Protecting your estate Welcome!

Resistance to estate planning little personal benefit difficulty acknowledging mortality fail to recognize magnitude of tax liabilities underestimate how large their estates will become feel it’s too late or it’s too expensive

We’ll discuss... wills, power of attorney, executors tax issues survivor needs short-term planning long-term planning

Wills A will provides: 1.security of knowing your possessions will be handled the way you wish after you die 2.guardianship of your children 3.the opportunity to appoint the person you want to manage your estate 4.arrangements for inheritance - who, what and how

Preparing a will a will tells people in charge of your assets how to distribute them if you die without a will, the courts step in keep your will in a safe place

Living wills What is a living will? A living will states how you want to be treated if you become incapacitated by illness, injury or old age.

Keep your will current review your will as changes in life occur: –births, death, marriage, divorce, etc. if the change is minor, use a codicil If the change is major, revoke the old will and draw up a new one marriage and divorce can revoke a will

General guideline... A will should be reviewed every three to five years.

Executor What is an executor? An executor is someone you select to carry out the instructions in your will.

Appointing an executor being an executor is a big responsibility choose someone who is trustworthy, with a good business sense include in your will the provision allowing the executor to seek professional advice

Power of attorney There are 2 types of power of attorney: Your power of attorney’s role is complete at death. Property: Makes financial decisions on your behalf Personal Care: Takes care of your healthcare needs

Real life story

Taxes at death executor must file a tax return (Jan. 1 st of year of death to date of death) taxes to be aware of tax minimization using spousal RRSP

Immediate cash needs funeral expenses lawyer/executor fees probate fees mortgage or property rental credit cards debt payment special bequests buy/sell agreement emergency funds

Liquid resources cash assets chequing and savings money market funds GICs, Canada Savings Bonds life insurance

Funding long term needs government assistance employee pension plan personal assets survivor’s income

Survivor needs summary immediate cash needs + future income needs - funds available = shortfall/surplus

Insurance solutions Life insurance: term permanent universal life Health insurance: long term care critical illness disability

Term insurance Features: coverage for a limited period of time (i.e. 1, 5, 10, 20 years) premiums start low and increase with term and age at renewal no cash value Often used to: protect your mortgage cover a personal or business loan protect a key person or buy/sell situation

Permanent insurance Provides: lifetime coverage level premiums cash value with option to pay up premiums Often used for: long term needs final expenses estate conservation

Universal life permanent life insurance policy with a cash value and life insurance components it’s flexible –you can add cash when you have it or withdraw cash when you need it growth of the cash value is tax advantaged

Critical illness protection living benefit lump sum payment based on survival payable to you, not your dependents you determine how the payment will be used

Long term care protection You qualify to receive benefits when you are unable to perform 2 of the following daily routines: 1.bathing 2.toileting 3.transferring position 4.feeding 5.dressing

Disability protection you have some disability protection through CPP/QPP and possibly through a group plan continual medical care in your home will likely require more funding Experts recommend you have disability coverage that equals 60% of your pre- disability income.

Summary having a will keeping your will current creating a power of attorney implication of taxes at death short-term and long-term financial needs Today we've looked at the importance of:

Next steps questions & answers putting your plan into action how I can help feedback forms Thank you for coming!