TORONTO, June 12, 2013 /CNW/ - A large number of Canadians are not paying attention to the "gap"
between their healthy life expectancy and their overall life
expectancy, according to "Mind the Gap: What Canada's Baby Boomers Need to Know to Protect
Themselves," a special report produced by RBC Wealth Management. The "gap" refers
to the increasing number of Canadians who are now living nine to 11
years past the time they are considered "healthy." As a result, these
baby boomers must address certain vulnerabilities that they may face.
"These changing demographics present challenges that we haven't seen
before in Canada," said Tony Maiorino, head of RBC Wealth Management
Services. "Specifically, while we have always been keenly aware of the
financial vulnerabilities faced by persons over the age of 65, our
concerns lie equally with the growing demographic of Canadians who will
no longer be able to manage their own financial affairs due to health
issues. This means an increased need for resources and concern for
those who have not planned for the possibility that they may be unable
to act or make decisions for themselves. There is a growing urgency
around this issue and Canadians need to be aware of it so they can plan
While the consequences of this gap have broader societal, health and
legislative implications, "Mind the Gap" focuses on the financial
wellbeing of Canadians who comprise this growing population.
"Without question, creating a Power of Attorney (POA) is a prudent
course of action," said Maiorino. "While the document itself is an
essential estate planning tool, of equal importance is who will take on
the role. Appointing the most appropriate person or people to take on
the role of attorney is a vital decision."
A Power of Attorney (Mandate in Anticipation of Incapacity in Quebec) is
a legal document whereby one person (the "donor") gives one or more
persons (each an "attorney") the authority to act on his/her behalf,
either immediately or at a future time, for example after the donor
becomes incapacitated. RBC Wealth Management identifies certain key
factors Canadians should take into account before appointing their
Your attorney's financial acumen. While no one assumes that a trusted attorney would manage his/her
money irresponsibly, if the person in mind is inexperienced in managing
finances, he or she may not be as ideal a choice as someone who has
financial experience or expertise.
Your attorney's location and ability to travel. An attorney needs to be able to communicate important and timely
decisions. Even with the ease of electronic communications, he or she
may be required to travel on short notice if an emergency arises
Your attorney's age and stage in life. Someone who is already of an advanced age today may not be healthy
when you need them to act for you. This person could also be managing a
busy career and family for the foreseeable future and may not have the
time to dedicate to diligently attend to affairs as may be required.
Your attorney's organizational skills. Not only will the attorney be responsible for the record keeping
pertaining to your POA, they may also have to manage their own POA. If
the attorney is responsible, there is a good chance he/she will be
equally responsible with yours.
Your attorney's potential for emotional bias. If your attorney is a relative, the person may have an emotional bias
that prevents him or her from carrying out your wishes or have
challenges when managing the expectations of other family members.
Also, if the attorney is a family member, he or she may be in a
potential conflict of interest if the spending for your care will
affect his or her potential inheritance.
About RBC Wealth Management Services
RBC Wealth Management - Canada, ranked number one in the industry, is
the country's only wealth manager that provides its clients with access
to a team of over 180 professionals who provide best-in-class wealth
management solutions. This team consists of highly experienced and
accredited lawyers, accountants, estate planners and tax specialists,
business owner specialists and financial planners who work with our
investment advisors, counsellors and private bankers to provide our
high net-worth clients with a superior wealth management experience.
About RBC Wealth Management
RBC Wealth Management is one of the world's top 10 largest wealth managers*. RBC Wealth
Management directly serves affluent, high net-worth and ultra-high
net-worth clients in Canada, the United States, Latin America, Europe,
the Middle East, Africa, and Asia with a full suite of banking,
investment, trust and other wealth management solutions. The business
also provides asset management products and services directly and
through RBC and third party distributors to institutional and
individual clients, through its RBC Global Asset Management business
(which includes BlueBay Asset Management). RBC Wealth Management has
more than C$604 billion of assets under administration, more than C$369
billion of assets under management and over 4,400 financial
consultants, advisors, private bankers, and trust officers.
*Scorpio Partnership Global Private Banking KPI Benchmark 2012. In the
United States, securities are offered through RBC Wealth Management, a
division of RBC Capital Markets, LLC, a wholly owned subsidiary of
Royal Bank of Canada. Member NYSE/FINRA/SIPC.
For further information:
Bev MacLean, RBC Corporate Communications, email@example.com,