Everyone knows that death and taxes are two of life's certainties, but some of us may not appreciate that our tax liabilities don't disappear on death and that our legal representatives become responsible for sorting out our unfinished tax business.
The STEP (Society of Trust and Estate Practitioners) Global Congress held in Vancouver in September, 2018, attracted delegates from over 37 countries and six continents. It was a truly global think tank in which we explored, probed, deconstructed and debated some of the most important changes that are, or will in future, shape and impact the world of family inheritance and succession planning.As Chair of the Program Panel Committee, it was particularly exciting for me to see how the two-dimensional communication of countless emails and international conference calls to develop the Congress became a three-dimensional reality of speakers and delegates from around the world who convened for this biennial event to learn about strategies, new developments, ways of thinking and approaches in family succession.
A power of attorney ("POA") is a legal document in which one person, sometimes termed the "grantor", appoints another person - the attorney - to make decisions and act on the grantor's behalf. In Canada, POAs are governed by provincial and territorial laws. Two types of POAs are used in Ontario for estate planning: Continuing Power of Attorney for Property and Power of Attorney for Personal Care.In order for a POA to be valid, it must comply with the formal POA requirements of the applicable jurisdiction. These requirements are generally concerned with who may make a POA, who may be appointed as an attorney, who may or must witness the execution of the POA and when the POA will be in force. Although the formalities may appear similar across jurisdictions, each jurisdiction generally has its own unique requirements, with the result that extra-provincial/extra-territorial or foreign country POAs may not be recognized locally.
We all sense the increasing speed of change that permeates all aspects of our everyday lives. Whether it's technology, political or economic events, or even the weather with climate change, the constant is change itself. And with constant change comes the need to adapt to it, or even better - embrace it. In observing the laws of natural selection, Charles Darwin observed that "it is not the strongest or the most intelligent who will survive but those who can best manage change". Resilience and adaptability have become the buzz words of our age. A more positive approach to change is not only accepting it, but embracing it and enjoying the challenges of change as a philosophy of life. As the Japanese intellectual Kakuzo Okakura stated, "The art of life is a constant readjustment to our surroundings".
December 10, 2018 marks the 70th anniversary of the Universal Declaration of Human Rights which was a milestone in 1948 for protecting human rights. Surprisingly, older persons are not yet expressly identified as a protected group under international human rights laws. In acknowledgment of the Declaration, the UN International Day for Older Persons has coined the theme for 2018 to be "Celebrating Older Human Rights Champions". With the 70th anniversary on the horizon for the Declaration, it feels important to reflect on older person's rights and the long standing discussion around the proposed United Nations Convention on the Rights of Older Persons (the "Convention").
It's been almost three years since our last blog on the European Succession Regulation. It seems timely to check the pulse and see what impact it is having on estate planning and administration.As a refresher, the Regulation came into effect on August 17, 2015 and applies to all European Union member states with the exception of the U.K., Ireland, and Denmark, each of which decided to opt out.
In March of this year, I wrote about the complications which can arise in administering an estate of an individual who owns a vacation home in a U.S. state such as Florida or Arizona. In that blog, I discussed issues in estate administration which arise from the multi-jurisdictional location of assets and the requirements to obtain probate in different places. Another type of complication which can occur arises from the probate rules in other jurisdictions and the ways they differ from, and are not compatible with, the probate rules in Ontario.
Putting estate planning documents in place can be a daunting task, but it does not end there. Estate planning is an organic process that requires ongoing attention and revision. Circumstances in your life will continue to change and your main objective is to ensure that your wishes and intentions are properly reflected in your plan and documents, both upon incapacity or death. What meets your financial and personal needs now may not do so in the future, so it is important to continue to review your documents, in particular when your circumstances change.
On April 26, 2017, with great fan-fare, the White House announced bold proposals for tax reform, the primary objective of which is to stimulate economic growth. These reforms could be a real game-changer if they succeed in creating new jobs, fuelling economic expansion, and making the U.S. more competitive - and dare I say it ...making America great again.
With increasing globalization of people and their assets, a growing and often hidden threat is multiple taxation on death. Different countries tax in different ways on death, and when those laws collide, the same assets can be exposed to double and even triple tax or more.