Do you have a protection mandate? Do you have a power of
attorney?
Without a protection mandate (formerly called mandate in case of incapacity)
If you were incapable, any interested person (spouse,
parents, public curator, etc.) could apply for the court to institute a tutorship for you. Medical and psychosocial evaluations
would be obtained and you would be questioned. A group of
relatives, kin or friends would be
convened. Finally, a judgment would be rendered declaring you
incapable and naming a tutor. It is possible that your spouse will be chosen to
administer your property and take care of you, but another choice could be made. The tutor would
have to report to the public curator every year. In addition, your spouse will have to justify the use of your property for his or her personal benefit, and this may not be possible in a common-law relationship.
With a protection mandate
The protection mandate allows you to avoid the involvement of the public
curator and to choose for yourself who will take care of you and
your property should you become incapable – for example, your spouse. You can also provide for
a replacement in the event that your mandatary is unable to fulfil
this role. You can state that your mandatary can use your assets to
meet the needs of your spouse. You can also decide how much
latitude to give to your mandatary in the administration of your
property. For example, will you allow your mandatary to sell your
house?
Power of attorney combined with a protection mandate
It is possible to combine a power of attorney and a protection mandate in the same document. The advantage
of this is that the power of attorney comes into effect as soon as
it is signed and remains valid until the protection mandate is ratified. Care is in order, however, as a mandatary
who has been granted extensive administrative powers may take
advantage of this situation. To avoid such abuses, certain
solutions should be considered, including:
- Limit the powers to simple administration in the general power
of attorney
- For powers that exceed simple administration, subject the
execution of the mandate to the approval of a professional (e.g., a
notary)
- For a notarized power of attorney, ask the notary not
to issue any copies unless the mandator gives formal authorization
and not to alert the mandatary of the existence of the power of
attorney until the need arises
- Name two or more mandataries, including a professional, and
stipulate that they must always act by majority or unanimity, as
the case may be
Do you know the amount of the monthly benefit you will
receive in the event of a short-term disability? A long-term
disability? Is it enough to cover your needs?
Your disability insurance coverage should be sufficient to
maintain your current standard of living and your retirement
savings. Since disability insurance benefits generally end at age
65, it is important to provide for retirement capital (registered
or not) to allow you to maintain your standard of living in
retirement. To do this, you need to purchase retirement
protection.
If you pay your own disability insurance premiums, the income
you need to protect in the event of disability is equal to your
monthly work income less taxes and other deductions – in other
words, your net income.
If your employer pays part or all of your disability insurance
premiums, your disability insurance benefits will be taxable, so
you will need to protect your gross or before-tax income.
If you travel outside of Quebec, do you purchase travel
insurance?
According to the Régie de l'assurance maladie du
Québec website, when travelling abroad:
"The Régie de l'assurance maladie reimburses at pre-set
rates the cost of hospital services received as a result of a
sudden illness or an accident, as follows:
- a maximum of CA $100 per day for hospitalization;
- up to CA $50 per day for healthcare received at a hospital
outpatient clinic. For hemodialysis and the required medication,
the Régie reimburses up to CA $220 per treatment,
regardless of whether the person is hospitalized."
Before you leave, you should check whether your group insurance
includes travel insurance that repays medical and hospitalization
costs abroad. If not, buy individual insurance.
Good travel insurance includes cancellation insurance (before
the trip) and interruption insurance (during the trip).
The example below, from the Régie de l'assurance
maladie website, is a good illustration of the risk you are
taking if you travel without travel insurance.
Example of what the Régie pays
when an insured person is hospitalized in intensive care for three
days in Florida after a heart attack:
|
Amount charged
|
Amount covered
by the Régie
|
Amount payable
by the patient
|
Hospital services
|
$25,000 CA
|
$300 ($100 CA per day)
|
$24,700 CA
|
Professional services
|
$1,000 CA
|
$435 CA
|
$565 CA
|
Total
|
$26,000 CA
|
$735 CA
|
$25,265 CA
|
If you are the
owner of an incorporated company... Do you have a shareholders
agreement? Does it still reflect your situation?
A shareholders agreement (or partnership agreement) is a legal document. Its main purpose is
to set out in advance how to handle various situations that may
occur among the shareholders, such as a death, a retirement, a
temporary or permanent disability, or a conflict. If there is a
conflict, the agreement must provide the means to resolve it.
Why should shareholders who see the future shining before them
sign such an agreement? Well, we could answer this question by
saying that this kind of agreement allows them to determine now,
while relations are still good, how they can effectively resolve
conflicts that may occur if their current optimism were one day to
become tarnished.
Have you taken all necessary measures to ensure
the survival of your business in the event of your
disability?
If you have a business, you should have a disability clause in
your shareholders agreement. This clause should spell out the
conditions for the redemption of your shares if you become disabled
permanently or for a long period of time, such as two years. The
clause should also provide a special management mechanism during
your absence due to disability or incapacity. It is a good idea to
consult a legal expert on this matter.
Top of page