Cover the Legal Issues

Urge your parents to formally record or update their wishes concerning care should they become mentally or physically incapacitated. And determine how they want to distribute their property upon death, otherwise, the estate would be subject to the dictates of provincial law. They'll need three key documents:

Continuing (or durable/enduring) Power of Attorney for Property. This allows the parent to authorize a trusted person to make financial decisions. For example, you could cash pension cheques and pay bills for your mother if she became ill. Without a Power of Attorney, you must apply to the courts for guardianship. This can be a lengthy and expensive process to simply give you the legal right to look after a loved one.

Power of Attorney for Personal Care. This is similar to the Power of Attorney for property, but it also authorizes someone to make decisions about health care, nutrition, hygiene, shelter, clothing and other concerns.

Will. A legal will is the best way to ensure that property is distributed as intended after death. Otherwise, the provincial courts determine the distribution of assets - and dear friends and favourite charities could be left out entirely.

It's generally best to have a lawyer draft the will. Your financial advisor can recommend one and may have suggestions for saving tax and probate fees. Lawyers usually charge fees for wills and typically include Powers of Attorney as part of their services. By taking the time and spending the money necessary to properly organize your parents' affairs you can avoid unforeseen expenses and stress later on.