Executor & POA

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When I was 14, my father was diagnosed with cancer. The doctors gave him six months to live and six months later almost to the day he passed away. My mother was my father's power of attorney and she was spending 7:00 in the morning until 11 o'clock at night every day, Monday to Sunday at the hospital with him. So then fell to my siblings to do that. I remember distinctly my siblings coming over and going through the bills and writing checks. This isn't about whether or not you're capable, this isn't about whether or not you have some sort of expertise as a financial professional or anything like that, it comes down to how you're going to use probably one of the most scarce resources, all of us have individually as individuals have. And that's our time. And if I had to be my mother's power of attorney, I would rather spend the time, that time with her. And I think that's the freedom that you get with the service.

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We're dealing with baby boomers that upto the stage of retirement, that are caught in the sandwich generation. Still dealing with the care of their parents, also still dealing with their children. And the concern they have is just the time management for the most part.

The sandwich generation is real. It is absolutely real. We want to be able to step in when that need arises and be available for families, to help them through what is probably the most difficult situation they're ever going to have to deal with.

Being appointed as an attorney is a huge responsibility. Because you need to make financial decisions, and look after the financial assets of that individual throughout their lifetime.

One of the things that a lot of people don't realize is that they are taking responsibility. And they have to do it properly. They have to do it efficiently.

But we're here to help, I am going to be your contact. And so we are going to work together as a team. You choose what you'd like us to do and will do it and maybe there's certain things you want to take care of yourself certain aspects of the administration, maybe you want to look after the taxation, but you don't want to have to deal with the audit administration. The payment of bills, dealing with pension department, going to the various financial institutions to have the assets collected and transferred. The benefits in appointing us is that you have qualified professionals with the expertise, we have the resources to provide the accounting, to provide the investment management, to do the tax returns.

For the individuals who entrust us with the responsibility of acting on their behalf, it's giving them time to then go and invest with that family member or that friend. And to create those memories that 20 years later, you're going to look back on and say I'm really, really glad I did that.

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We all know the importance of regular health check-ups, but when was the last time you took a look at your Will or estate plan?

Is it overdue for a check-up?

Most legal professionals recommend reviewing your plan every 3 to 5 years, and any time you experience a major life event, such as:

• A marriage;
• The disability of a dependent; or
• The death of a beneficiary, spouse or executor, to name a few.

For example, a common misconception is that your assets will automatically pass to your surviving spouse in the event of your death. But, if you haven’t properly documented your wishes through a valid Will or beneficiary designations, you may be considered to have died “intestate”.

This means your assets will be administered under the intestate succession legislation for the province or territory where you live.

So, it’s possible your spouse may not receive all of your estate assets—even if this was your intention.

Protect your loved ones.

The need for tax-smart estate plan, has never been greater. With the massive baby boomer generation inheriting trillions of over the coming decades, and taxes on those inheritances likely to remain high. Here's some tips for creating your tax-smart estate plan. First of all, make sure your will is up to date, especially if there have been important changes in your life. Your will names your beneficiaries and your executor. Consider having an open discussion with your family, you may feel uncomfortable about doing this. But it can help your family understand your intentions, and what they might need to do. One of the things you may want to discuss with your family is your choice of executor.

It's an honor to be named an executor, but there are a lot of responsibilities. Make sure your chosen executor is comfortable with what they will have to do. And remember, you don't have to choose a family member. Especially if you have a complicated estate, it may make more sense to choose a professional executor. You may also want to discuss taking care of certain family members. Perhaps you have younger children or grandchildren that you want to provide for. You can leave them a bequest through a testamentary trust in your will, or you can create a family trust during your lifetime. Trusts have important tax advantages when they are properly structured. Let's assume your beneficiaries have no other income. For example, a minor child, they can earn about $10,000 of interest income tax free, every year on the assets you transfer into the trust.

Here's another way you can reduce the impact of taxes on your estate, with life insurance. Consider this, if you leave $300,000 in your RSP or riff when you pass away. Your estate may have to pay as much as nearly half of that in tax, that's nearly $150,000. Similarly, your estate may have to pay taxes on any capital gains on things like your investments, your cottage, and US property. With a life insurance policy, you can cover these taxes. It can be very cost effective because the insurance premiums are often just a fraction of the tax bill. As always, with insurance, it's most cost effective when you're younger and in good health. One last tip for creating a tax-smart estate, and it's important. Make sure you speak with a qualified legal professional first, before you put any estate planning strategies in place.