WILL AND CODICIL

Don't make an important decision about having a Will without at least speaking to a lawyer who has expertise in the Wills and Estates area. There are many things that you may not know about the law or the meaning of legal words such as "per stirpes" and "issue", so be careful if you think you can write your own Will. You can never be sure that the Will you have drafted for yourself does what you think it does. Common-law spouses do not inherit under intestate succession legislation in Alberta if you die without a Will.

If you don't have one, government legislation says how your property will be distributed. There are added delays and expense. Problems can arise even if you don't think there is enough money in your estate to cause concern. In Alberta, the first $40,000.00 goes to your spouse (not common-law spouse) then the remaining one-third to your spouse and remaining two thirds to your children.

ENDURING POWER OF ATTORNEY

This document allows for the appointment of a person to manage your financial affairs if you become unable to make decisions for yourself because of illness, age or accident. If you have an aging parent, you must discuss if they have an Enduring Power of Attorney - don't delay - too many times the issue is addressed when mom and dad are beyond the point of legally being able to sign a document. If you don't have one and you have a debilitating illness or accident, your spouse will not be able to deal with any property in your name alone. A court-appointed trustee or the Public Trustee will make decisions for you and your money.

PERSONAL DIRECTIVE

Like an Enduring Power of Attorney but appoints someone to make decisions about your personal matters such as medical decisions or where you will live. The person appointed is called your Agent. If you don't have one, no one can legally make these decisions for you except in certain circumstances. If you don't have one, a court-appointed guardian or the Public Guardian's office will make decisions for you about your medical treatment and your life.

PROBATE / PROBATE FEES

Probate is the court process an Executor goes through depending on the circumstances of an estate and assets in an estate. The court confirms the appointment of an Executor in a Will or appoints someone to deal with the estate if there is no Will. Some institutions will not allow you to deal with the deceased's assets without a Probate document. The Surrogate Court of Alberta charges a fee for putting a Will through this process. The fee ranges from $25.00 to $6,000.00 depending on the size of the estate.

PERSONAL REPRESENTATIVE / EXECUTOR

If you die without a Will, there is no one legally authorized to deal with any of your assets. The Executor or Personal Representative is the person who you appoint in your Will who is legally authorized to deal with your property after your death. An Executor receives his or her authority to act from the Will and has the power to act immediately on your death to deal with your assets.

TRUSTS, INTER VIVOS OR TESTAMENTARY

A trust is a means of holding property for another person. A trust can be created inside a Will, taking effect on your death (testamentary) or created during your lifetime (inter vivos). Tax advantages are the most common reason to create trusts but they can also be used to hold the property of a minor child or a disabled family member. If you don't have a trust in your Will and you leave inheritance for a minor child, the Public Trustee will step in and control these funds on behalf of the minor child. If you leave an inheritance to a mentally disabled family member without creating a trust, this person would require a court-appointed trustee to look after the funds on his or her behalf.

LIFE INSURANCE DESIGNATIONS

You should review all designations made and you should ensure that your overall estate plan and wishes are consistent with the designations, if any, you have made on life insurance policies. Life insurance, if properly used, is creditor proof. It is important to ensure that RRSP designations are also properly made and to understand the effect of the designations that you have made.

PLANNED GIVING

This is the process of identifying various ways you can give a charitable donation either in your Will or through other methods. It can be used to maximize your charitable giving power and result in tax savings to you now or to your estate, if properly done. Planned giving allows you to control who will receive the benefit of your money as opposed to the government deciding when it obtains your money through income taxes on your death and redistributes it to various organizations.