Hot summer days bring back memories of the sun and the family swimming at the beach.

And when your family packs up for a summer trip, their safety is always your concern.

You can protect your family with this quick estate planning review in a matter of minutes.

I call it 3-D Estate Planning Review. It goes like this:

Before you fly away or finish packing the car, take a moment to answer these 3 questions.

1. If one of us does not come back, what happens to our family?
2. Who will be in charge?
3. Where will they find important papers?

As a parent, it’s your job to protect your minor children.

You need a will to name guardians for them and provide for their needs.

Sure, you have done that but before you leave for summer vacation, run through this 3-D Estate Planning Review.

The First D is for “Deeds to Property”

• Are your ownership deeds in order showing the proper owners?
• Who will inherit your home, vacation or business properties?
• Can anyone find the deeds, mortgage and insurance papers?

The Second D is for “Documents”

• Where are your original signed wills and powers of attorney?
• Does your executor/attorney know where to find them?
• Do executors/attorneys know a good estate lawyer in an emergency?
• Should you revise these documents before your holiday?

The Third D is for “Designations”

• Do you have designated beneficiaries on your pension, life insurance, RSPs, RIFs, and TFSAs?
• Have you considered all tax rollovers to spouses and charities?
• Do you have enough life insurance designated to cover your family?

What if you are single, or you and your spouse do not return from vacation?

Use the same 3-D approach. Whatever you do, get professional advice.

You can often get reassurance that everything is in order by calling the lawyer who prepared your estate plan and will.

What’s that you say?  You created your will online without a lawyer?

Uh-oh. You have no one to turn to for advice and reassurance.

It’s not too late to get things done.

Contact me for an appointment or call 416.769.9800.

Tell me when you have to leave for holidays. I can help put an estate plan in place.

You can have wills and powers of attorney prepared by a Certified Specialist in Estates and Trusts law.

Stop losing sleep. Contact my office today for an appointment, and see my schedule of services and fees.

I just finished drafting a new report called, Protect Your Family Today – Your Easy Estate Planning Recipe. It is an easy estate planning guide.

In it, I explain how and why you are responsible for protecting your family. I’ve made it easy with 3 steps:

• Step 1 – Learn what to do with your property
• Step 2 – Learn who you choose to take care of things
• Step 3 – Learn what to do when something happens

It will help you get started with your own estate plan.

There are too many risks in do-it-yourself estate planning. So, I am not suggesting that you do this by yourself.

You need professional advice.

I’ve written a jargon-free book to help you understand estate planning.

It’s called Estate to the Heart: How to Plan Wills and Estates for Your Loved Ones.

You’ll find my new report, Protect Your Family Today – Your Easy Estate Planning Recipe, will help you take action. You can get your free copy by sending an e-mail or calling to request it by phone at 416.769.9800.

You can read a sample chapter and buy Estate to the Heart: How to Plan Wills and Estates for Your Loved Ones at EstateTherapy.com.

What if a friend or relative is in trouble? They telephone you asking for help to hire a lawyer. What happens if you call a lawyer for them?

Well, this complicates things when you act as a go-between. You may not understand why until you finish reading this.

Let me give you 3 examples to explain. You can answer “Yes” or “No” to test yourself.

Do you think a lawyer should help if you called one saying:

1. I need a power of attorney for my mother. Can you prepare one for me?

2.  My father is in a nursing home. I was told you could transfer his property to me to avoid probate.

3. My sister wants me to prepare a will leaving me all her property.

The Correct Answer

“No” is the answer in all cases. A lawyer should not act on instructions from you on behalf of a friend or relative.

Lawyers must always comply with their professional obligations. This means they must meet with their client, confirm their identity and instructions.

Usually, callers would be screened to determine if there were any potential ethical concerns.

You would be asked questions such as:

• does your relative know that you are calling?
• does your relative have a power of attorney naming you as his attorney?

A lawyer may be able to represent your parent, but not you as well.  You would also be screened for potential existing or future conflicts of interest.

In such matters, it is better for your relative to call a lawyer directly.

New Power of Attorney Guidelines are Designed to Prevent Fraud

When was the last time you looked at your power of attorney documents?  Can you find the original signed documents?  These legal documents give the person you designate as your attorney the power to handle your property.

But beware of these new rules if you own real estate in Ontario!

It’s important for you to have valid powers of attorney documents for your protection.  Otherwise your family may just be out of luck.  Don’t force them to face expensive alternatives including going to court.

New as of February 2009

Effective February 2009, the Law Society of Upper Canada has issued new guidelines to Ontario lawyers.  These affect the use of powers of attorney (POA) in real estate transactions.

The new rules require lawyers to follow due diligence standards before a POA can be used to sell, transfer or mortgage your property.

POAs are designed to protect you from unnecessary legal expense.

What if, for any reason, you are unable to sign documents on your own behalf and don’t have a valid POA?  Your family may be forced to obtain court orders to deal with your property.

Married Spouses are not automatically authorized

Don’t think that because you are married your spouse can sign your name to legal documents.

You must authorize someone by signing a valid written document designating them as your attorney or substitute decision-maker.  Once you need the POA, it is most likely too late to get one signed.

The Law has Changed

POAs for property, if they were signed before 1995, often required doctors to certify you as no longer competent to manage your own finances.  This would be the trigger that made them operational.

Under the Substitute Decisions Act, 1992 formal assessments of competency are often required.  You cannot expect your family doctor to provide this certificate.

Dangers of Doing-it-Yourself (DIY)

For years, getting a POA document was easy.

Ontario law still does not mandate or require you to use a particular form.  Internet websites allow you to download POA’s in various languages free of charge.

But what seemed once to have been acceptable and standard practice no longer is risk-free.

Why are all do-it-yourself documents dangerous?

How can you tell if you have completed them properly?  DIY documents are worthless if they do not comply with the law.

An Example, Please!

Jonathan brings a homemade power of attorney into a lawyer’s office.

Jonathan says, “My grandfather is now living in a nursing home after his stroke.  His house is empty and I need to sell it to pay for his care.”

What Jonathan doesn’t know is that the power of attorney document was signed in 1995 by his grandfather.  The lawyer must review the document and give a legal opinion that the POA allows Jonathan to do what he wants.

Jonathan needs a legal opinion from his lawyer that the POA meets the current guidelines for real estate transactions.

If the POA does not comply, Jonathan must wait until he is appointed as his grandfather’s guardian of property.  This can take months and cost upwards of $10,000 or more.

New Standards

The POA now has to be registered on the title to the grandfather’s property to be used.

Lawyers now discourage the use powers of attorney for real estate transactions.

Jonathan’s lawyer must confirm that:

• Jonathan is not exceeding his authority under the POA
• there are no restrictions that prevent him from selling grandfather’s home
• the POA was legally authorized and properly witnessed
• the document has not been revoked
• Jonathan is the person he claims to be with proper identification
• where suspicious circumstances exist lawyers are required to investigate further
• what evidence the witness to the POA may have

In Conclusion:

1. Ontario lawyers are now more vigilant because of the frequent use of phony POA’s in real estate fraud.

2. Lawyers now discourage using POA’s for real estate deals because they can be forged.

3. If you have real estate, ensure your powers of attorney have been professionally reviewed.

Check and update your POAs today.  Make sure you meet the new guidelines.

For more information, read the free MrWills.com Guide to… Powers of Attorney: 10 Essentials You Need to Know.

2009 © MrWills.com. All rights reserved. You may reprint this article provided you credit the author and this website as its source.

This information is not financial, legal, tax advice or a substitute for professional advice. Always consult with a professional before taking any action.

Ed Olkovich B.A. LL.B C.S. TEP is a Toronto lawyer, certified specialist in Estates and Trusts Law. Ed is frequently quoted as one of Canada’s leading estate experts. He is the author of several books including Executor Kung Fu and Estate to the Heart, both available at EstateTherapy.com or by calling 416.769.9800.

Contact Ed Olkovich’s office here or call 416-769-9800 to arrange a consultation today.