After a pleasant dinner date a few years ago, my wife and I picked up some ice cream treats and decided to park and eat them slowly, so we wouldn't have to share them with the kids. We had barely got started when a car drove by and hit a rock on the edge of its rear tire at just the right angle, launching it in to the back window of our Suburban. The $300 window smashed in to thousands of tiny shards of glass.
On an even more sober note, personal incapacitation is more than a mood wrecker. It may sneak up on us like an errant stone to the back of the car, or it may seep into our sentience with the subtlety of a latent cancer. I'm not sure which I would prefer. If I fall victim to an accident or to a sudden crippling disease, the descent is mercifully quick, but the wiggle room for last-minute preparation is nil. And who's going to know where I hid the Apple TV remote?
If, on the other hand, I slip into dementia slowly, the likelihood of that terrible in-and-out-of-clarity thing grows.
One day I might feel sharp, or for weeks on end, but if I am like so many others, the mind decay is likely to be bumpy - with good days and bad.
How do you get me to agree to let others make my decisions for me if I am somewhat clued-in about half of the time?
And worse, during one of my down days, my Don Cherry bobble head is likely to find its way to the garbage. Speaking of which... "Hey honey! Where is that thing?"
It's happening already.
Next she's going to pull down that lovely BRIC-share wallpaper in the den.
What about being appointed as attorney for someone else? Typically we might choose a peer of a similar vintage, which could be trouble if we both slip away into gazing at re-runs of Jeopardy at around the same time. The following list of duties might help us more soberly consider both the giving and the receiving of such an assignment.
It's an honour to be considered as an attorney and be trusted with the important duties therewith. The following list, while not exhaustive, confirms the weightiness of the task.
The extent to which these duties should be performed by the attorney will depend on the health and circumstances of the donor and, as such, not all may be applicable.
1. Locate and review the donor's will and document any specific instructions concerning property and bequests.
2. Notify all banks, brokers and financial institutions with whom the donor has business that you are acting as the donor's attorney; confirm whether the donor created any other Power of Attorney documents with them and redirect statements if necessary.
3. Cancel debit card(s).
4. Cancel credit card(s) and return cards to issuers.
5. Check Bank of Canada website for unclaimed balances in donor's name.
6. Locate and document all original investment certificates, stocks, bonds, property deeds, etc.
7. Notify appropriate institutions and redirect annuities, pensions and registered funds.
8. Review the suitability of the investment portfolio and any surplus cash, making any necessary and allowable adjustments to meet cash requirements.
9. Identify and document all other personal assets.
10. Notify Canada Revenue Agency, provide them with a copy of the Power of Attorney document and request a statement of account showing all outstanding taxes, refunds and installments paid to the current date
11. File any outstanding and ongoing tax returns and pay all income taxes owing.
12. Notify the appropriate authorities and redirect CPP/ QPP, OAS, Veteran's Pension Payments and GST/HST credits.
13. Notify insurance companies or other institutions regarding auto, home, disability or life insurance that you are acting as the donor's attorney and redirect statements if necessary.
14. Ensure adequate insurance for assets and upkeep of property.
15. Set up disability insurance payments, if required.
16. Cancel auto registration and insurance, if applicable, and collect any refunds.
17. Investigate and record all debts owed by the donor.
18. Arrange payment of debts with any surplus cash and obtain receipts.
19. Create a complete list of the donor's assets and liabilities as of the date of your first action.
20. Establish an ongoing list of acquisitions and dispositions made on the donor's behalf (i.e. money received, investments made, liabilities incurred or discharged).
21. Create a monthly budget consisting of all expected income and payments required to ensure the donor's immediate and ongoing financial needs can be met.
22. Document (including assets used in calculation) any compensation taken for your attorney duties.
23. Consult with the person acting as attorney for health care (person named in a "Representation Agreement") regarding health care, safety and shelter for the donor; obtain a written description of decisions made and make all necessary financial arrangements.
24. If there is no Representation Agreement for health care, obtain legal advice regarding the donor's current circumstances.
25. Notify personal attendants, housekeepers, gardeners and other staff of your role as attorney, as advise as required.
26. Initiate sale of assets if required.
27. Cancel memberships and other subscriptions if required.
Mark Ryan is an investment advisor with RBC Dominion Securities Inc. (Member-Canadian Investor Protection Fund), and these are his views, and not those of RBC Dominion Securities. This article is for information purposes only. Please consult with a professional advisor before taking any action based on information in this article. Mark can be reached at mark.ryan@rbc.com.
