6 steps to safeguard your family's future

3. Powers of Attorney
Powers of attorney (POA) -- known as “mandate” in Quebec -- provide someone with the legal ability to make decisions for you. In Ontario (each province has slight differences), a POA covers three general areas: continuing property and financial decisions; temporary property and financial controls (valid for a set period; expires if you lose capacity); and personal care. You can cancel or change your POA any time. All POAs become active as soon as you sign them, unless you state otherwise, and end with your death.

The people you choose should be those you trust completely because they will instantly have authority to access your bank accounts and finances and, on the personal-care side, to make decisions for your well-being and quality of life. Ideally, POAs should live close by because they may need to look after your home, pay your bills or talk to your doctor.

TIP: Be sure to spell out what each person is responsible for and how potential disagreements will be resolved.

Why you need it: In the case of an emergency, such as an accident, your POA for personal care makes important decisions on your behalf, from treatment choices, such as no life support, to personal preferences, such as a private room. She would continue to do so if you lost capacity, such as in a coma. Without a POA for personal care, doctors usually get instructions from next of kin. For financial matters, you need the legal authority of a POA. The individual can then do your banking, sign important documents, make investments and even sell your home. Without one, no financial institution will release your funds, even if your unpaid bills are piling up. Someone would have to apply to the courts to be appointed your guardian and prove that you are incapable of managing your affairs.

Ka-Ching!: In Ontario, the attorney general's office provides free do-it-yourself forms with detailed explanations for completing them. You can also find forms at the library for free or at office supply stores and online at a cost of $20 to $80. Look for documents prepared by a legal professional and make sure they are suitable for your province. Lawyers charge $100 to $350 for POAs, although some include this service with the cost of preparing your will.

The talk: Make sure your designated POA accepts the responsibility. Clearly explain to your POA what's involved and expected. Even if the person is your spouse and you think he knows exactly what you'd want, go over personal-care choices and preferences. Explain your reasons to other family members if you're choosing one sibling or child over another.

When to update: If your health changes, you move out of province or change your mind about the named person or if she is unable or unwilling to do it.

4. Executor
An executor -- known as a “liquidator” in Quebec -- follows directions from your will and distributes your assets after paying your bills. Ideally this is someone you trust and who knows your personal situation; she may be a friend, family member or, sometimes preferable, an objective professional such as a trust company employee. You can name more than one person, but the individuals should live close to where your estate and property are located. Once an executor is appointed, it's difficult and costly to remove her, so consider the following before naming one.
• Does your estate involve eccentric or mundane duties?
• Will your executor have to run your business or find a home for your pets?
• Is she able to travel if you own a business or property elsewhere?
• Do you have straightforward gifts to be handed over or complicated trusts to manage?
• Conflicts of interest may disqualify family members, brokers, investment advisers and business partners.

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