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POWER OF ATTORNEY This is a legal document in which an individual empowers another individual with the authority to act on his/her behalf in conducting his/her financial affairs, when an individual becomes permanently or temporarily disabled or incapacitated. A Power of Attorney’s authority ends at the time of death of the individual they are representing, at which time the executor or the legal next of kin takes over. You will need a lawyer to draw up Power of Attorney papers. It is strongly recommended for spouses to protect your rights under the current legislation.’ LAWYERS - EVERYONE SHOULD HAVE A WILL! The need for a lawyer is dependent upon the complexity of the estate. In matters of land, property, stocks and bonds, multi-beneficiaries, feuding beneficiaries, or a complicated Will, it is probably wise to involve a lawyer. A small or liquid (mostly cash) estate usually can be handled by the family. Where there is a Will, it is up to the executor to decide if he or she wishes to use a lawyer or do the work on their own. If there is no Will, (intestate) the family in a small estate may simply make the appropriate changes themselves. If the estate is more complex, the family may file with the court for letters of administration to disperse the estate themselves. However, in the former instance, a lawyer may be used. If you are going to use a lawyer choose him or her very carefully, make sure he/she is reliable and efficient. Remember because a particular lawyer has made the Will and holds it at his or her office, you are not bound to use that lawyer to probate the estate. Pick out a lawyer you can trust and put your faith in. If you do not know any lawyers, ask friends and relatives for suggestions. It may well be wise to ask the funeral director as he/she works with all the lawyers on a continuing basis. HOLOGRAPH WILLS Although a will drawn up by a lawyer is usually preferable, you can purchase Will out-lines at a stationary store or write up a Holograph Will. A Holograph Will is written by the hand of the maker, dated, signed and usually witnessed, it is legal and for very simple estates a useful option. TAXES Is there any tax on the estate? Seldom. Under the current Tax Estate Laws only financially larger estates will be taxed. If you have any doubt as to your situation contact a lawyer. Do I need to file a tax return for the deceased? Yes. If the deceased has earned taxable income in the year of his/her death a tax return must be filed. For help contact the District Tax Office, 19 Lisgar Street S., Sudbury P3E 3L5 at 671-0581 or 1-800-461-4060. If I pay for a funeral, is it considered a tax deduction? No.
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