Seniors & veterans will still get cheques despite Canada Post lockout

Global News is reporting that on Monday, June 20, there will be delivery of government cheques including CPP, OAS, Veteran's Affairs, tax benefit cheques etc. Click here for details. This is definitely good news for those living on limited incomes who really can't sit out a strike or lockout waiting for their money.

What federal benefits are available to the family of a deceased person?

An executor should maximize the value of the estate he or she is working on by applying for all federal government benefits that are available. Family members, with or without the help of the executor, may want to apply for other benefits that are available to them. Here is a list of benefits available from the Canadian government. Not every estate is eligible for every type of benefit, as that will depend on the circumstances of each estate:

1. CPP Death Benefit. A one-time, lump-sum payment of up to $2,500. Paid in order of priority to the estate, or the person paying for the funeral, or the spouse, or the next of kin. Click here for more info.

2. Survivor Allowance. A monthly benefit for a low income spouse between the ages of 60 and 64. Click the link under #1 for more information about eligibility and amounts.

3. Survivor Benefit. A monthly pension that can be paid either to a legal/common law spouse, or the deceased's children under 18, or children between 18 and 25 who are in school. Click here for more information.

4. Veteran's Affairs Death Benefit. Lump sum of up to $267,000 paid to the spouse or children of a Canadian Forces member who died in service or of injuries sustained in service. Click here for more info.

5. Last Post Fund. This non-profit program provides funeral, burial and a military gravemarker for the family of a Canadian Forces who died in service. Click here for more info.

6. International Survivor Benefit. If a deceased person worked or lived in another country, his or her estate might be entitled to a death benefit from that country. To find out more (you can select the country from a drop-down list) click here.

Most funeral homes give their customers the forms to apply for the CPP Death Benefit, but most do not provide the forms for the other benefits. Using the links I've provided, you will be able to download forms. If you don't want to do that, you can go into any federal government service office and pick one up.

What is informal trusteeship?

Informal trusteeship is a practical, low-cost way of putting an individual in charge of handling finances for a person who doesn't have the mental capacity to deal with his or her own finances. It's suitable for a person who doesn't have much in the way of assets, but does have income from a government pension or program.

For example, an elderly person who has very few assets but receives CPP and OAS benefits might need an informal trustee just to deal with those benefits. The elderly person doesn't have real estate or investments to be managed so doesn't really need a full court-appointed trustee, and would have trouble affording that. The elderly person just needs someone to help with receiving the government benefits and paying the bills with the benefits.

The federal government programs that allow for informal trusteeship are Canada Pension Plan (CPP), Old Age Security (OAS) and Department of Veteran's Affairs. You would have to contact each one separately. In Alberta, the provincial programs that allow for informal trusteeship are Assured Income for Severely Handicapped (AISH), Alberta Seniors Benefit, and Employment & Immigration. Other provinces allow informal trusteeship for their programs that are similar to these Alberta programs.

Putting an informal trusteeship into place is nothing like putting a court-appointed trusteeship into place. A court application is not required and there is no cost involved. The arrangement is put into place by contacting the government program in question and filling in their requested documents.

However, the responsibilities of the trustee put in charge are very much the same as they apply to the income stream that the trustee manages. The trustee is still managing money on behalf of another person and must act in the best interest of that person. For example, a person who is made an informal trustee may not use the money for his or her own purposes and may not make loans to him/herself with it.

It's important for anyone who is, or is planning to be, an informal trustee to understand the limitations of his or her authority. He or she can only deal with the benefit paid by the government department that has appointed him or her. An informal trustee CANNOT:
- sell the elderly person's home or car
- look after any investments
- look after any bank accounts except the one that receives the benefits
- handle any sums of money (e.g. inheritance, gift, lottery winnings, insurance pay-out) that are payable to the elderly person
- sell or give away the elderly person's personal and household belongings
- sign any contracts on behalf of the elderly person.