Trusts

When discussing Trusts, here are some terms you may come across:

• Settlor means the person who establishes the trust
• Trustee means the person chosen by the Settlor to manage the assets of trust
• Beneficiary means the person for whose benefit trust assets are held

There are also numerous ways to classify trusts, including by how the trust was created, the object of the trust, whether the trust was created during the settlor’s life or upon the death of the settler, or whether the trust is for a charitable or non-charitable purpose. One of the most common ways to classify trusts is by the Trustee’s discretion.

• In a non-discretionary trust, the Trustee has no discretion with respect to who is to receive the benefits under the trust and how much they are to receive. For example, the Settlor has created a trust that named specific beneficiaries and the proportions or specific amounts that each beneficiary will receive.
• In a discretionary trust, the Trustee is given discretion as to who among a group of people is to receive benefits from the trust or discretion as to the amounts each beneficiary is to receive or both. For example, many parents will specify that the residue of their estate will be held in trust for their children until a specified age but will leave the discretion to the Trustee as to the amounts spent on basic needs, education, for purchase of a home or property, or other expenditure for their benefit.

To find out more about how trusts can fit into your estate plan, call Doug or Elizabeth at (604) 980-8571 to set up an appointment.

When Should I Get a Power of Attorney?

A Power of Attorney is a powerful legal document that allows you to pick one or a team of people to assist you with your legal affairs in the event that you are unable to attend to your own. You may not be able to manage your legal affairs because of incapacity, but also because you are absent from the city or country for a period of time or because you are physically unable to do so (like breaking both of your wrists in a rollerblading accident). You can only sign a Power of Attorney if you meet the legal, not medical, test for capacity. As I would imagine that none of you are able to schedule even the day or the week that you may lose your capacity, a Power of Attorney is an important part planning at any and all stages of your life.

Without a Power of Attorney, which is effective only while you are alive, you are ensuring that a trusted person or institution in your life has the authority to manage your affairs – pay bills, obtain information, access funds for care, sign on your behalf and all the legal decisions involved in your daily life.

A Power of Attorney is an important and powerful document that is needed before it is needed. Call us at (604) 980-8571 and ask for Doug Crawford or Elizabeth Mah to set up an appointment to have your questions answered or to execute a Power of Attorney.

PS. This blog is NOT meant to frighten – but to enlighten.