According to a study by the Public Health Agency of Canada, 35 per cent of Canadians with a neurological condition such as Alzheimer's disease reported having experienced a financial crisis in the past 12 months.
If you have an adult child with an incapacitating disability, then you undoubtedly want to plan your estate so that it provides for your child's needs when you are unable to do so yourself. There are numerous ways to do this, and it is important to choose the strategy that best meets your family's needs.
The possibility of not being able to make your own decisions may not be a subject you often consider, but anticipating incapacity is an essential part of estate planning. Canadians can most easily address incapacity issues with two important documents: power of attorney for personal care and power of attorney for property.
You're not alone if the prospect of talking with your heirs about estate planning makes you uncomfortable. In fact, earlier this year a poll by the Canadian Imperial Bank of Commerce showed that nearly 50 per cent of Canadians have not broached the topic of inheritance with their heirs, yet more than half of Canadians expect to leave assets to heirs upon death.
Many Canadians plan for the onset of mental incapacity by appointing an Attorney for Personal Care and an Attorney for Property. These powers of attorney allow someone other than the incapable individual to make decisions regarding his or her finances, health and living arrangements.
Anticipating mental incapacity is an important but often overlooked aspect of estate planning. As we discussed in a recent post, Canadians can plan for mental incapacity by creating powers of attorney for property and personal care.