A Living Trust holds the legal title to the property that is legally yours. This Living Trust helps keep it out of your “estate” that automatically goes on probate after your death. The Living Trusts have a plan of distribution that in many cases is implemented with ease and attracts lower cost in comparison to a probated estate. If you avoid the probate, your heirs will be spared the expenses open to the public probate process that may be quite cumbersome. A Living Trust also enables you to have flexibility in providing long term tax benefits for your family or beneficiaries. The assets under the Living Trust are then distributed evenly without court intervention and management. There could be multiple trusts after your death that help support your spouse and also provide for your kids and local charities. These trusts can also provide financial support to many generations in a family.
A Durable Power of Attorney on the other hand is someone that can act on your behalf and take decisions in respect of your personal, financial and business affairs in case you are incapacitated. It is also known as the “Springing” Power of Attorney as this individual springs into action only when you become incapable of managing your own affairs. You can fit a document with special powers that enable you to transfer powers to the “Attorney in fact”. These powers include signing of cheques, paying bills, opening and closing financial accounts along with handling tax matters and selling property on your behalf. A Durable Power of Attorney also can manage your retirement plans and provide continuity in the management of your affairs when you are not in a position to manage them due to failing health or a certain injury caused by or due to an accident.
A Durable Power of Attorney is a critical piece of an estate plan for wealthy clients with life insurance policies. This legal document enables the power holder or the attorney to carry out specific legal and financial transactions for the physically unfit person. It is crucial that a wealthy individual with an estate plan follows up with a planned program that carries on till the death of the owner. The insured person needs to gift money to the life insurance company, so that the trustee can pay policy premiums every year till death. The Durable Power of Attorney document enables the family members of the old individual to help carry out several functions. These are:
- The power to acquire life insurance on the lives of other family members as the granter of the Durable power in whom he or she has an insurable interest
- The power to retain investments and change and make alterations in the investments as owned by the estate owner
- The power to invest in variable and fixed annual investments such as bonds, stocks and mutual funds. The power holder is the sole person who decides what he wants to invest in terms of money market accounts or cash.
- The Durable Power of Attorney also allows the person to exchange, sell and convey a property owned by the grantor of this power.
- With the Durable Power of Attorney, you can also compromise and settle a legal dispute against the grantor or even for him.
- You can also have the power to gift and make gratuitous transfers to a spouse, descendants and other charitable institutions.
In order to execute a Durable Power of Attorney, you need to have the right mental capacity to execute and formalize the document in the first place. This mental capacity is the same that is required when executing a will. In case you would like to know more about a Durable Power of Attorney Document, please visit us at hwww.notarizers.ca or call us at 416-782-5926.
When the person is capable and doing well he has the right to assign a family member or a close friend as one of their powers of attorney. This is done, so that if due to any reason the person becomes incapable, the granted attorney can act on his behalf.
It is a necessity that the attorney works in the best interest of the incapable. Attorneys are trustworthy and are regarded as fiduciaries by the court of law. It is very difficult for the court to remove the power of attorney as it interferes with the choice of the person when fully capable.
Out of some reason and due to uncertainties, a family member or a close friend can apply to the court for being appointed as the power of attorney. As per the laws, the action taken to remove an assigned power of attorney depends on these two factors:
- If there is a strong and compelling evidence of the misconduct or negligence on the part of the attorney.
- If the best interests of the incapable person is not being served by the attorney.
When Can The Court Remove The Attorney?
1. If the above mentioned factors are not being met by the assigned power of attorney, a family member or the person wanting to take the responsibility can appeal to the court to remove the attorney from action.
2. Sometimes it is observed that a party becomes very hasty in submitting the removal application. This procedure is quite tasking because challenging an attorney for property without full evidence might not turn out to be in the favor of the applicant.
3.The procedure turns out to be quite expensive and might turn out to become a big fight.
4. In order to avoid this situation from occurring, it is advisable that whenever you are granting the right of your property to someone else, check and verify if he is really capable as well as trustworthy in handling the duties and responsibilities.
Dying without a Will as per the law means that you have died “intestate”. Under this circumstance, the court acts as an estate administrator to first settle any dues remaining of the deceased and then dividing the remaining assets equally among your family members.
Property Division after You Die Without A Will
- If you are married but have no children, then your property is inherited by your spouse.
- In case you have a spouse as well as children, then according to the law, your spouse is entitled to the maximum share of your assets and the rest gets divided among your children.
- If you are not married, then your assets get inherited by your parents.
- If you have children, but no spouse, then your asset is equally divided among them.
- If there is no living kin in your family, then all the assets go to the government for them to use it for the benefit of the country.
There are a few problems that might arise if you die without a will.
Problems That Can Arise
- If you die without a Will, then it creates a huge problem for your family, as your assets are divided as per the law that might not be what you had expected.
- Time, as well as the expenses involved in solving the matter, may harass your family members.
- The court appoints a representative to take care of your property. For your family member to become that personal representative, he must acquire the Certificate of Appointment of Estate Trustees without a Will.
Thus, it can be concluded that making a Will of your estate is a necessity so that your loved ones are not kept away from their right to own your property and assets.
If due to any circumstances you have to let your child travel alone or with another person or just one of the parents, then writing a consent letter will be of great help. Here, are a few tips that will help you to write the child travel consent letter.
1. Be Clear About The Reason Of The Letter
A consent letter does not necessarily have to be long. But, it must contain information about who is writing the consent to whom and regarding what issue. Use a simple and direct language, in order not to complicate the situation.
2. Include Specific Details of The Child
When writing the consent letter for your child to travel alone or with one of the parent, it needs to feature all the specific details of your child that includes the full name, date of birth, place of birth, passport number, date of issue of passport and the place of issue of the passport. If your child is traveling completely alone, then consent from both the parents is required.
3. Give The Details Of The Person Accompanying Your Child
The letter should also contain the details of the person accompanying the child. This includes the full name of the assigned person and important passport details.
4. State The Name Of The Person Your Child Will Be Living With
It is very important for the government to assure that the child will be staying in the foreign country with someone authorized. This requires you to provide the full name, address, phone number and fax number of that person.
5. Get The Letter Stamped By A Notary
To have an official stamp or seal on the consent letter makes it look professional and verifies its accuracy. This removes the chances of any doubt to occur during the travel.These tips will certainly help you to write the consent letter for your child so that your child can travel without getting any problems with the officials in the airport.
If you have been appointed as the power of attorney for the person who is now incapable of taking care of his property and personal assets, then you should abide by the rules and take up your duties. Here, are the few things that you need to keep in mind when acting under as a power of attorney for property.
1. The Scope OF The Attorneyship
When a granter provides the attorney with full responsibilities of his property and personal assets, this means that the attorney gets the power of taking any decision regarding the property as well as can be a part of the financial decision making. However, taking a decision on the Will of the granter is not allowed
2. Duties Involved
An attorney is known to be a fiduciary to the granter; this requires the attorney to work in the good faith of the person who has given him the rights. The decisions made should be considered to be of the best interests of the incapable. He needs to be diligent with the duty and think of the responsibilities as one of his.
It is important to know that being an attorney of a property entitles you to a reasonable compensation that is fixed by a Regulation to the Substitute Decisions Act. A compensated attorney is considered to be of a higher level than a non-compensated attorney.
4. Be Effective
Before taking your responsibilities to act as an attorney to the property of the incapable person, he/she should carefully read the Power Of Attorney. If unclear of any point stated in it, consulting the lawyer will be a great idea. Thus, in order to act effective, it is important to note that the granter has not assigned any other attorney to fulfill his responsibilities.
5. Resignation Option
The task of an attorney is not that simple. Sometimes, a person might not want to act as an attorney, so in this case, obtaining legal assistance to resign from this position is recommended. Following these tips, an attorney can carry out his duties and responsibilities on behalf of the granter.
If your child’s passport is about to expire, then getting it renewed as soon as possible is highly recommended. Here, are the 5 most important things that you should know when re-issuing your child’s passport
The usual time of processing of the renewal of your child’s passport is around 20 working days, starting from the day of assessment of the fully completed form.
Validity Of The Passport
The maximum validity time for a child’s Canadian passport is 5 years.
Best Time For Submitting The Application Form
There are three cases under which you can submit an application for the renewal of your child’s passport.
- If the current passport has expired or is about to expire in about a year.
- If all the pages in the passport are full.
- If you want to replace the current passport with the new e-passport.
- Original copy of the birth certificate with the details of the parents included.
- Proof of being a Canadian citizen.
- The most recent passport that have expired.
- Two copies of passport photos that requires to be signed by the guarantor.
- Original and photocopies of both the parents government issued ID card.
- If your child is adopted, then all the documents that refers to the custody, mobility or access to the child should be submitted.
- Receipt of the non refundable processing fee.
- A copy of the filled application form.
Ways Of Submitting The Application
You can submit the form either by posting it, by dropping the mail at the passport office, or by applying in person by walking into the passport office closest to you. Abiding by these steps will allow you to complete the reapplication of your child’s Canadian passport, and give your child the right to be able to travel around.