The topics discussed in this episode of Power to Heal are intended for educational purposes only.
Please consult the lawyer to discuss your individual estate planning needs.
I always say that estate planning is for everyone.
That's because at the end of the day, no one lives forever and anyone can experience an accident or illness that renders them incapable.
It's something that too many people put off until sadly it's too late.
And without it, your hopes of leaving a thoughtful legacy for your loved ones might never be realized.
It is a properly crafted will.
Your final statement on what should happen to the assets and financial resources you've accumulated by the end of your life.
But even beyond that, your will can continue to make an impact long after your passing, especially when you include a legacy gift to a charitable organization that reflects the
causes you care about the most.
In this episode of Power to Heal, we'll help demystify what goes into planning your estate, why preparing a will isn't just for older people,
and how sometimes bad things can happen when your good intentions aren't captured in a clearly written will and estate plan.
This is the power to heal.
In this series of podcasts, we'll focus on the many innovative ways PeaceArch Hospital, located in White Rock, British Columbia, Canada, has been an integral part of its
community.
We'll take you behind the scenes of the hospital's dynamic fundraising arm and talk to those who are instrumental in creating new initiatives to help this important healthcare
facility grow and evolve along with the town it serves.
In today's fast-paced world, it often feels like everything and anything has the potential to be disrupted in an instant.
And in much the same way we would prepare for a long outdoor adventure trip, our journey through life can seem a little less uncertain when we make a thoughtful estate plan sooner
rather than later.
For younger people especially, this may all seem a bit premature.
But stop and think about what would happen if tragedy or illness struck and your life was cut short.
who would take care of your children or your pets or any business ventures you're involved in.
The importance of putting your final wishes into writing is something our guest, Cleveland, knows all about.
She's a lawyer who specializes in wills and estate planning, and as you'll hear, has a deep connection with Peace Arch Hospital that extends beyond her role as vice chair of its
foundation.
Joining Grace is Selena Lai, the Hospital Foundation's philanthropy officer for Legacy Giving.
Grace and Selena spoke with the Power to Heal host Lance Peverly, a journalist and former editor of the Peacearch News and a longtime resident of White Rock, South Surrey.
Grace, I've been so looking forward to this conversation, as it's a topic I avoided till far too late in life.
I was a father of three, well into middle age, suddenly single, and I had no will.
Before we get into the specifics of estate planning, want to ask, am I a rarity?
Are most people far more organized?
Do they create a will in a timely fashion and plan for the inevitable?
You are not alone.
In fact, there are more Canadians without a will than Canadians with a will.
So the good news is, it's never too late to get started.
Well, I have a feeling this is a conversation for all of us, whether we'll be able to leave a large estate or for those just getting by.
but who want to ensure reduced stress for their loved ones.
Although we're talking today about something that will impact everyone at some point in their lives, your own story, like mine, has a very specific connection to not only White
Rock, but Peace Arch Hospital.
I understand you were born there.
I certainly was, and I also grew up just a few blocks away.
I did leave town for a while to attend university, but it was always my plan to come back as soon as possible.
And then about a year ago, I gave birth to my daughter at the Peace Arch Hospital.
Yes, thank you.
And I'm just so excited for her to grow up on the peninsula like I did.
It's a pretty special place to call home.
Well, I'm told that another early connection to the local community was your experience working in your father's White Rock Law Office and your journey towards becoming a lawyer
specializing in wills and estates.
So I always thought that I would
work in White Rock, but I didn't know that I would be a lawyer.
And I started out at the office as a receptionist and a legal assistant before I decided that, I could do this.
I'm going to go get a law degree.
What was it specifically about estate planning that attracted you as opposed to say, criminal law or corporate law?
There's a lot to love about wills and estates, but the best part for me is that I get to work with people from all walks of life and often multiple generations of families.
and helping to provide them with a service that they really need.
Sometimes people are coming when they've already experienced a loss.
Sometimes they're coming because they're anticipating one will be coming soon.
Whatever the case may be, I like to be there for my clients to help them through tough times and help them avoid tougher times with proper planning.
In my 20s, wasn't too concerned about dying.
In my 30s, I had my first child and I had my first brush with cancer and I assumed that if I died, my children and spouse would simply get everything without really needing a will.
In your work, I understand you stress the importance of having a will, even for young families.
How do you go about convincing people in their 20s and 30s that estate planning is not just for older people?
When people die without a will in place, there's legislation that provides exactly what happens.
And the problem is it's often not what you think will happen and many times not what you would like to happen.
So for young families, that's often a big surprise.
You would expect that everything would go to the surviving spouse, but in fact, that's not the case.
The surviving spouse only receives a preferential share of the estate and the balance is divided between them and the children.
with the children's share being held and controlled by the public guardian and trustee.
This can be pretty brutal when it means that the spouse is not left with enough to even keep the family home in place.
Obviously that situation would only worsen if we're dealing with both parents having passed with no will in place.
So failing to plan
is really, in a sense, planning to fail.
And when young children are involved, the effects can be pretty heartbreaking.
The legal processes that occur when you pass away or when you lose capacity don't change based on age or affluence.
And with all of this in mind, I find that most of my clients, regardless of age, tend to agree that a basic estate plan is something that all of us should have in place.
Now, when it comes to families with young children,
This couldn't be more true.
That's because a will not only allows you to choose guardians for your children, but also to create personalized trust provisions with respect to their inheritance, all of which
keeps you in the driver's seat even when you are gone.
I'll share a personal experience I went through about eight years ago.
My best friend died suddenly, had no children, but he was a loving uncle with siblings and older parents, and he died without a will.
I ended up being asked to be his administrator by his family and I was legally appointed.
I was very lucky.
Nobody challenged me or gave me pressure of any kind.
And when I consulted mutual friends, all seemed to be on the same page.
I'm told this is rare and it's all too common for families to be embroiled in bitter legal disputes over estates that either poorly planned or like my friend where no wills exist at
all.
Is this true?
It's sadly very true.
I've seen entire estates eaten up by the lawyers' fees over lengthy court battles, sometimes over one heirloom.
or one piece of property.
I've also seen estranged family members that inherit everything rather than the deceased person's favorite niece or their lifelong friend or even their charity of choice.
So it can be pretty tragic when someone has failed to plan and everything falls apart.
So that's why sometimes we say,
Either you spend the time now to get your affairs in order or someone else is going to have to spend a lot more time and a lot more money in the future cleaning up the mess that
you often inadvertently left behind.
Now, a lawyer by definition has to take the side of their client in the dispute, but the judge or the mediator can be a bit more even handed.
But does our legal system accomplish justice in the end?
Every time you go to court, I think
people can agree that it's a dice roll.
You don't know who you're going to end up in front of.
You don't know how long it's going to take to get there.
And judges like people are sometimes coming to a given file, you know, with their own biases.
So realistically, going to court should be everyone's last option.
It's hugely expensive and there is no guaranteed outcome.
I think what you're telling me very clearly here is that you...
Whatever stage in life we're at, we've got to think about it.
We've got to consider this and deal with it appropriately.
I always say that estate planning is for everyone.
That's because at the end of the day, no one lives forever and anyone can experience an accident or illness that renders them incapable.
If tragedy strikes and you have your documents in place, your people can step in immediately and with ease to do what needs to be done.
If not, the process becomes significantly more complicated and costly.
Are you part of the one quarter of Canadians who say they're too young to worry about preparing a will?
Or the 51 % of adults in this country who don't have a last will and testament in place?
If those statistics from a 2017 Angus Reed Institute survey don't seem worrying enough, then consider this.
Only one third of respondents to the study claim to have an up-to-date estate plan.
And while these numbers starkly outline how many people haven't had a will written, the reasons why so many Canadians are reluctant to do so is more complex.
In addition to those who say they're simply too young to concern themselves with estate planning, Canadians also cited a lack of assets, the expense of preparing a will, a
reluctance to discuss personal details with a stranger.
and an unwillingness to think about their own mortality as reasons for not having their final wishes formally written down.
When planning our estates, it can also include leaving gifts for causes and organizations that are meaningful to us.
Today, it seems like more young people than ever have an engagement in issues affecting our communities.
When you bring up the topic of legacy giving with your clients, do you find many are receptive to this idea?
When it comes to my younger clients, I find that they're raising the idea of charitable giving before I even have a chance to bring it up.
But I have to say that regardless of age,
most of my clients do have a desire to make a difference.
And more often than not, it seems like people choose to support something local that they or their loved ones can see and enjoy in real time.
So I don't know if that speaks more to the generosity of our community or more to the trust that people have in our local charitable entities, but it's definitely a growing
trend of giving back.
that's pretty inspiring to see.
There's also a practical side to this, so tax advantages or other timely benefits to consider?
It's really a win-win when you make a gift to a registered charity through your will, because it entitles your estate to a tax credit that can offset or entirely eliminate the
taxes triggered by your death.
So instead of giving money to the CRA when you are gone, you can give it to the charitable organizations whose work matters most to you.
I'd like to bring Selena Lai into the conversation.
She's the philanthropy officer for Legacy Giving with Peace Arch Hospital Foundation.
Selena, what is a Legacy Gift?
Is it money or assets or something else?
A Legacy Gift is a charitable gift that someone may consider when they are in the process of estate planning.
Most commonly, this is made as a gift in the will, as a cash request, or a residual percentage of an estate.
However, a Legacy Gift can also be made by designating the charity
as a beneficiary of an insurance policy, RRSP or RIF, donating securities or even gifting a home.
All of these ways of giving can help minimize taxes for the estate.
When people leave legacy gifts for the Foundation, can they ask that they be directed in a specific way?
Certainly, when people are interested in leaving a legacy gift for the Foundation, I appreciate having the opportunity to get to know the individual and understand their
connection to the hospital.
Having these conversations ahead of time
helps guide us to understand how someone may want to have their legacy gift used in the future and if they would like to receive any recognition as part of leaving a legacy to
the hospital and the community.
For those who aren't particularly sure which way they want to leave it, what do you recommend in terms of maximum impact on health care for the community?
In general, as we never know when these legacy gifts are going to be realized in the future, I highly recommend people to designate their gifts towards our area of greatest
need fund in their will.
That way they can be assured that their gift will be going towards what is most urgently needed by the hospital and the community at the time when the gift comes in.
One example of how legacy gifts can help us when they are designated to the area of greatest need is when we were renovating our emergency department.
It was during the height of COVID and it became apparent that we needed to have spaces and tea rooms that could help better maintain infection control standards for patients and
staff in the ER.
Because we had legacy funds for the area of greatest need, we were able to build these anti-rooms for infection control right away as the existing renovations were taking place.
If we had gone out to the community to fundraise for these urgently needed anti-rooms, we wouldn't have been able to get these spaces built in time.
That doesn't sound like something we could have thought of ahead of time.
You couldn't plan for that five years ahead or anything.
No, no, absolutely.
So that's why having those funds available in the area of greatest need really helps us.
to use those funds when we need it at that time.
Are there any other examples of areas of greatest need that have popped up unexpectedly?
Certainly during COVID as well, we purchased a number of pieces of equipment that helped with the cleanliness of the hospital.
So those pieces of equipment, we couldn't have anticipated without knowing that COVID would be happening.
Now, when people choose a specific direction for their gift, can you give some examples of what they might choose?
Certainly if there is a department that they are very connected to,
if their loved one was very passionate about.
We respect those decisions.
But with that, we don't know when those funds are going to come in.
And it could be that if someone, you know, 10 years ago really wanted to support the emergency department, that's great because we were able to put those funds to good use
when we had the emergency department renovated.
But if someone today were to want to designate their funds to the emergency department,
It's already been renovated, so we wouldn't be able to put those funds to as best use as we could have if we had needed it at that time.
Grace, we've talked a little about Peaceheart Hospital being close to your heart.
You were born there and you're now vice chair of the Hospital Foundations Board of Directors.
How has the hospital affected you on a personal level?
Well, just last year when I went in to have my baby, it turned out to be a little more challenging than I had anticipated.
I'll never forget the sound of the vital signs monitor going crazy or the fear that took over my body when I realized she was in distress.
Her lungs filled with fluid during birth and so she came out unable to breathe.
Fortunately, there is an incredible medical team at the Peace Arch Maternity Ward and they worked on her tirelessly with an aspirator, a ventilator and all sorts of equipment for
what felt like forever.
Eventually, they were able to get her breathing and although she had to spend the next few days in and out of an incubator under pediatric supervision,
I'm so grateful to be able to say that my daughter survived thanks to the amazing doctors and nurses at PeaceArch.
I'm sorry you went through that, but it sounds like just a wonderful turnout from how it worked.
You must have been in quite the panic and maybe not yourself during that period.
That's putting it lightly.
was definitely a terrifying ordeal.
We're grateful to know that you and your daughter got through that frightening time and today are doing fine.
Did this experience in any way solidify your appreciation of having a healthcare facility like Peace Arch Hospital in the community and for the generous donors who ensure quality
healthcare is close at hand?
The entire experience was a major reminder of how lucky we are to have our own community hospital and how important the work being done by the Peace Arch Hospital Foundation
really is.
Our donors' contributions ensure that our medical professionals have the facilities and equipment they need to do their job.
They ensure that our hospital is and continues to be the best it can be.
Without them, my daughter's story might have had a different ending.
So as a patient, new mom, and vice chair, I'd like to extend my heartfelt gratitude to each and every one of our donors for their life-saving gifts.
Selena, how important are legacy gifts to the Hospital Foundation?
Do they form a significant part of your fundraising efforts?
Yes, absolutely.
This past fiscal year, the estate gifts we received made up 40 % of the Foundation's fundraising revenue.
While this number will fluctuate year over year, the collective power of legacy giving is evident.
Many people are able to leave a legacy gift that is much greater than what they might be able to give during their lifetime.
Even after leaving money in the will for family, a gift of 1 or 5 % of the residual assets from an estate can be quite significant.
These gifts also provide the Foundation with revenue.
as we consider our future fundraising plans and projects.
Legacy Giving, also known as Planned Giving, is a donation made through your will toward a charitable cause that mattered to you during your lifetime.
These gifts can include a predetermined amount of cash, specific assets such as land or publicly traded shares in a company, or a share of the residue of your estate.
According to RBC Wealth Management, Legacy Giving allows you to enjoy the use of your assets during your lifetime.
knowing that a cause or organization you care about will benefit after your passing.
RBC also notes that some kinds of legacy gifts may offer immediate tax advantages while you're still alive, such as when you donate a life insurance policy to your chosen
charity.
But whatever option you choose, seeking out professional advice will help ensure your legacy will be a lasting one.
Grace, assume legacy gifts might come up when older people plan or revise their will.
What are some of the key elements in a will that your younger clients are most surprised or even shocked to learn about?
Well, a will does so much more than just set out who is to administer your estate and what their job is to involve.
Often that includes charitable giving or providing instructions for the care of minor children, as we've discussed.
But a will can also provide controlled funding for adults with a disability.
people with addiction issues, or even our furry friends.
It can provide for distribution of specific pieces of personal property or address gifts or loans made during a willmaker's lifetime to avoid confusion down the line.
It can even carve out assets from the probate process, like shares in a privately held corporation, to result in major savings for a given estate.
Wills are
an important part of the conversation, but I also want to note that a will is not the only thing that I like to remind my clients about.
A complete estate plan also requires planning for potential and capacity.
And that's done in British Columbia with the power of attorney and a healthcare representation agreement.
These documents say who will manage your property and affairs if you become incapable of doing so yourself, or who will manage your personal care.
and healthcare decision-making, again, if you're incapable of doing so.
So really these three basic documents cover you for life and death.
Appointing an executor or power of attorney are essential components of estate planning.
What exactly are the roles and who should we ask to fill them?
That's a great question.
And although the same person can act in both roles, there are important distinctions between the two.
An executor is named in a will.
Their job begins when the willmaker dies and they're responsible for administering the estate.
On the other hand, an attorney is named in the power of attorney.
Their job will be during that person's lifetime to manage the person's property and finances if they become incapable.
Choosing a proper or appropriate executor or attorney often boils down to the same thing.
Who would you trust to do the job?
But you also wanna pick people that are capable of acting.
For example, you wouldn't want to name someone who has a history of making poor financial decisions or someone who might be biased in favor of one or another beneficiary.
Similarly, it's a good rule to avoid naming someone who's quite elderly as they may not be around when the time comes to act.
Interestingly, it's also important to consider location.
not only from a boots on the ground point of view, but also because there can be negative tax consequences for you or your estate if your chosen executor or attorney resides
outside of Canada.
There's also a chance that if you choose exactly right and you get all the correct qualifications that the person may not be available to carry out their duties years later
when they're needed.
Are there any other options to consider such as engaging a trust company to act as your estate executor?
There are so many good reasons to work with a trust company.
They offer expertise, which really is great for every estate, but especially for those where a minor or a person with a disability is involved.
Trust companies also offer neutrality, which can go a long way if your beneficiaries include quarrelsome family members or maybe a sometimes strained blended family situation.
The other thing is trust companies
provide Canadian residency so they can really save the day if all of your loved ones reside outside of Canada.
Is there a way to combine this?
you name the person that would be absolutely perfect, but if they are no longer available, that you do have a backup, maybe in a trust company?
Estate planning is all about covering for contingencies.
So I definitely recommend naming a backup.
And if that backup is a trust company, the reality is they're not going to die.
They'll be there to do the job.
If your first
chosen person can't.
Well, the other thing with time is life can be so unpredictable.
Changes to our finances shifting slowly over years or even suddenly.
Beneficiaries may be passing away unexpectedly or maybe their needs are changing.
How often should we review our wills?
That's a great question.
And we say every five years makes sense just for a housekeeping.
Maybe you take a look and nothing changes, but at least you have that peace of mind knowing that what you have is still going to work.
How about if there are sudden changes in our life?
Like if any of our listeners win the lottery tomorrow, should they be on the phone to their lawyer?
Yes, I think that regardless of the situation, you want to have your affairs in order because even though I am a healthy young person, I could get hit by a bus tomorrow.
So you just never know what the future has in store.
And the only real way to prepare for the unexpected is to have your documents in order.
And that basic estate plan
is pretty painless to hammer out and there's no reason why everyone shouldn't have a will, a power of attorney and a representation agreement tucked away in the drawer so that if
something happens, it's there.
Bye!
Getting back to legacy gifts, first and foremost they're designed to benefit the organizations and causes that we care about once we pass on.
As we've discussed, they also produce practical results for this state in terms of things like tax credits.
But are there other more intangible benefits that legacy giving leaves behind for our loved ones?
I'm thinking in terms of the charitable legacy that we can create to inspire in our children and grandchildren to follow our example.
I completely agree.
It's important to set a positive example for our children not only in all of the little things we do each day, but also in terms of the big picture.
I personally feel a responsibility to teach my daughter to try to make the world a little bit better than she finds it.
And part of that for me means supporting the causes and organizations that are close to my heart, both while I'm alive and eventually when I'm gone.
At the end of the day, I think we all have more to give than we might realize.
And giving back is really what it's all about.
That's a legacy I encourage us all to leave behind.
To finish up, I'd like to ask Selena if any listeners out there are thinking of making the Peaceheart Hospital Foundation a beneficiary in their wills, how can they reach out for
more information?
I welcome anyone interested in learning more about legacy giving to give us a call at the Foundation office or send an email to our team and we'd be happy to provide more
information and discuss the vision for their legacy gift.
So for anyone interested, we can visit our website at pahfoundation.ca.
Grace Cleveland and Sylvia Lai, thank you both for joining us.
I hope our listeners are encouraged to spread the word on both legacy giving and the importance of planning for their loved ones' future.
Thanks Lance.
Thank you.
The Power to Heal podcast presented by PeaceArch Hospital Foundation in White Rock, British Columbia
takes you behind the scenes of an innovative hospital foundation and introduces you to the team who find new and sometimes surprising ways to engage with the local community and
help fund the best healthcare possible in the region.
Since 1988, the foundation has raised over $250 million for capital projects, medical equipment, and community health programs.
Their passionate and caring team's number one priority
is the prudent stewardship of your gifts and the resulting positive impact on patients and medical staff at Peace Arch Hospital and the entire White Rock South Surrey community.
Peace Arch Hospital Foundation, where innovation comes to life in so many ways.
The simple act of giving is truly transformational.
Every dollar we receive is enhancing health care in this community, whether it's supporting our capital infrastructure, the purchase of essential medical equipment, or
funding a wellness program like stroke recovery or a children's club to encourage healthy habits and active play.
Our wide range of giving options includes monthly donations, an increasingly popular and convenient choice that makes the greatest impact on your community hospital.
You just sign up once and the rest is automatic.
And that includes receiving a consolidated tax receipt at the end of the year.
But no matter what giving option you choose, it all matters and it all makes a difference.
Be sure to subscribe to Power to Heal wherever you get your favorite podcasts.
Each episode brings you inspiring stories about the Peace Arch Hospital Foundation and its innovative approach to supporting better healthcare throughout the White Rock South Surrey
community.
Thanks for listening.
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