# power of attorney needs some advice...



## mcr (Jan 20, 2016)

Attempting to deal with a banking/financial mess that is in place from my aging father. He has Alzheimers/dementia/copd and a variety of other aliments. 

He will be 71 years old this year. 

During the course of his years, he opened multiple accounts with just about every bank that is out there, and I need to simplify this mess. I do have full POA to make the changes.

I'm hoping some of you may have similar experience or have some suggestions to help me out, so I'm just going to toss out a few questions:

1) RRSP's I know have to be converted to RIF's this year - is that before his birthday, or just by end of year?

2) There are GIC's obtained from each bank - is there a way I can amalgamate all these to one bank? and what's the best way to deal with these? There are several small dollar ones staggered in anniversary dates (makes sense, but at the small dollar values these are it doesn't seem worth it). Some are locked in at 1% or not much more. I can do better managing that money in mutual funds (or is there something better?).

3) the remainder is in dormant savings and chequing accounts which I'm in progress of closing and amalgamating with one savings account with each bank - once I get #1 and #2's figured out from above, I'd like to just take everything to one bank so it's easier on me and I can manage the money flowing in and out.

any suggestions/thoughts?


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## mcr (Jan 20, 2016)

Also wondering (especially after reading: http://canadianmoneyforum.com/showthread.php/62001-A-Day-in-the-Life-of-an-Executor )
is there benefit to transferring the money into my name/banks for management and less hassle after he passes away?


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## 0xCC (Jan 5, 2012)

RRSPs need to be converted to RRIFs by the end of the year the RRSP owner turns 71. (http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/trnng69/yrwn-eng.html)

Are the GICs cashable? If they are and even if you have to give up the interest to cash them in it might be worth it. I'm not too sure about transferring GICs into a single account.

It seems like it makes sense to try to get everything into one place. It will make things easier for you to manage.


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## fraser (May 15, 2010)

First off I would transfer everything into joint name with your father. Anything that cannot be done this way such as life insurance,mutual funds, options etc should be changed to have YOU down as he beneficiary NOT his estate. If he has a safe deposit box ensure that you have registered access to it. 

If he has a DB pension from his employer find out the details. Depending on the pension and the payout options he selected it could be possible that he has a guaranteed minimum number of years of payout such as 10. If he did select this option ensure that you are down as beneficiary. Also check on employer life insurance. Many DB pension plans include a small amount of life insurance. Mine for example has a $10K policy.

The purpose is two fold. First is to avoid probate in death and the associated probate taxes. Second-so much less paperwork or legal fees.

I would consolidate as much as possible into one joint bank account. Same with GIC's..if you cannot at the very least see if you can get them switched to joint if they are in his name.


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## pwm (Jan 19, 2012)

I completely agree with fraser's comments. Joint accounts are what you need to do ASAP. When my parents passed on, no estate came into existence in either case. My father died first and everything was then owned directly by my mother. I made all her accounts joint with me and the same was true when she died. I did not have to act as executor because there was no estate. 

Now in my case, I was an only child so there was no issues regarding siblings. Not sure what your situation is in that regard, but that can be discussed and dealt with.


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## naysmitj (Sep 16, 2014)

Depending on the estate size and number of dependants, you may be better served to meet with a lawyer who specializes in estates so that it can be properly organized prior to your father passing away.


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## AltaRed (Jun 8, 2009)

pwm said:


> Now in my case, I was an only child so there was no issues regarding siblings. Not sure what your situation is in that regard, but that can be discussed and dealt with.


None of the above (joint accounts) may be permissible if the Will has other provisions for beneficiaries, and especially if there are other siblings who, depending on province, could have a valid entitlement to a portion of the estate. The Attorney could leave the still living (but incompetent) parent high and dry with zero assets and become a ward of the state. 

I further cannot imagine a financial institution allowing an Attorney to include himself as a joint owner of anything of the property the Attorney is allowed to manage if the living (but incompetent) parent is still alive and cannot be signatory to such matters.

Added: I do agree that everything should be consolidated where possible, but in the name of the father. I suspect there is enough assets there to consolidate everything into one financial institution, e.g. a bank (chequing and savings) and a discount brokerage accounts (taxable, RRIF, TFSA).


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## fraser (May 15, 2010)

I was certainly able to renew investment certificates that had been in my mothers name to be in hers and my my name by virtue if the POA.

The TD expired. It was deposited in her account. Immediately a new TD was taken out in our joint names. Banks do not care about a will prior to death nor should they. They only care about a POA and will follow instructions accordingly if the POA is in order. POA gives you the power to act and to instruct the bank. They will follow your direction. Clearly a risk in some family situations. I have never heard of a bank or financial institution asked to see a will either befor or after a death. Prior to death they follow POA instructions, after death they simply wait for the probate release and then release funds to the executor as identified in the probate documents.

We were able to switch everything over with the exception of one TD that was in her name only and had not matured. This made us have to go to probate but we paid significantly less probate tax because we had switched most of the assets over to joint

Estate taxes are an absolute scandal. A tax on momies that have already been taxed.


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