Experience Group » Estate Planning

Grandchildren & You

admin — Tue, 08 Jun 2010 19:04:37 +0000

Putting Some Aside For Your Grandchild(ren).
by Brett Millard, CFP
Thom & Associates Financial Planners Inc.

I’m often approached by new parents with a recurring question:

“Our child’s grandparents would like to start putting some money away on their behalf. What is the best way for them to do this?”

There are several investment vehicles this money can go into and each one can have an enormously positive impact on the child’s financial future. When started right from birth, these various investments have many years to grow and can often substantially or even completely cover future expenses that will arise.

The R.E.S.P. Gift

The first expense which we often recommend setting up an investment for, is the child’s post-secondary education. Registered Education Savings Plans grow surprisingly quickly due to the benefits of their tax advantaged status and the government grants that add a 20% bonus to your deposits. If you were to put as little as $25 per month into an RESP when your grandchild is born, they would have $13,000 set aside for their education by the time they reach 17 years of age. Depending on the education path that is chosen, a $100 per month contribution could fully fund a grandchild’s entire university education!

The Universal Life Gift

A second gift grandparents can provide is the creation and funding of a Universal Life policy for a child. This type of policy can be set up as early as 30 days after the child is born and has a couple of key benefits. It will provide the grandchild with very inexpensive insurance that can be transferred to their own name as an adult, regardless of future health condition and insurability. Additionally, with even a very small monthly contribution, the policy will grow to a very large value. A $25 per month investment into a $35, 000 face value UL policy would be fully paid up after 20 years. With no further investments in the child’s lifetime, the policy would have a face value of at least $160,000 at retirement as well as a $90,000 cash value at that time!

The Tax Free Savings Account Gift

The third option for a grandchild’s gift has been recently improved with the Canadian government’s creation of the Tax Free Savings Accounts. A straight cash savings accountcould be used in the child’s early adult stage of life to pay off remaining school costs, go on to graduate school or even put a down payment on their first home. Investing $25 per month into a TFSA would provide approximately $17,000 in this type of account at age 25, all of which can be accessed tax free!

It all adds up!

With the above three investment vehicles, these gifts can substantially improve a child’s financial future and give them an enormous head start in life. If each of a newborn child’s four grandparents were to contribute $25 / month into each of these three types of accounts, the child’s education would be completely paid for, they would have their retirement well funded and would have $68,000 set aside to purchase their first home!!

If it’s within the budget, wouldn’t we all like to have this kind of a head start in life?

This report was specifically written and submitted by Brett Millard, CFP of Thom & Associates Financial Planners Inc., Investia Financial Services (Kelowna, BC). It is presented as a general source of information only, and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide legal advice. Clients should discuss their situation with a certified consultant and seek advice based on their specific circumstances. Comments or questions – Brett Millard can be reached at (250) 863-6505 or by email brett@thomandassociates.com

Difficult Decisions

admin — Fri, 22 Jan 2010 03:41:27 +0000

Managing Your Money: Decisions You Should Make.

by Brian Dugaro
Investors Group Financial Services

Most people tend to avoid looking ahead to their end of days – and while that is certainly understandable – it can cause significant problems for you and for those you love.

To be certain that your legacy is passed on exactly as you wish and that your expectations for personal care are known at a time when you may not be able to make those determinations for yourself, there are certain decisions you should make now.

A comprehensive estate plan starts with your Will but should also include other elements. Among the most important are a Power of Attorney for property and a Power Of Attorney for personal care.

Here’s why.

Power Of Attorney For Property.

Your Will establishes who will receive your bequests after you die. It also includes the name of the person you have selected to be your executor (or personal representative) – the person who will be legally responsible for carrying out your wishes as set out in your Will.

But what happens if you become incapacitated prior to your death? Your Will has no effect in that case – so you need another form of protection and direction – and that’s what a power of attorney for property does.

You select your attorney for property (it can be the person you named as executor or someone else) who will act on your behalf in respect of your finances. The powers granted to an attorney for property vary according to your province/territory and the terms of the document. They generally include paying your bills, managing your real estate and other investments, filing your tax returns and paying your taxes, signing documents on your behalf, mortgaging or selling your home, and managing your accounts, safety deposit boxes and other banking needs.

Power Of Attorney For Personal Care

Sometimes called a health care proxy, a health care directive, or living Will, your power of attorney for personal care is your substitute decision-maker for your wishes regarding your future health or medical care including giving or refusing consent to specified kinds of treatment such as saying yes or no to life support treatment that would artificially sustain or prolong life.

Most provinces now have legislation allowing the designation of a power of attorney for personal care but not all provide that the decisions of the proxy are ‘binding’. Even in jurisdictions where the decisions of the proxy are binding, it can be overridden by certain circumstances such as medical or technological advances that render an instruction inappropriate.

You should draft your powers of attorney very carefully, in accordance with your precise wishes and provincial/territorial legislation. Include your lawyer in their preparation – and your family physician for your living will – and make your professional advisor a part of your team – the quarterback who will make sure all your estate planning strategies make sense for you

This report specifically written and published by Investors Group Financial Services Inc. (in Quebec, a financial services firm) is presented as a general source of information only, and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide legal advice. Clients should discuss their situation with their Consultant for advice based on their specific circumstances. ©2010 Investors Group Inc. Comments or questions – Brian Dugaro at Investors Group Financial Services (Nanaimo) – (250) 729-0904 Ext. 371or by email brian.dugaro@investorsgroup.com

‘WILL’ yours work?

admin — Thu, 21 Jan 2010 05:48:41 +0000

Do you have one?
by Brian Dugaro
Investors Group Financial Services

Good financial planning must include providing for your loved ones and ensuring they are taken care of after your death. It should also include taking the right steps to ensure that your wishes for your finances and medical treatment will be respected even if you become incapacitated.

Will Essentials.

The essential basis for all this is a valid, up-to-date Will that

Names your Executor (sometimes called a Personal Representative or in Québec, a liquidator) to take charge of your estate.
Ensures your legacy is passed on according to your wishes – if you die without a Will (i.e. intestate) your estate will be distributed according to provincial legislation, which may not be consistent with your intentions.
Makes suitable arrangements for minor children and other dependants, and in particular, name guardians for them.
Minimizes delays, costs and the complexities of passing on your estate.
Reduces taxes to the extent possible, in some cases by creating testamentary trusts for beneficiaries who are in higher tax brackets.

You should also create a Living Will and a Power of Attorney that designates person(s) of your choice to make financial and/or health-related decisions on your behalf should you become too ill to do so on your own.

When it comes to Wills, professional advice is well worth the cost.

It is not absolutely necessary to have a lawyer prepare your Will – but it is certainly recommended.

Generally speaking, the purchase of will kits and power of attorney kits at various retail stores or on line is not recommended, as it’s easy to make mistakes. A holograph Will is one prepared by you in your own handwriting and signed by you, without witnesses. Such a Will can raise many problems and should be avoided except in an emergency.

Review and Revise

You should review and revise your Will when:

there has been a major tax change;
your marital status has changed;
the marital status of your beneficiaries has changed;
you are expecting a child or have just had one;
a beneficiary dies or becomes disabled;
your business succession plan has changed;
you sell a legacy with a significant value or wish to substitute another legacy;
you move to a different province, territory or country;
your financial position changes significantly;
you want to change your Executor(s) or Guardian(s)

Wills become more complex if you own a business, are in a blended family, want to set up a trust, have specific bequest objectives, or want to structure your assets to minimize estate taxes and probate fees. That’s why it makes good sense to speak to your financial advisor about the best way to pass on your legacy.

This report specifically written and published by Investors Group Financial Services Inc. (in Quebec, a financial services firm) is presented as a general source of information only, and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide legal advice. Clients should discuss their situation with their Consultant for advice based on their specific circumstances. ©2010 Investors Group Inc. Comments or questions – Brian Dugaro at Investors Group Financial Services (Nanaimo) – (250) 729-0904 Ext. 371or by email brian.dugaro@investorsgroup.com

The Tax Planned Will

admin — Fri, 13 Nov 2009 21:54:23 +0000

Creating Tax Savings for Your Spouse and the Next Generation.
by Michael Danchuk, CFP & Richard Nash, CFP
Investors Group Inc.

Lawyers and notaries often recommend the creation of trusts within wills for reasons that do not relate to tax. Common scenarios include the management of property for young beneficiaries or the disabled, or for a spouse where there is a desire to preserve the capital for the next generation. While these are all valid reasons for the creation of trusts, the tax savings opportunities of testamentary trusts are often overlooked.

First a little background

A trust is a legal relationship under which a person, referred to in trust jargon as the settlor, gives up ownership of property and transfers control over the property to a trustee, or group of trustees, who manage the property for the benefit of other persons, called the beneficiaries. When a trust is referred to as a testamentary trust, it means control over the property was transferred to the trustees as a consequence of the death of the settlor. This is in contrast to an inter vivos trust, where the transfer of property is made during the life-time of the settlor. The terms of a testamentary trust are most commonly documented within the will of the settlor. However, outside of Quebec, a testamentary trust can also be created under the terms of an insurance beneficiary declaration made separate from the settlor’s will for the purpose of receiving proceeds payable under life insurance policies. The distinction between inter vivos trusts and testamentary trusts is important for reasons of taxation. While the undistributed annual income of an inter vivos trust is taxed at the top personal rate (top personal tax rates range from a low of 39% in Alberta to a high of 48.2% in Québec)*, testamentary trusts benefit from the same graduated rates of tax as individuals. The ability to create a separate taxpayer in the form of a trust, with access to its own graduated rates, is a significant tax planning opportunity.

Example of tax savings

Let’s first examine how a testamentary trust can save tax for a surviving spouse:

George is a retired businessman who earns an annual income of $50,000 from his non-registered investments. His spouse, Ellen, is a retired teacher who earns approximately the same amount as George each year from her pensions and registered retirement income fund (RRIF). Both Ellen and George are over the age of 65 and qualify for Old Age Security (OAS) and Canada Pension Plan (CPP)/Quebec Pension Plan (QPP). Their combined after-tax income is $99,345, calculated as follows:

Investment Income (George)	$50,000
Pension Income (Ellen)	$50,000
CPP/QPP ($10,313 each)	$20,626
Old Age Security ($5,903 each)	$11,806

Total Income

$132,433

Combined Tax

(Federal & Ontario)*

($31,901)

Combined After-Tax Income

$100,532

Now let’s assume that Ellen is a widow and, like most married Canadians, George had left his entire estate directly to his surviving spouse. In these circumstances Ellen’s after-tax income would be $75,664, calculated as follows:

Investment Income	$50,000
Pension Income	$50,000
CPP/QPP	$10,365
Old Age Security	$ 5,903

Total Income

$116,268

Combined Tax &

Repayment of OAS*

($39,935)

Combined After-Tax Income

$ 75,333

In comparison to their combined after-tax income while George was still living, Ellen’s after-tax income has dropped by $24,199. Only $5,903 of this reduction is accounted for by the loss of George’s Old Age Security. The rest is the result of two factors:

the increased taxes payable when all family income is reported in the hands of one spouse;

Ellen’s tax bill is more than $7,300 higher than their combined family tax bill when George was living.

In Canada, Old Age Security is reduced at the rate of 15% for every dollar of income in excess of $63,511*, resulting in a total repayment of Old Age Security when income levels reach approximately $103,000. When Old Age Security is taken into account, seniors with income in excess of $63,511 are subject to the highest rates of taxation in Canada. In this example, Ellen pays tax on her income between $63,511 and $103,000 at an effective marginal rate in excess of 49%.

What could George have done differently?

Let’s assume that, instead of leaving his estate directly to Ellen, George created a trust for Ellen under his Will. The trust would provide Ellen with a right to all income generated by the trust’s investments and the trustees would have the power to access the trust’s capital for Ellen’s benefit. Ellen could even be one of the trustees involved in the trust’s management.

So how would such an arrangement benefit Ellen? As a trust created under George’s Will would be a testamentary trust, an opportunity exists to income split. Ellen would receive all of the trust’s income to use as she sees fit, but an Income Tax Act election can be made allowing the trust to retain responsibility for reporting the income.

Let’s return to our example to highlight the benefit of such an income splitting strategy:

Investment Income (reported by Trust)	$50,000
Pension Income (reported by Ellen)	$50,000
CPP/QPP (reported by Ellen)	$10,365
Old Age Security	$ 5,903

Total Income

$116,268

Total Tax*

($28,433)

Combined After-Tax Income

$ 87,835

For Ellen, the tax savings would amount to $11,502 annually. Even after paying some additional fees for the preparation of a trust tax return, many would view the tax savings as significant. If the assets from George’s estate produced a higher level of income, the savings would be greater.

What about the next generation?

High tax bracket children can also benefit from this income splitting strategy. Receiving their inheritance indirectly through a testamentary trust can give a high tax bracket beneficiary the ability to generate a higher level of after-tax income. Separate trusts can be created under a parent’s will for each child and his or her respective family. Discretion is usually given to the trustees over the distribution of income among family members. Annual income can be distributed to the high-tax bracket beneficiary for his or her own use, but the income can be taxed at lower rates within the trust.

Alternatively, when income can be used to benefit a person with little or no income of their own (such as a beneficiary of school age or university age) it may be preferable to have the income reported in the hands of the beneficiary. This will allow for the utilization of the beneficiary’s basic personal tax credit, which shelters the first $9,039 of income from federal tax*.

The tax efficiency of a trust can be further enhanced if the trust’s investments produce “eligible” dividend income earned from Canadian corporations. Where trust income is used to assist a beneficiary with no other income, such a beneficiary can receive up to $66,420 in dividend income before having to pay federal income tax (although in most provinces some provincial tax will be payable beginning at lower income levels).

Who should consider the tax planned will?

Anyone who has accumulated wealth in the form of non-registered assets should consider this strategy. Such assets could include, but would not be limited to, real estate, stocks, bonds, mutual funds and shares in private corporations. Also take into consideration the proceeds of any life insurance policies that will be payable on death. Very often retired business owners and farmers are good candidates, but by no means is the strategy restricted by occupational background. From a tax standpoint, the decision to utilize a testamentary trust turns as much on the income that can be generated from the trust’s assets, as it does on the underlying value of the assets. If the potential beneficiary is a surviving spouse, the major limitation relates to Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs) and other forms of registered accounts. With these types of accounts, significant tax deferral will be lost if, on your death, the accounts are not transferred to your spouse in their registered form. In the event you have no surviving spouse, directing registered accounts through your will to a testamentary trust can still be good tax planning.

Final Steps.

To determine whether this strategy makes sense in your situation, you need to first arrive at a reasonable projection of the after-tax value of your estate and the income it can be expected to generate. With this information in hand, an estimate can be made of the potential tax savings that can be achieved for your heirs through a tax planned will. These type of projections are best done by your financial advisor in consultation with your accountant where necessary.

Please do not hesitate to contact us if you would like to discuss your particular situation and to determine how a “tax planned will” can assist your family.

This report specifically written and published by Investors Group Financial Services Inc. (in Quebec, a financial services firm) is presented as a general source of information only, and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide legal advice. Prospective investors should review the annual report, simplified prospectus, and annual information form of any fund carefully before making an investment decision. Clients should discuss their situation with their Consultant for advice based on their specific circumstances. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. ™Trademarks owned by IGM Financial Inc. and licensed to its subsidiary corporations. “The Tax Planned Will — Creating Tax Savings for Your Spouse and the Next Generation” ©2008 Investors Group Inc. (01/2008) MP1065 Comments or questions – Michael Dunchuck and/or Richard Nash can be reached at (604) 270-7700 or by email richard.nash@investorsgroup.com & Michael.Danchuk@investorsgroup.com
**All tax rates are as at December 31, 2007. All exemptions and benefits are projections for 2007.

Educating Grandkids!

admin — Tue, 06 Oct 2009 21:14:54 +0000

Will your grandchild be able to afford university?
submitted by Global Education Management Corporation

Pens, paper, binders, back-pack and of course new clothes — it must be back-to-school time and your grandchild is heading off to elementary school. From experience, you know that your grandchild will grow in a blink of an eye -just like your child did.

And in no time, your grandchild is ready to go to college and university. But post-secondary education costs are more that just some paper, binders and new clothes.

In fact, you’d be shocked to find out the new additional costs that your grandchild will need to pay. Gone are the days when working a summer job could pay for school or when parents could cover the cost of college or university out of pocket.

When your grandchild is ready to attend university, an average four-year Bachelor or Arts degree is expected to cost over 110,000*. This amount covers the increasing costs of tuition and education related expenses such as books, supplies and accommodations.

Although costs may vary by program, school and province, many of the same expenses will still apply to both college and university students across Canada.

Is your grandchild ready for the real cost of education?

As a concerned grandparent, you can help. Consider investing in an Educations Savings Plan for your grandchild such as the Global Educational Trust Plan (Global Plan).

When the Global Plan is registered†, your savings grow tax-deferred. The money is taxed only when your grandchild withdraws the funds to pay for tuition and education-related expenses. You can contribute up to a lifetime maximum of $50,000.

In addition, the Government of Canada offers additional funding such as the Canada Educations Savings Grant‡ (CESG) and Canada Learning Bond (CLB), which add up to $9,200 in extra savings.

For more information about government grants and saving for your grandchild’s Education Savings Plan, contact a financial professional today.

* “Education Cost Calculator”, CanLearn Website (www.canlean.ca). Assumes 3.0% annual inflation from 2007 to 2025 ‡ Subject to eligibility † The Global Plan is eligible for registration under section 146.1 of the Income Tax Act. Registering the Global Plan is subject to meeting any and all age, residency, Social Insurance Number provisions and other requirements of the Act. 02091 (091807) www.globalfinancial.ca — Every dream needs a Plan. This report prepared by Global Education Management Corporation, Global Educational Marketing Corporation, #101 4940 Canada Way Burnaby, B.C.V5G4K6 tel: 604.430.5475

Cottage Questions

admin — Thu, 16 Jul 2009 19:51:02 +0000

by Richard Nash CFP & Michael Danchuk CFP
Financial Consultants

Will it always be family time at your cottage? Like most Canadians, you probably bought that terrific vacation property as much for your family as for yourself — but keeping it in the family could be another story entirely.

It’s natural to assume that the family retreat you’ve enjoyed for so many years will simply be passed along to your kids and their kids to enjoy. But have you asked your adult children if that is really what they want? And if they do want to hang onto the family haven, have you taken the right steps to ensure your kids will be financially able to keep it in the family?

Here are a few of the things you should consider now so it will always be family time at your cottage.

Decisions, decisions — make them now!

Your adult children have always enjoyed your vacation property — but there’s no guarantee that will always be the case. Owning and maintaining a vacation property is a big responsibility and it’s not for everyone. That’s why you should talk with your children and find out who wants the responsibilities that accompany ownership, and who doesn’t.

For example, if you don’t make those decisions now, you could leave an equal share of your cottage property to some of your children who might want to sell the property and use the money for other things. If any of your children want to keep the cottage, but don’t have the money to buy their siblings out, this could result in the property being sold even though this is not your desire.

By talking it over now, you can make arrangements to ensure that the children who are interested in inheriting the property do so, while other assets are earmarked for your other children.

Taxes, taxes — plan to deal with them now!

Unless you’re passing assets to a spouse or common-law partner, when you die, you’re deemed to dispose of all your capital assets at fair market value.

If your vacation property has appreciated in value, there could be a significant capital gains tax liability. You may be able to claim the principal residence exemption on the property, but that exemption usually applies to only one property — and if you choose to use it on your city home, the gain on your vacation property will be subject to tax.

Tax Solutions

Another way to help minimize the capital gain on the asset is to keep track of all capital improvements made to the property by keeping the receipts of all material and labour costs that have been incurred.

One efficient way to cover these taxes — and other estate debts, for that matter — is with permanent life insurance. The death benefit is usually tax free, and can be used to cover your estate’s tax bill. Without this ready source of cash, your personal representative (i.e. your executor) may be forced to sell estate assets, including your vacation property, to pay taxes.

Time at the cottage — plan to share it now!

If your estate does have sufficient funds to pay the capital gains tax, and your heirs do choose to share your vacation property after the time of your death, then they should discuss what type of co-ownership agreement they want.

It will be very important for them to come to an understanding regarding what will happen if any of the co-owners die, divorce or become bankrupt.

They should also discuss how they will use the cottage (e.g. can they all use the cottage during the same weeks? Or will they divide the weeks during which they will have exclusive use?).

Another contentious topic can be maintenance – will they all contribute equal financial amounts, as well as completing equal number of “chores” and “who” will decide what maintenance is necessary? If one of the co-owners does not live close by, some co-owners may be forced to do more of the work associated with the cottage than others – by agreeing to responsibilities in advance and seeking the advice of a lawyer for a co-ownership agreement suitable to everyone, this can help to prevent and defuse arguments later.

Let us help coordinate your wishes for your vacation property with all other aspects of your financial and estate plan. And to avoid unexpected personal or tax implications for you, your beneficiaries, or your estate, it’s a good idea to discuss all of the options with your tax and legal advisors and of course, us.

This is specifically written and published by Investors Group and is intended as a general source of information only, and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide legal or fax advice. Clients should discuss their situation with their Consultant for advice based on their specific circumstances. ™Trademark owned by IGM Financial Inc. and licensed to its subsidiary corporations. “Will it always be family time at your cottage?” ©2008 Investors Group Inc. (03/2008) MP1018

To Plan or Not to Plan

admin — Tue, 02 Jun 2009 19:33:20 +0000

by Doug Gaetz
Delta Funeral Home.

There’s no question about it. Thinking about our own mortality is not something that’s easy for any of us. But facing up to reality and making the necessary preparations for our own funerals – planning logistics, coordinating providers, and handling all the other details – may well be one of the most selfless and loving acts we’ll ever perform.

After all, leaving your family with the tasks of making choices and negotiating prices at a time of great emotional strain can only add to their grief and sense of loss. It may also result in their making selections that are not only unwarranted but needlessly expensive as well.

Even if you live near your family in a close-knit community, the choices to be made among funeral homes, florists, and cemeteries can be overwhelming to your family. And if you’re a relative newcomer to your community, or without family members living nearby, arranging your own memorial celebration ahead of time is absolutely essential.

Consider the following example …

In a recent letter to a popular syndicated columnist, a reader cited the experience of a close friend to show how lack of prior planning can create unnecessary anguish and confusion.

After becoming widowed, the friend was invited and moved in with her son and his family on the other side of the country. When she eventually died in her new community, family members knew only that she wanted to be interred with her husband who was buried back in their hometown. They had no idea where her legal documents, such as her will, cemetery deed and insurance papers were filed.

As a result, there was considerable chaos involving lawyers, bankers, and insurance companies in two different provinces – all of which could have been avoided with proper planning. Even more painful for the family was they had no idea what kind of funeral she may have wanted – or even where it should be.

The message is clear: failing to plan ahead can make things difficult for your family at the very moment they’re most vulnerable – and force them into making decisions they’re unprepared for. By shopping ahead and planning for your own funeral, you’ll be contributing to a legacy that is certain to be appreciated and cherished by those you leave behind. It is, in a very real sense, the ultimate expression of your love.

Estate Planning 101

admin — Tue, 02 Jun 2009 03:39:54 +0000

by Murray Lott
Delta Law Office

“Well, it’s a relief to finally get THAT done!” That, plus a sigh, is the common reaction of people as they leave the office with their copies of freshly-signed wills. And yet it seems to take people forever to get around to “arranging their affairs”. Here is our simple approach to Estate Planning that meets the needs of most people.

JOINT AND MUTUAL WILLS

A husband and wife will usually leave their assets to each other, and then to their children. “Assets” are whatever you own, less what you owe, at your death, so you don’t need to list your belongings or worry if they change. Your executor – the person responsible for winding up your affairs – will usually be your spouse or a child or close friend. A lawyer or trust company can do this if you don’t have anyone you can rely on.

You can make specific bequests of cash or items to named people or charities. You can also prepare a memorandum of gifts to deal with valuable or household items. You can change that list any time without having to change your will or consult your lawyer.

POWER OF ATTORNEY

A Power of Attorney is commonly given to a spouse or child to manage your bank account and bills when you are no longer able to. You can have more than one, for example to your husband as long as he can do the job, and then to your child. Your original can be stored with your lawyer until it is required.

LIVING WILL

A Living Will expresses your wishes for a natural death. It provides that heroic measures not be used to keep you artificially alive, and that drugs be administered to relieve pain.

REGISTERING AND STORING YOUR WILL

A Wills Notice (not your actual will) is sent to the Wills Registry to record the date and location of your last will. Wills are commonly stored in a lawyer’s office or safety deposit box. Don’t keep your original will at home where it might be destroyed in a fire. Your executor should have a copy of your important papers.

TAX PLANNING

There are several simple strategies that can be used to minimize the taxes your estate will pay. A common technique is to put the ownership of your home into the joint names of you and your children while you are still alive. This means title to the house passes automatically to your children without the expense of going through probate. A simple Trust Agreement makes it clear that the house is still yours.

In the few cases where more sophisticated tax planning is involved, an accountant or insurance professional can be consulted.

FUNERAL PLANNING

Many people include a provision for cremation or other last wishes in their will. But the will may not be located or reviewed until well after the funeral. A letter directed to your loved ones, with a copy in the hands of your executor, is more likely to be carried out.

We recommend you consider funeral planning with a funeral home professional. You are the best person to make difficult decisions about how you want to be remembered, not your loved ones in a time of emotional stress. Also, pre-payment of funeral expenses avoids future price inflation.

That’s all there is to it. One meeting – at our office or your residence – is usually enough to make sure we understand your wishes. At a second meeting we will check the documents for errors, answer questions, and look after the formal process of signing the documents. Then you, too, can breathe that sigh of relief.