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Planning Ahead- Estate Planning Basics
 

Planning Ahead- Estate Planning Basics

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Get organized before you're not around to do it!

Get organized before you're not around to do it!

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    Planning Ahead- Estate Planning Basics Planning Ahead- Estate Planning Basics Presentation Transcript

    • * Everyone gets organized at some point, they just might not be around for it. PLANNING AHEAD * ESTATE PLANNING BASICS E. Susan Elliott, LSM, LL.D., B. Comm. (Hons.)
      • If you have no Will or Power of Attorney then:
        • Your assets go to your “nearest relatives”
        • The Province of Ontario may take over your affairs
        • It increases the likelihood of family fighting and paying lawyers to resolve issues
      • YOU LIKE TO PAY TAXES AND FEES
      • YOU TRUST THE GOVERNMENT TO LOOK AFTER IT FOR YOU
      • YOUR FAMILY ALWAYS GETS ALONG
      • YOU’LL GET TO IT WHEN YOU’RE OLD ENOUGH
      • YOU WILL LIVE FOREVER
      • THOUGHTFUL, UP TO DATE SET OF DOCUMENTS
      • CAN INCLUDE ANY OR ALL OF:
        • A WILL OR, MULTIPLE WILLS
        • A POWER OF ATTORNEY FOR PERSONAL CARE
        • A CONTINUING POWER OF ATTORNEY FOR PROPERTY
        • A “LIVING WILL” or ADVANCED HEALTH CARE DIRECTIVE
        • AN INTER VIVOS TRUST
        • A TESTAMENTARY TRUST
        • AN ALTER EGO TRUST
        • DESIGNATED BENEFICIARIES
        • JOINT OWNERSHIP
        • LIFE INSURANCE
      • FINAL INSTRUCTIONS TO FAMILY & FRIENDS
      • APPOINTS SOMEONE TO ADMINISTER YOUR ESTATE:
          • pay bills, including taxes, funeral etc.
          • distribute assets as specified
      • ONLY COUNTS WHEN YOU ARE DEAD
          • is a “living document”
      • SHOULD BE CLEAR
          • it’s too late to spell it out after you die
      • APPOINTS A “SUBSTITUTE DECISION-MAKER”
        • FOR “PROPERTY” – ALL YOUR ASSETS or
        • FOR PERSONAL CARE – MEDICAL & END OF LIFE
      • MUST BE SOMEONE YOU TRUST WITH:
        • YOUR LIFE
        • ALL YOUR WORDLY GOODS
      • OFTEN WISE TO APPOINT JOINT ATTORNEYS and, ALWAYS HAVE BACKUP ATTORNEYS
      • CAN BE AMENDED OR REVOKED AT ANY TIME
      • A PERSON TRANSFERS PROPERTY TO ANOTHER TO HOLD FOR THE USE & BENEFIT OF OTHERS
      • CAN BE DONE WHILE ALIVE OR IN A WILL
      • CAN HAVE CERTAIN TAX ADVANTAGES BUT ALSO COULD HAVE DISADVANTAGES
      • PROVIDES PRIVACY AND FLEXIBILITY
      • CAN REPLACE MOST OTHER ESTATE PLANNING DOCUMENTS
      • SPOUSE OR DEPENDANTS HAVE RIGHTS
        • CAN INCLUDE CURRENT and FORMER SPOUSE
        • CAN INCLUDE BUSINESS PARTNERS
        • CAN INCLUDE ADULT CHILDREN
      • THE CLAIMS CAN COMPETE WITH EACH OTHER
      • IF YOU HAVE NO WILL THE CLAIMS COULD BE HIGHER THAN IF YOU HAVE A WILL
      • DISABLED ADULT CHILDREN
        • REQUIRE A “HENSON TRUST” IF ON ODSP
      • “ SPENDTHRIFT” BENEFICIARIES
        • USUALLY HAVE A SPECIAL TRUST IN THE WILL
      • MINORS
        • WILL INHERIT AT AGE 18 UNLESS DEFERRED
        • NEED TO HAVE A CONTIGENCY PLAN
      • 2 ND (or 3 RD or 4 TH ) MARRIAGES
        • BLENDED FAMILIES MAY NEED SPECIAL PROVISIONS
      • COTTAGES
        • VERY DIFFICULT – SENTIMENTAL vs. PRACTICAL
      • ASSETS IN OTHER COUNTRIES
        • TIME SHARES
        • BANK ACCOUNTS
        • REAL ESTATE
      • PRIVATE CORPORATIONS
        • CAN HAVE A SEPARATE WILL
      • PERSONAL POSSESSIONS
        • SHOULD BE REVIEWED AND “LISTED” IF IMPORTANT
      • CAPITAL GAINS TAX
        • DEEMED DISPOSITION AT DEATH TRIGGERS TAX
        • HARD TO AVOID OTHER THAN SPOUSAL ROLL-OVER
        • APPLIES TO COTTAGES and INVESTMENTS
      • RRIFs/RRSPs
        • BALANCE IS INCLUDED IN INCOME AT DEATH
        • TAX-FREE SPOUSAL ROLL-OVER
      • CHARITABLE BEQUESTS
        • CAN BE A WIN-WIN AND REDUCE TAXES
      • LIFE INSURANCE
        • CAN PAY TAXES AND AVOID A SALE OF THE ASSET
      • About 1.5% of your estate
      • Are payable if your Will goes to probate or,
      • If you have NO WILL and die intestate
        • Paid on all assets passing through your Will or estate
      • Can be minimized by:
        • Joint assets
        • Designated beneficiaries
        • Trusts ( inter vivos, alter ego )
      • DECIDE WHO WILL BE IN CHARGE OF WHAT
      • THINK ABOUT ALTERNATIVES OR BACKUPS
      • BRING A LIST OF ALL MAJOR ASSETS:
        • INCLUDE OWNERSHIP OR REGISTRATION DETAILS
        • IF CAPITAL GAIN OR LOSS KNOW THE VALUES
      • INVOLVE FAMILY MEMBERS IN THE PLANNING
      • CONSULT YOUR FINANCIAL ADVISOR and ACCOUNTANT AS WELL AS YOUR LAWYER
      • DON’T PROCRASTINATE, START SOMEWHERE!
    • Tel. 613-544-1330 Fax 613-547-4538 Email: [email_address]