1. Crafting The Memory A brief look at estate planning… Welcome to Dave’s presentation on “Thoughts On Estate Planning” Dave Sharp, B.Sc.; CFP; EPC Certified Financial Planner Elder Planning Counsellor

2. What Is Estate Planning?

3. Estate Planning is ensuring your personal property… Is managed effectively during your life time And it fulfils your Estate wishes when you pass away Ensure the assets are distributed in an orderly fashion Ensure that taxes and fees are managed and minimized And assets are protected from unnecessary estate losses

4. Ensuring your loved ones… - Remain in healthy relationship - Are spared the emotional damage of “administrivia” -Your Passions -Your Priorities -Your Accomplishments -Your Love - Are given the ability to grieve in a timely manner - Are able to remember you as you would have wanted…

5. Bottom Line… …Putting together the pieces of your passing to properly frame your life and the legacy that you will leave. Estate Planning Is… …Loving your family enough to give them the gift of a fond farewell.

6. What Do I Need To Know In Order To Properly Prepare an Estate Plan? Wills Trusts Estate Freezes Bequests & Charitable Donations Life Insurance Proper Beneficiary Structuring Estate Bypass Strategies Income Integration and Sheltering Strategies Creditor and Privacy Protection And MORE!!!

7. What do you really need to consider? “Relational” Estate Planning Concepts 1.Properly Eliminating Probate, Estate, & Legal Fees while reducing “Administrivia” for your heirs 2.And other Unconventional Thinking Processes “Financial” Estate Planning Concepts 1.Organize, Organize, Organize

8. Top 6 Reasons For Conflict During Estate Settlements 1. Confusion/Dispute surrounding your wishes 2. Outsider Interference (those other than named heirs) 3. Early removal of items from an estate 4. Personality Conflicts 5. Unfair distribution of shared responsibilities 6. Unfair distribution of assets You can control items 1, 3, 5, & 6!

9. Equalization of Estate Assets????? Farmer Smith had a successful farming operation. He was setting up his Will after his wife passed away, and was wondering if his thoughts were being fair to his surviving children. What are your thoughts? John receives the farm valued at $500,000 Susan receives the cottage valued at $600,000 which has been in the family forever Ben receives the RRIF valued at $850,000 Each of the children would be responsible for the taxes arising from their inheritance!

10. Equalization of Estate Assets????? Let’s look at the tax implications involved and see if you still agree with your original answers. John receives the farm valued at $500,000 Because the family farm is not subject to any capital gains, John’s after- tax value still at $500,000 Susan receives the cottage valued at $600,000 which has been in the family forever In this case, we will assume that back in 1994, Mr. Smith took advantage of the Capital Gain Exemption and so assumed an adjusted cost base of $100k for the cottage. Thus, assuming minimal other taxable income, the after-tax value of the cottage was ~$480,000 so, not a lot of difference between John & Susan’s inheritance Ben receives the RRIF valued at $850,000 In this case, 100% of the RRIF is treated as taxable income (and assuming the highest marginal tax rate of 43%), the after tax value would be ~$484,500 which is still not a huge difference from John’s & Susan’s inheritance.

11. Organize, Organize, Organize!!!! 1.In most cases, there is a need to streamline your estate Consolidate your assets to make it easier 2.Create a THOROUGH record of your estate Put it in writing and make sure this info is readily available to your Executor/Executrix

12. Consider what you REALLY want to be passing on…. Your Wealth?Sure… But what about… Your Values… Your Passions… Your Strengths… Your Love… Your Accomplishments… Your wealth will be used, appreciated, then forgotten, why not plan for something lasting?

13. How? 1.A Charitable Legacy 2.A Family Legacy An estate planner can help sort out the details to craft the perfect legacy plan for you!

14. Who needs Estate Planning? Every person who needs/wants: to create an estate, conserve assets to distribute their assets in an orderly fashion: – As income for themselves and others during their lifetime, – To spouse, children and descendants after their death – To Charities as they see fit.

15. So, what is the solution? Speak to us about our expertise and how we can set up financial plans that will help you achieve your Estate Planning goals for the ones you truly love.