POAs looking to open a Segregated Fund contract comes up nearly on a daily basis.
Legally speaking a POA cannot influence the estate, but there are exceptions (more details below).
If we’re transferring assets from an existing Segregated Fund contract, a POA can request the beneficiaries to be matched for a new BMO Contract on an exception basis.
If you have a case like this, please reach out to me or your local GAM team to ensure the transfer can be accommodated.
What can a POA do?
- A POA can open and sign an application
- Beneficiary must be “the estate of”, unless we’re mirroring and transferring an existing Seg contract
- Beneficiary must be “the estate of”, unless we’re mirroring and transferring an existing Seg contract
- A POA can make transactions on behalf of the owner
What can’t a POA do?
- Make any “testamentary dispositions”
- This is a fancy way of saying influence the outcome of the estate
- They cannot make or change any new or additional beneficiary designations
- They cannot name or change a successor owner or successor annuitant
- They cannot make or change any new or additional beneficiary designations
- This is the law, not BMO policy
- This is a fancy way of saying influence the outcome of the estate
But what if….?
- We’re mirroring an existing beneficiary designation from a Seg contract transfer- Allowed
- We can mirror existing beneficiary designations as long we have proof from the relinquishing institution
- Please speak with me or your GAM team for additional information
- We can mirror existing beneficiary designations as long we have proof from the relinquishing institution
- The owner is signing and not the POA. Can I name a beneficiary then?- Allowed
- If the owner is of sound mind, signing the application, and then adding a POA we can accept the beneficiary designation
- If the owner is of sound mind, signing the application, and then adding a POA we can accept the beneficiary designation
- They’re naming beneficiaries other than themselves and not mirroring an existing contract?- Not Allowed
- No beneficiary designations are allowed, end stop
- No beneficiary designations are allowed, end stop
- They’re mirroring a Will?- Not Allowed
- We can’t prove provenance or validity of the will
- We can’t prove provenance or validity of the will
Market Snapshot:
- Equity markets dipped this week alongside some mixed earnings results and decent overall economic data flow.
- The S&P 500 dipped 0.5%, with Technology and Industrials down, while Energy and Utilities outperformed on the week.
- Meantime, the TSX gave back 0.2% with weakness in Industrials and Utilities, along with choppy post-earnings action among the major banks.
Market Commentary: