Power of Attorney for Personal Care
Over one third of Canadians fail to consider potential problems which would require a Power of Attorney or Power of Attorney for Personal Care
When Canadians are no longer able to make decisions about their personal care or medical treatments, a written document “Power of Attorney for Personal Care” explains how they would like to be medically treated to ensure their wishes.
A Power of Attorney would designate either a trusted individual or a trust company to manage their financial affairs should they be unable to do so. Without a Power of Attorney, an application would have to be made to the court requesting permission to manage their affairs.
The Tax Man Cometh
Presently Canada has no true . However, one’s estate could be subject to three potential taxes or pseudo-taxes:
Income Tax Due to Deemed Disposition
A final tax return needs to be filed by the estate’s executor and must include all income earned, and any net capital gain recognized under the deemed disposition rules up to the date of death.
Provincial Probate Taxes
Upon death, the estate’s executor is generally required to file for probate with the provincial court and submit an account of the deceased’s assets as well as the original Will.
The estate’s executor is required to pay any probate tax owing and is based on the total value of all assets that pass through the Will.
Probate taxes may be reduced by the naming of beneficiaries, utilizing Joint Tenancy with the Right of Survivorship agreements and the use of living trusts.