Why a simple will is not enough - an estate plan for today and tomorrow.

• Author: Koski, Annette

Years ago preparing our estate plan meant preparing a simple will. More often than not, it was limited to a couple of pages and prepared with minimal instructions to the lawyer drafting the document. No questions asked.

Today when we speak of an estate plan, we are not only concerned with how our affairs are going to be administered upon our death, but also during our lifetime. In 1991 in Alberta, legislation was introduced to allow us to plan for our own incapacity. The Powers of Attorney Act allows us to appoint an attorney to handle our property and financial affairs if we lose mental capacity. More recently in December of 1997, the Alberta Personal Directives Act was proclaimed which allows us to appoint an agent to attend to our personal and health care decisions when we are unable to do so ourselves. Prior to this legislation, the only alternative was to make a guardianship and trusteeship application to the court. Most provinces have similar legislation.

An estate plan should include a thorough review of your assets and liabilities with a view to your wishes for the future. What do you want to happen if you are incapacitated? How do you want your estate used--what are your priorities? What do you want to happen with your business if you are incapacitated? Where do you wish to reside if you are unable to stay in your home? Do you want to be kept on life support if the chance of recovery is improbable? Upon your death, how do you want your assets distributed? Are family members qualified to continue operating your business upon your death? How do you want your estate distributed if your beneficiaries predecease you? Only after questions such as these are answered is your lawyer able to customize your estate plan.

Customizing Enduring Powers of Attorney

Enduring powers of attorney should be tailor made to suit your circumstances. For example, if you want your attorney to be able to carry on your business, you must address this in your power of attorney. If you wish your attorney to continue with gifting to family members or charities as you have done until being incapacitated, you must provide the authority to do so. What if you want to stay in your own home even if it means exhausting your estate employing health care staff and substantially renovating your home? You must specifically authorize this as well.

If you wish to appoint only one of your children as your attorney, you might wish to consider including some form of reporting...