Infants and Public Guardian and Trustee Bonding Entitlement to Estate Distribution of Estate

16 Do I Have To Use A Lawyer? No, but there are certain advantages Careful and clear language Avoid costly mistakes Valuable planning advice Ensure proper execution Good value Lawyer s have professional responsibilities Lawyers have liability insurance Using a notary public to prepare your Will

17 Common Problem Areas The Small Stuff can lead to Big Headaches Being too specific Out of Sequence Instructions Balancing control from the grave and Trustee discretion Certainty for charitable bequests Beneficiary as a witness Compensation to Personal Representative Execution, Alterations & Codicils

18 Home Made Wills and Will Kits Can you buy true Peace of Mind for $29.99? Following Instructions Simple Errors ruin Simple Wills The Key Witness is permanently unavailable for comment Pay me now or pay me later

19 Can I disinherit my relatives? Yes - but your spouse and children may have recourse through the Courts Challenge to validity of Will Formalities Capacity Undue influence Contract and Trust claims

20 Can I disinherit my relatives? Wills Variation Act Designed to protect spouses and children. Intended to be based upon need but cases vary Can not contract out of Act Explain your actions clearly Consider family Will planning exercise

21 THANK YOU FOR ATTENDING! Questions? Ken Volkenant