As baby boomers reach their 70s and 80s a significant wealth transfer will be taking place from them to their adult children. Only about half of Canadians have a Will and only about a third have a Power of Attorney and Representation Agreement. This is bound to result in a significant increase in estate litigation as families struggle to determine the wishes of their aging and dying parents.
An alternative to litigation is mediation which is being used more and more to resolve issues that arise between family members. Mediation can lower the costs for families and achieve a resolution in a timely and efficient manner. The main benefit of mediation however is that it is much less adversarial and can allow family members to create settlements they can accept, rather than having a resolution imposed by the court.
Another benefit is that mediation is a process families can return to more than once if other issues arise as a family member ages. For example, a mediator can help resolve developing issues relating to higher levels of care that may be required. Mediation can be a very effective tool when addressing family disputes.
FAQ
1) What happens to a person’s estate when they die without a will?
If a person dies without a will, their estate is considered intestate, and their assets are distributed in accordance with provincial law which may not be in line with the person’s wishes. In B.C. the applicable law is the Wills, Estates and Succession Act.
2) What happens if a person needs assistance managing their affairs and making health care decisions if there is no Power of Attorney (POA) or Representation Agreement (RA) in place?
Without a POA and RA, the individual may face several challenges if they become incapacitated or otherwise unable to handle their own affairs and a court application may be required to appoint a committee which can be an expensive and time-consuming process.
3) What is the best way to avoid conflicts between family members when it comes to decision-making?
To avoid complications, it’s highly recommended that individuals put a Power of Attorney and Representation Agreement in place while they are still mentally competent and able to make decisions.
For more information and to book a consultation regarding estate planning, please call us at 250-590-6226 or use our contact page.
Deborah A. Todd
