Personal Finance

Does my friend need a will or a power of attorney?

  • Last Updated:
  • Apr 13th, 2013 1:35 pm
Tags:
None
Member
Feb 2, 2009
278 posts
72 upvotes

Does my friend need a will or a power of attorney?

A unmarried friend has no relatives or children here in Canada, and has some valuables, a life insurance policy, and some Canadian bank accounts. She lives in Ontario.

She would like everything turned over to her mom (her closest living relative) in Asia in case she dies.

Whenever she was asked to name a beneficiary in these accounts, she had specified her mom.

She can entrust me to file the paperwork to do it. Does she need a will or a power of attorney to be assured that this gets done by me (or can be done by me)? Will it cost a lot of money to prepare the authorizations I need?
6 replies
Deal Expert
User avatar
Sep 19, 2004
26762 posts
9330 upvotes
where I belong
I think a person can draft his/her own will and it's legal/official

Whether who'll execute it after the death is probably the question?

I'm curious to the question also
Which Credit Cards to sign up? >> Jerry's Mega Thread of Credit Cards Q&A
Sr. Member
User avatar
Jan 1, 2008
576 posts
229 upvotes
Brossard
Everybody needs a will... unless you want the government to decide what happens to your stuff when you pass. Law change from one proving to another, and from one country to another. Life insurance will go to the beneficiaries but pretty much everything else needs to be specified in a will or else it will be subject to whatever laws in the area in which she lives. The costs of making a will vary from one province to another as well. There are ways of doings will on the cheap, read even free, but you risk going into probate which can drag out over a long time, even years in some cases. I am not a legal professional, but I would advise you to at least talk to one who best understands the laws in your area.
Sr. Member
User avatar
Jan 1, 2008
576 posts
229 upvotes
Brossard
jerryhung wrote: I think a person can draft his/her own will and it's legal/official

Whether who'll execute it after the death is probably the question?

I'm curious to the question also

That's called a holographic will. It's not legal everywhere, and can most easily be contested in places where it is allowed. You would generally name the executor in the will itself.

But once again, I work in a bank, and I analyse credit for a living, so I'm no expert.
Deal Addict
User avatar
Mar 29, 2008
4117 posts
1216 upvotes
A power of attorney is only valid until the grantor dies. A good starting point for her to learn about POAs (and maybe even to get a useable template) is the Ontario Ministry of Attorney General website. Just do a Google search.

I'd strongly recommend most people get POAs for property and personal care drafted.
Sr. Member
Jul 18, 2009
679 posts
103 upvotes
If your friend does not have a will, then how will you have the authority to do the paperwork for her? One of the most important parts of the will is the appointment of an executor to wind up the deceased's financial affairs.

A power of attorney is arguably an even more important document to have in place. If a person becomes incapable of managing his or her money - i.e. suffers a trauma or ilness which incapacitates him or her - then if there is not an attorney for property appointed, the office of the public guardian will be in charge of handling the finances of an incapacitated person. They are a pain to deal with, so it's much better to appoint a trust friend or family member, or a professional or trust company, to ensure that you will be well taken care of in such circumstances.

As well as appinting an attorney for property, everyone should have a power of attorney for personal care in place. The attorney for personal care is a person you appoint to make health care decisions if you can't.
Deal Fanatic
Feb 15, 2006
9183 posts
3861 upvotes
Toronto
If your friend cares about making sure things done the right way, then definitely get a will done properly, by a lawyer. If she wants to save money, and doesn't care that things can become messy, contested, and drags on for years, then just do whatever without a proper will. It should be an easy decision, but depends on whether she wants to spend the money or not.

Top