Personal Estate Planning - Fees at Death and Power
of Attorney
Fees at Death - Here's a list of other fees that can deplete
your estate upon your death.
Power of Attorney - People often arrange their financial
affairs for retirement and death, but seldom consider administration
requirements should they become temporarily or permanently
incapacitated.
Fees at Death
In addition to income taxes at death, here are other fees
that can deplete the assets in your estate.
Probate Fees.
The value of your estate, which passes under your will,
is subject to provincial probate fees. The scale is as follows:
Value of Estate Probate
fees payable (Fees as of
February 1999)
Less than $25,000 - None
$25,000 - $50,000 - $6 per $1,000 of estate value
$50,000 + - $14 per $1,000 of estate value
Legal Fees
Legal Fees range from 1% to 2% depending upon the size of
the estate. Keep in mind, the more work, the higher the
fees.
Executor Fees
The executor, the person who carries out the instructions
given in your will, is entitled to be paid. A professional
executor is paid about 5% of the value of the estate under
administration. Additional fees can be charged against the
income of the estate if the estate must be held in trust
for any length of time.
Funeral Expenses
Today, funeral costs range between $7,500 and $20,000.
Power of Attorney - Putting the
Right Person in Charge
People often arrange their financial affairs for retirement
and death, but seldom consider administration requirements
should they become temporarily or permanently incapacitated.
By appointing an attorney, you allow someone you trust to
manage your property (e.g., home) and/or your personal care
(e.g., medical treatment) if you become unable to act, due
to illness or disability.
Without an attorney, if you become incompetent, the government
may appoint a public trustee to manage your financial and
personal affairs. Chances are this person may not be the
best person to assume the responsibility.
Although there are some provincial variations,
generally an attorney should:
- Act with honestly and integrity and in good faith, for
your benefit.
- Choose the least restrictive, least intrusive, and most
appropriate course of action available.
- Encourage you to participate, the best of your abilities,
in decisions about your property and personal care.
- Foster regular personal contact between you and those
family members/friends who support you.
- Consult from time to time with supportive family and friends,
and with those providing for your personal care.
- Follow the instructions and wishes you made when you are
capable.
When selecting an attorney for your property and/or
personal care, think about the person
- Does he/she know well enough to make property and/or
personal decisions on your behalf?
- Do you trust this person to accept the responsibility
and follow your instructions and wishes even if he/she
may disagree with what you want?
- Discuss your choice with your family, lawyer or physician.
- Be sure to review your choice annually.
Talk to the person
- Ask that person if he/she is willing
to be your attorney.
- Inform them of their responsibilities.
- Discuss your reasons for selecting an attorney.
- Discuss your instructions and how you want them carried
out.
Many provinces have made or are in the process of
making changes to regulations regarding an attorney. Your
lawyer or legal advisor can assist you in the preparation
of a power of attorney.
Click here for our list of
preferred professionals.
Don't leave your future to chance.
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