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By W. Hubert Morris, L.L.B. The accident was unavoidable. You are hospitalized and slip into a deep coma. The prognosis is bleak. Your family doctor has advised that you are not mentally or physically capable of managing your affairs. As a result of serious head injuries, you are declared incompetent. The stage has been set for the Public Trustee to be appointed to administer your assets or, alternativeâ€" ly, for a costly court procedure to have a third party appointed trustee to direct and manage your financial affairs while you are incapacitated. Generally a person is said to lack legal capacity if she or he does not understand or appreciate the nature or consequences of her or his actions. A person who lacks legal capacity is, by law, not able to enter.into any agreeâ€" ment or contract. A 10â€"yearâ€"old child, Powers of Attorney often overlooked in estate planning Formerly, the charges would have totalled $1,000. Thus, your estate would now pay $1,500 (2,500 minus $1,000) more in fees than it would have a year ago. The higher the value of the assets subject to probate, the more dramatic the difâ€" ference between the old and new rates. There are a number of simple planning steps you can take to reduce the value of your estate for probate. If you designate a beneficiary in your life insurance policies, RRSPs (registered retirement savings plans), and pension plans, proceeds can pass directly to that beneficiary without going through probate. As well, property owned as joint tenâ€" ants can be transferred directly to the person with whom you share ownership. Since a home may be the largest asset in your estate, avoiding probate fees on its transfer could make quite a difference to your heirs. =« Cynthia Santin is a tax manâ€" ager with Ernst Young. (Continued from page 16) assets. Thus, if your estate has $200,000 of assets subject to proâ€" bate (quite possible if you own a home), probate fees on the first $50,000 would amount to $250. Charges on the remaining $150,000 would equal $2,250, amounting to total probate fees of $2,500 ($250 plus $2,250). A word of caution â€" probate should be just one factor in your overall estate planning. Other tax issues and family law consideraâ€" tions must also be taken into account. You also might consider transferring some of your assets to your heirs before your death. Talk to your professional advisor. Simple StepS _ a A C©UiDe to Gstare PplannNinee rUnNeEraL for example, could not, by this definiâ€" tion, enter into a legally binding agreement. Although a Last Will â€"and Testament remains the most essential component of any estate plan, a Will is operative only when someone dies. A Will does not pass on rights to any assets while an individual is still alive. A Power of Attorney can be effective from the moment it is signed but it is most often used only when one is unable to act for oneself, whether due to an accident, illness or temporary absence while travelling. Similarly, a car accident, a stroke, Alzheimer‘s disease or even artherosclerosis, may render one legally incapacitated. Incredible hardâ€" ships may arise in consequence: money cannot be taken out of a bank account, cheques cannot be written and your home cannot be remortâ€" gaged unless someone has been given the authority to enter agreements on your behalf while you are legally incapable. A relatively simple, inexpensive alternative to either the court applicaâ€" tion or the Public Trustee, one that is often overlooked by estate planners, is the Power of Attorney. This document authorizes a third party to act on your behalf â€" to sign contracts, write cheques, do virtually anything you would do yourself. Regardless of what form your perâ€" sonal assets take, ask yourself, "What happens if I become legally incapaciâ€" tated?" For many, the family home still represents their largest single Anne Knisley e Wayne Ross e Carolyn Savage Sometimes the little things make a big difference. We encourage our families to share their ideas with us on personal touches that might have significance for mos asset. Many couples are planning to make use of reverse mortgages to proâ€" vide funds for other investments or retirement projects. The ability to access accumulated equity in the matâ€" rimonial home has opened many new doors. However, in Ontario, the law specifies that in order to mortgage or sell the matrimonial home, the signaâ€" tures of both spouses are required. If one spouse is incapacitated, the other cannot deal with the property. Unnecessary cost, delay and aggravation might easily be avoided by a Power of Attorney. Most married couples appoint one another under a Power of Attorney that would take over in case of illness or accident resulting in incapacity. It‘s a good idea to sign such a document now, before anything happens. The key is to name someone you trust â€" a spouse, a friend, a relative or someone in whose judgment you have confiâ€" dence. â€" A Power of Attorney can be speâ€" cific or general in nature. For examâ€" ple, you might grant authority to your spouse to deal with the matrimonial home only. Bank, stocks and bonds would not be accessible under such a specific Power of Attorney. A general one, on the other hand, would have no restrictions whatever. Proposed amendments to the law regarding Powers of Attorney may make it wise to act quickly. The Substitute Decisions Act and The Consent and Capacity Amendment Act received Royal Assent in December, 1992 and will probably be in full force sometime in 1994. Under this new legislation, a person signing a Power of Attorney will require two witnesses and must provide a certified statement that he or she is not lacking legal capacity at the time of signing. In addition, any person acting on your behalf (such as your spouse) but not having Power of Attorney will have to file a management plan, as well as post security equal to the value of the assets the person wants to control. Quite simply, it will now become increasingly difficult, more expensive and more timeâ€"consuming to comâ€" FUNERAL DIRECTORS: Terry Cooke Shannon Gowrie Don Clarke Shawn Webb When death occurs in the family, so many decisions must be made and a great number of these decisions involve the cemetery and the alternatives that are available. The Town of Oakville â€" Cemetery Division â€" offers a number of alternatives for you. Our courteous staff are sensitive to your needs and we can assist you in making your arrangements. The Town of Oakville operates two active cemeteries to suit your needs: Trafalgar Lawn Cemetery, located on Highway #5 overlooking the Sixteen Mile Creek, and St. Jude‘s Cemetery, located on Lakeshore Road at the foot of Margaret Drive. Be comfortable discussing your plans with us ... we understand. To receive your complimentary copy of our Oakville Cemeteries brochure, call or write: Always Looking for More Ways to Improve. THE TOWN OF OAKVILLE CEMETERES P.O. BOX 310 OAKVILLE, ONTARIO. LGJ 5A6 (905) 3384236 Not all families want the same type of funeral. Some want a memorial service. Some want a nonâ€"religious service. Each family‘s wish is important so we offer many alternatives to the traditional funeral. This is just another way we have seen to improve funeral service. plete a Power of Attorney. Powers of Attorney signed now, however, will remain valid and in full force under the new legislation. The cost of havâ€" ing a Power of Attorney drawn up is small compared to the potential probâ€" lems if one does not exist. Like insurâ€" ance, it provides peace of mind in the event of an unforeseen accident or illâ€" ness. You will have peace of mind, too, in knowing that someone you have chosen, and whom you trust, will have authority to act on your behalf should you become incapable of doing so. S â€" FUNERAL HOME 56 Lakeshore Rd. W., Oakville, Ont. L6K 1C7 (905) 842â€"2252