Looking After those you Leave Behind Theresa Arsenault Q.C. is a senior partner at Pushor Mitchell and is highly regarded for her expertise in estates and estate planning. She also has a leading business and real estate development law practice. Theresa is extremely active in the community and in addition to holding several board positions with the United Way, KGH Foundation, the B.C. Cancer Agency and the Okanagan University College, has served as a Governor and Chair of UBC, and is currently Co-Chair of UBCO’s External Advisory Committee.
Estate planning is a scary thought for some people, but it is really just doing what we women do all day long: looking after the people we care about.
While you are alive, but have lost your mental capacity by stroke, accident or dementia, looking after others may be making sure someone can pay your family’s bills and look after your investments and real estate. This is where having a power of attorney is vital. After you are gone, helping your family with their needs requires a will or a trust, or perhaps both. You want to appoint a guardian in your will to look after your children until they are 19. You want to provide for children so that their needs are looked after, but in such a way that they have an incentive to get post secondary education, and in such a way that they do not become permanent trust fund babies. You want your trustee to have the discretion to advance the appropriate amounts at the appropriate times for your child’s needs. In the case of a child with a disability, you want to create a discretionary trust that will allow the child to access the government benefits and programs that are available, while having extra resources for the care and quality of life you want for your child. You might want to create a Registered Disability Savings Plan and get the government top up available.
If you are over 65, you can create an alter ego or joint partner trust to retain control of your assets during your lifetime and have your assets pass to the appropriate people on your death, without the necessity of going through the probate process. If you are the owner of a business, you may be able to use a discretionary family trust to have the growth in value of your business pass to your spouse and children at appropriate times and avoid probate. If you do not have a business, you can create a trust in your will to provide for your spouse during his lifetime and have the estate pass to your children when your spouse is gone. You will want any of the above ways of looking after your family or chosen charities to happen in the most tax effective way. Having assets pass outside your estate by naming beneficiaries on your RRSP, RRIF, TFSA and life insurance can be a great probate free planning strategy, in the right circumstances. Your estate planning lawyer can give you the advice you need to look after your loved ones in the smartest way possible. This is provided as information ONLY; it should NOT be construed as legal advice. You should consult with a lawyer to provide you with specific advice for your own situation. For more information on estate planning and to discuss your specific circumstances, please contact Theresa Arsenault at 250-869-1110 or email Arsenault@pushormitchell.com.
Your children may be grown and self-supporting, and in no need of your help, but you want to make provision for your grandchildren to ensure that they can get a good post-secondary education, have money for a down payment for a house, or just have a gift by which to remember grandma. Outright gifts in a will or trust or a discretionary trust can be used depending on your wishes. You may have a second or third spouse and children from a previous relationship and you want to provide for everyone as appropriate. Trusts are a useful tool for this.
pushormitchell.com phone 250.762.2108 301 - 1665 Ellis Street Kelowna, BC
OKANAGAN WOMAN SUMMER | 2019 39