What’s your 2019 New Year’s Resolution?

Most people’s resolutions would include losing weight, exercising regularly, eating healthier so on and so forth.  Have you considered getting your estate and personal planning documents in order as this year’s resolution?

Wills, Powers of Attorney and Representation Agreements are the most common and are probably one of the most important documents in your estate plan.  Accidents can happen without any forewarning.  In the direst circumstances, if you pass away without a will, basically you are leaving up to the law to determine how you want your estate to be distributed upon your death.  Your family or closest friends, while grieving for their recent loss, are also required to apply to the Court to be the administrator of your will.  In other instances, you suffer sever injury or illness and are not able to communicate with anyone, who’s going to handle your financial, legal, or personal care matters?  Your family, even your spouse, would not be legally to handle your matters. 

Since the owners of these documents requires to be mentally capable when these documents are being drafted for them, it is important to have these documents ready place way BEFORE you need them. 

Let’s go through the mental capacity checklist for drafting up a will and Power of Attorney:
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According to the Power of Attorney Act, the person must understand the nature and consequences of ALL of the following six factors:

1.  What you own and the value of each item;
2.  The obligations you owe to your dependants, such as a spouse and minor children;
3.  That the person you appoint will be able to deal with any financial and legal affairs on your behalf that you could do if capable, except make a Will for you. Their authority is also subject to any conditions or restrictions set out in the EPA;
4.  That, unless the person you appoint manages your affairs responsibly, the value of what you own may decrease;
5.  That the person you appoint might misuse their authority; and
6. That you may, if capable, revoke (cancel) the EPA.

As for wills, the MINIMUM mental capacity that the will-makers need to demonstrate are:

1. Understand that they’re making a will
2. Understand the effect of the will
3. Appreciate the amount of the property they’re distributing with the will
4. Understand who their next of kin are and appreciate that their will should, if possible,  provide for their spouse and children and not unfairly disentitle or exclude them.

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Don’t wait until it is too late to make a will or Power of Attorney.  Getting these documents ready is a huge relief for your family and loved ones during the difficult times.   ​