The COVID-19 pandemic has affected all aspects of our day-to-day lives. From living in various forms of lockdown, to concerns about our health, our finances and even our future, life has changed. For many of us, the coronavirus will lead us to re-evaluate our retirement and end-of-life plans, by either making changes to them or putting entirely new plans in place. And while that may be a challenging and emotionally draining proposition at the best of times, it may be especially true for seniors and those who are caring for aging parents.
“If no legal documents are in place, the level of frustration can increase and costs may rise, leading to the situation being way more stressful than it has to be,” says Graham Tonge, an Executive Trust Officer for TD Wealth. He outlines several steps that may be worth considering during these unprecedented times.
1. Review plans and documents
As we cope with the new COVID-19 reality, Tonge says now can be a good time to take stock and review plans and documents regarding your parents. These documents may include powers of attorney, wills and estate planning, taxes and investments. It can be important, says Tonge, to consider having a legally designated person who can step in and take the lead when a parent requires support. “If they don’t, now may be the time to have those discussions.
2. Think about powers of attorney
Although each province has its own laws and terms for these legal powers, a power of attorney (POA) document can give someone the right to make decisions on another person’s behalf. But there are different types of POAs, and Tonge says it’s important to understand what kind of care may be needed.
For example, a POA for Property gives the person named — perhaps a son or daughter, close friend or trust company — the ability to make decisions about a parent’s financial affairs. That could include managing investments, paying bills, estate planning, or even selling a property.
A POA for Personal Care gives that person the ability to make decisions involving healthcare, housing arrangements, personal care and end-of-life instructions, if the parent becomes mentally incapacitated. Both documents can be helpful, but you’ll need the right one in place, depending on a person’s needs. Ideally these documents can be completed while a parent is healthy so that their instructions are clear should they become incapacitated.
3. When to consider a Trust Officer
Not everyone is likely to have a spouse, children or even a friend in a position to look after their affairs when it’s required. Sometimes, the person that has been designated may also need support. In such situations, Tonge says you may consider turning to a trust company. A trust company is used as a financial agent on behalf of an individual and would have powers, for instance, to access accounts and make financial decisions. A private trust officer can provide financial care and may be appointed to help a senior sort out their finances and work on their behalf to manage financial affairs. And one doesn’t have to be incapacitated to use a trust officer. Tonge says some snowbirds use a representative to manage their finances, including to help ensure bills and taxes are paid on time.
4. Consider how a lockdown could impact scenarios
“If the person is capable, a lawyer may be approached to draft the POA documents,” says Tonge. But every situation is different, he says, and isolation due to the coronavirus could prevent a lawyer from accessing a home or care facility. In these cases, lawyers are having to come up with creative ways to help ensure legal needs can still be fulfilled.
“So, they may resort to taking instructions over the phone and commissioning the documents over a webcam,” Tonge says.
If the person is not mentally capable and there is not a POA in place, an application to the courts may be required to have a representative — perhaps a family member or a trust officer — appointed on their behalf. This is known as a “guardian of property,” or “guardian for personal care.” It’s similar to a POA, but the term guardian means they are court-appointed instead of being appointed by the person ahead of time. Making an application to the courts can be an expensive, lengthy and frustrating undertaking — and may be avoided by having a POA in place ahead of time.
“A trust officer can draft a management plan that is approved and revisited often,” says Tonge, adding that the plan would be designed to manage all aspects of the person’s finances.
Planning ahead, having documents completed, as well as having conversations with family and trusted advisors ahead of time can help to put a comprehensive plan in place, says Tonge. “So, when something happens everyone plays their part and knows their part.”
DERRICK MCELHERON
MONEYTALK LIFE
ILLUSTRATION
DANESH MOHIUDDIN
DISCLAIMER: The information contained herein has been provided by TD Wealth and is for information purposes only. The information has been drawn from sources believed to be reliable. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual's objectives and risk tolerance.
TD Wealth represents the products and services offered by TD Waterhouse Canada Inc., TD Waterhouse Private Investment Counsel Inc., TD Wealth Private Banking (offered by The Toronto-Dominion Bank) and TD Wealth Private Trust (offered by The Canada Trust Company).
All trademarks are the property of their respective owners.
® The TD logo and other trade-marks are the property of The Toronto-Dominion Bank.
MENTIONS JURIDIQUES : Les renseignements aux présentes ont été fournis par Gestion de patrimoine TD aux fins d’information seulement. Les renseignements proviennent de sources jugées fiables. Les graphiques et les tableaux sont utilisés à des fins d’illustration et ne reflètent pas des valeurs ou des rendements futurs. Ces renseignements ne fournissent pas de conseils financiers, juridiques, fiscaux ou de placement. Les stratégies fiscales, de placement ou de négociation devraient être étudiées en fonction des objectifs et de la tolérance au risque de chacun. Gestion de patrimoine TD représente les produits et services offerts par TD Waterhouse Canada Inc., Gestion privée TD Waterhouse Inc., Services bancaires privés, Gestion de patrimoine TD (offerts par La Banque Toronto-Dominion) et Services fiduciaires, Gestion de patrimoine TD (offerts par La Société Canada Trust). Toutes les marques de commerce appartiennent à leurs propriétaires respectifs.
ᴹᴰ Le logo TD et les autres marques de commerce sont la propriété de La Banque Toronto-Dominion.
免責聲明:本文內之陳述由道明財富 (TD Wealth) 提供,僅供資料說明之用。本文根據相信為可靠的資料匯編而成。圖表僅供解說之用,並不反映任何投資的未來 價值或未來回報。本文資料並不旨在提供財務、法律、稅務或投資建議,衡量個別投資、交易或稅務策略時,應考慮個別人士的目標和風險承受能力。道明財富、道明銀行 (The Toronto-Dominion Bank) 與其聯屬及相關實體對任何資料錯漏或導致的損失或傷害概不負責。道明財富是代表由道明宏達理財加拿大有限公司 (TD Waterhouse Canada Inc.)、道明宏達理財私人全權託管投資有限公司 (TD Waterhouse Private Investment Counsel Inc.) 以及透過道明銀行提供之道明財富 私人銀行 (TD Wealth Private Banking) 和透過加拿大信託公司 (The Canada Trust Company) 提供之道明財富私人信託 (TD Wealth Private Trust) 所提供的 產品與服務。TD Waterhouse Canada Inc. - Member of the Canadian Investor Protection Fund。
所有商標分別為其擁有機構之產權。
® 道明 (TD) 標誌和其他商標是道明銀行的產權。
此中文譯本僅供參考之用,一切以英文原文為準。
免责声明:本文内之陈述由道明财富 (TD Wealth) 提供,仅供资料说明之用。本文根据相信为可靠的资料汇编而成。图表仅供解说之用,并不反映任何投资的未来 价值或未来回报。本文资料并不旨在提供财务、法律、税务或投资建议,衡量个别投资、交易或税务策略时,应考虑个别人士的目标和风险承受能力。道明财富、道明 银行 (The Toronto-Dominion Bank) 与其联属机构及相关实体对本文中任何资料错漏或导致的损失或伤害概不负责。道明财富是代表由道明宏达理财加拿大有限公司 (TD Waterhouse Canada Inc.)、道明宏达理财私人全权托管投资有限公司 (TD Waterhouse Private Investment Counsel Inc.)、以及透过道明银行提供之道明财富私人 银行 (TD Wealth Private Banking) 和透过加拿大信托公司 (The Canada Trust Company) 提供之道明财富私人信托 (TD Wealth Private Trust) 所提供的产品与 服务。TD Waterhouse Canada Inc. — Member of the Canadian Investor Protection Fund。
所有商标分别为其拥有机构之产权。
® 道明 (TD) 标志和其他商标是道明银行的产权。
此中文译本仅供参考之用,一切以英文原文为准。