Helping a parent downsize in Waterloo Region

The parent's wishes come first, and a move goes better when they lead it. Your role may be organizer, driver, note-taker or decision-maker, depending on what they want and what is legally in place. Introductions from Waterloo Downsizing go to agents on the operating team at eXp Realty, so this is not a search of the whole market.

This guide is general information, not legal, tax or financial advice. Powers of attorney, capacity, estates and tax reporting need a lawyer licensed in Ontario and an accountant.

Powers of attorney for property and personal care

The Government of Ontario explains on its power of attorney page that there are two types: one for personal care, which covers health care and housing, and one for property, which covers finances. The person making the document must be mentally capable. The age is 18 for a property document and 16 for personal care. The page says you can make one yourself for free or have a lawyer do it, and it links to a free kit.

If your parent is capable today, this is the most useful conversation to have. A document made while they can choose their own attorney is easier to rely on than a scramble later. Ask a lawyer whether the existing documents, if any, suit a move and a sale.

Who can sign a listing or a sale

This is a lawyer question. Whether an attorney under a power of attorney can sign a listing, an agreement of purchase and sale or closing documents depends on the document, whether it is in effect, and the family's circumstances. Do not sign anything for a parent on the strength of a general belief. Bring the document, any capacity concerns and the proposed timeline to a lawyer licensed in Ontario first.

If your parent lacks capacity and has no document, the Public Guardian and Trustee makes financial decisions for adults found mentally incapable and, in some cases, acts as substitute decision-maker for treatment or long-term care admission. Its line is 1-800-891-0504 (TTY 1-833-813-5696). A lawyer can explain which route fits.

The Law Society Referral Service lists a phone line of 1-855-947-5255 on the Government of Ontario's seniors guide legal page.

Working with an agent: the RECO Information Guide

The Real Estate Council of Ontario (RECO) says its Information Guide must be given to a buyer or seller before services or assistance are provided. It explains the duties an agent owes a client, such as loyalty, disclosure and confidentiality, and the difference between brokerage and designated representation. You can check an agent at the RECO registrant search. Read the guide with your parent. See working with a real estate agent in Ontario for more.

Starting the conversation

It can feel like taking something away, so it is easy to put off. It often goes better framed as a set of choices that your parent makes with information. Offer to visit a few places together, to sit in on a call with a lawyer or to make a list of what the current home asks of them each week. Ask what they would miss, which rooms they use and what they worry about. Write the answers down, and share them with any siblings so decisions are made from the same facts.

If you see signs that a parent is being pressured, or that money or property is being taken, the Seniors Safety Line listed below is a place to call for confidential support. Keep notes about who said what and when. If your parent has hired or is considering hiring someone to help, ask for the terms in writing and read them together.

Retirement homes, long-term care and life lease

These are different things, and they get mixed up.

• Retirement homes are regulated under the Retirement Homes Act and licensed by the Retirement Homes Regulatory Authority (RHRA), which keeps a public retirement home database searchable by name or address, with licence status, size, care services and enforcement history. RHRA's line is 1-855-275-7472. You deal with each home directly. Ask for fees and care levels in writing.
• Long-term care applications go through Ontario Health atHome, at 1-833-515-1234. Its Waterloo Wellington page lists local offices and describes how to start. The Region of Waterloo also lists Sunnyside Home and other seniors and long-term care services.
• Life lease is an ownership-like arrangement. The Government of Ontario says no legislation specifically regulates life lease housing and that contract law governs. It also says sponsors can typically end occupancy on 30 days' notice if a resident cannot live independently. Get independent legal advice before signing. See condo, townhouse, bungalow or life lease and the adult lifestyle communities page.

A move to a retirement home or a life lease affects what happens to the sale of the house, so line up the timing with your lawyer and your agent. The buy first or sell first guide covers the sequencing question.

Move managers

Some businesses in the Region help older adults and their families plan and carry out a move. We list them neutrally and do not endorse any of them. Check references, get written quotes and ask what is included.

• Tailored Transitions, Waterloo, describes senior moving services including move management, downsizing, packing and unpacking, estate support and settling in. Phone 226-887-8722.
• Senior's Move describes floor planning, rightsizing and decluttering, full-service moving, packing, estate cleanouts and donation removal in Kitchener-Waterloo Region and nearby areas. Its site states a certification with the National Association of Senior and Specialty Move Managers. Phone 519-841-4914.
• ONESource Moving Solutions, Kitchener, describes senior moving, downsizing, organizing, estate cleanouts and home staging. It is also a moving company. Phone 226-505-5150.

Moving companies are not provincially licensed in Ontario. The province's hiring a mover page advises checking references and the Consumer Beware List and getting a written contract. See moving day in Waterloo Region.

Clearing the house

Allow more time than you expect, and let your parent decide what stays. A few verified options:

• Habitat for Humanity Waterloo Region ReStore (Waterloo and Cambridge) takes furniture, appliances and building materials, and offers pickup by online request for larger donations. It lists items it does not accept, so read its donation page.
• Worth a Second Look, a project of The Working Centre in Kitchener, takes furniture, housewares, linens, books and more. Its page says it may be able to pick up large donations.
• MCC Thrift runs shops in Kitchener, New Hamburg and Elmira, and accepts furniture at select locations. See its donation page before you go.
• KelsoBid runs online auctions for estate and downsizing sales. See its website.
• The Region collects bulky items once a month with item limits. Its bulky items page has the rules, and the Region's household hazardous waste page covers paint, batteries and medications.

The CRA says individuals must keep books, records and supporting documents for six years from the end of the last tax year they relate to, so sort papers before shredding. Our guide to estate sales, consignment and donation goes further.

Support for your parent and for you

• Seniors Safety Line: 24/7 Ontario helpline for seniors experiencing abuse, neglect or distress, and for caregivers. 1-866-299-1011, TTY 1-866-299-0008.
• Alzheimer Society of Waterloo Wellington: counselling, programs and respite for people living with dementia and care partners. Its site lists offices in Kitchener (519-742-1422) and Cambridge (519-650-1628).
• Ontario Health atHome and Community Support Connections: home care, meals and community support. See aging in place or downsizing.
• 211 Ontario: a free helpline to social services and community supports.

Estate administration tax in brief

If your parent dies and the estate needs a certificate to be administered, Ontario's Estate Administration Tax may apply. The province's page says there is no tax if the estate is $50,000 or less. Above that it is $15 per $1,000, with the value rounded up. Real estate is counted net of any mortgage or lien at its value at death. Jointly held assets passing by survivorship, and registered plans with a named beneficiary, are excluded. Whether it applies, and how, is a question for the estate lawyer.

Reporting the sale of a parent's home

The CRA's principal residence page says that since 2016 the exemption is allowed only if the sale and designation are reported on the return, on Schedule 3 and Form T2091(IND), even when the gain is fully exempt. It also says a family unit can designate only one property per year, and that changing a home to a rental or other use can trigger a deemed sale. If your parent owned a second property, or has died, the picture is different, and the CRA's capital gains guide lists the death of an owner as a deemed disposition. An accountant should prepare the return. Other costs and taxes are on Costs and Taxes.

Where to start

• Ask your parent what they want, and write it down together.
• Find out which powers of attorney exist, and see a lawyer before anything is signed.
• Check housing options against care needs, using the RHRA register and Ontario Health atHome.
• Compare areas on the neighbourhood guides, such as Waterloo and Kitchener, and use the calculator.
• Read the step-by-step plan and the resources page.

When your parent is ready for a conversation with an agent, you can ask to be introduced.