Words Dominique Alford, Alford Walden Law
In British Columbia, estate planning is essential to ensure that your wishes are followed on your death and that your loved ones are cared for. Wills, estates, real estate, powers of attorney and probate are key elements of this process. Understanding these concepts helps protect your assets and avoid legal issues.
Wills and Estates
A will is a legal document that dictates how your assets should be distributed after death. Without one, your estate will be distributed according in accordance with the intestacy provisions of the Wills, Estates and Succession Act of BC, which may not align with your wishes.
Having a will gives you control over the distribution of your assets and can help avoid family disputes. Review your will every few years or sooner, if there has been a change in circumstances. Home will kits are available, but it is recommended that you have your will prepared by a qualified professional to ensure that it is legally valid.
Probate
Probate is the Court process that validates a will and gives an executor the legal authority to administer an estate. In some situations, probate may not be required depending on the nature of the deceased’s assets, how they are held and where they are. It is recommended that you consult with a lawyer to determine if probate will be required.
Real Estate
Real property (such as your home or vacation property) is often one of the highest valued assets of a person. When doing your estate planning, you should consider tax issues, such as property transfer tax and capital gains tax, on real property you own when you die to ensure that appropriate measures are in place.
Power of Attorney (POA)
An enduring POA appoints someone to step in and make financial and property decisions on your behalf if you are incapacitated. A POA ensures that a trusted individual can step in immediately. If you do not have an enduring POA and become incapacitated, someone will need to apply for a committeeship order from the Court, which is far more costly and time consuming than a POA.
Representation Agreement
A Representation Agreement appoints someone to make health and medical decisions on your behalf in the event you are unable to do so. It is important to appoint someone who you trust to carry out your wishes as opposed to what they might want for themselves if the situation were reversed.
Estate planning is essential for protecting your legacy and ensuring your loved ones are cared for in the event of death or incapacity. Proper planning can reduce emotional and financial burdens on your family and help prevent complications.
