What could happen to their estate given the format

Assignment Help Financial Accounting

Reference no: EM133378780

Scenario 1:

Debbie and Jack married three months ago. Debbie (34) works as a retirement consultant. She has a son, Tim (8), from a previous marriage. She and Tim have no contact with Tim's father. Jack has started the process to adopt Tim as his own son. Jack (36) is an engineer. He travels frequently for his job, across Canada and occasionally to Europe. He also has a son from a previous marriage, Austin (6). Austin visits every other weekend. He really enjoys playing with Tim and considers him a great big brother. Since their marriage, Jack and Debbie have been busy. They arranged a mortgage on their new house in Toronto, and they were each approved for individual term life insurance for $200,000. Through work Jack also has a term life insurance policy with the death benefit payable to his estate. Jack and Debbie have GICs and RRSPs in their own names.

Question A. Identify and EXPLAIN three main estate planning goals that are related to Debbie and Jack case.
Question B. Explain to Jack and Debbie why Powers of Attorney, personal care, and property, are extremely important to this couple. When explaining each, please reference specifics to the couple's situation
Question C. Identify and JUSTIFY the 5 MOST important clauses for Jack's will specifically related to the information provided in the case. List your top 5 in order of importance

Scenario 2:

Manuel is a 79-year-old client of yours. Lately, Manuel has been getting confused and forgetful so, at his son Hansel's insistence, he is planning to draft a new will. Manuel plans to disinherit his wife, since she now lives in a nursing home, and name Hansel as his primary beneficiary. He also plans to create legacies for his minor grandchildren, in trust until they each reach age 30.

Hansel doesn't want his father to spend a lot of money on a will and recently bought Manuel a "do-it-yourself" will kit from the local bookstore. Manuel plans to complete it by filling in the blanks. He intends to name his brother, Fraser, age 76, to be his executor. He also wonders if you would be one of the witnesses.

While reading the paper on Sunday, Manuel noticed an article on "powers of attorney" and their importance in an estate plan. Manuel thinks that it could be important for his son, Hansel, to have power of attorney over his banking and investment affairs in case he's unable to make decisions for himself. But he's concerned that this would give Hansel rights to his house and cottage. He also worries that Hansel might take advantage of the PA to change Manuel's will. He wants to know if he could use the power of attorney to authorize Hansel to make medical decisions on his behalf, should it become necessary.

Consider Manuel's situation. Using the details provided in the scenario and the knowledge you have gathered:

What advice/ clarification would you give Manuel regarding 'wills? (Discuss any five points)
What advice / clarification would you give Manuel regarding 'Powers of attorney'? (Discuss any three points

Scenario 3:

Jake and wife Jenny are your clients who got married in January this year. They live in Ajax and have come to discuss with you, their financial planner. Jake is a small business owner and has substantial assets. Jenny has an investment account and wants to discuss about it.

During the initial discovery process, you learn that Jenny was previously never married but was in a common-law relationship with the father of her two adult children. She does not have a will.

Jake had a will prepared and signed before his divorce from his first wife in 2019. Just before his marriage with Jenny, Jake downloaded and personalised an online "do it yourself" will which he printed and signed. In this will he provides for Jenny and his two teenaged children from his previous marriage. He believes this new will supersedes the earlier will he had before his divorce. Jenny's children are not close to Jake's.

Question:

In the event of Jenny's or Jakes death, what could happen to their estate given the format of Jack's will and the lack of a will for Jenny? What risks would the survivors be exposed to?

Reference no: EM133378780

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