1. Estate Planning Seminar Ian Lewer Director Planned Giving Dalhousie University

2. Why did the chicken run across the road? Because his friend asked him to be his Executor

3. What is Estate Planning It’s taking time to figure out what you want to achieve It’s taking time to formally document your intentions It’s understanding how the ‘plan’ works It’s understanding how the ‘plan’ might change over time It’s a process…which evolves and changes…and often needs to be revisited and reviewed

4. Introduction Will’s & POA’s Estate Administration Executor duties and responsibilities Reporting Risk management Tax returns Red flags Various Assets and how they are treated Estate Planning

5. Will’s and POA’s What is a Will? What is a ‘living Will’? What is a POA?

6. Will All other wills are null and void My Executor (legal representative is….) Grant my Executor full power and authority Instruct Executor to pay taxes, debts and outstanding obligations Distribution of Estate Other formal powers

7. Estate Administration Executor duties and responsibilities Funeral arrangements Collect & Protect Reporting (penny by penny) Distribution and Tax returns

8. Estate Administration Reporting: Detailed reporting to beneficiaries Communication (reasonable and detailed) Probate (if required)

9. Estate Administration Probate…what is Probate? - Public document….why bother….do I have to? - $15.53 for every $1,000 (or part thereof) over $100,000 in NS RoT: 1.5% Example in NOVA SCOTIA Home$300,000 GIC’s$150,000 Other$ 25,000 TOTAL:$475,000 X 1.5%=$7,125

10. Estate Administration Risk Management Personal Liability Risk Estate Risk….someone challenging the distribution….family member being ‘left out’ or unfairly taken into consideration Asset Risk: What risks are associated with different assets? What steps should an Executor take to minimize risk? Investment Risk

11. Estate Administration Gift Types: General: I give John $5,000 and Rita $5,000 Specific: I give John my stamp collection, or I give John my RBC shares Residue: I give John 50% of my residue and Rita 50% of my residue What if a beneficiary dies before testator? Per Stirpes Gift not in existence upon death? Ademption (specific gift no longer exists) Insufficient funds exist? Abatement

12. Estate Administration Tax Returns Personal Tax Return & T3 Tax Return(s) Rights of Things? (unpaid income, declared dividends) Clearance Certificate Accrued interest on GIC’s and Bonds? What if the estate drags on? What if the deceased has not filed personal returns for prior years? What tax minimization strategies should an Executor be aware of?

13. Estate Administration Red Flags Executor is unwilling or unable to act What if an Executor is acting and then unable? Executor lives out of Province/Country Executor(s) don’t agree on an issue Dysfunctional family dynamics Multiple Beneficiaries Potential known challenges

14. Treatment of Various Assets Ownership Sole ownership Joint with Right of Survivorship (JWROS) Tenants in Common Registered Accounts (Tax issues???) RRSP/RRIF (beneficiary designation…under 18) RESP TFSA

15. Treatment of Various Assets Life Insurance Real Estate: (locks, insurance, theft, maintenance) Primary Residence Cottage Land in Cape Breton Rental Properties (RED FLAG) Cars/Boats/Recreational Vehicles

16. Treatment of Various Assets Guns: Registration….are they secure? Food in the garbage from the night before? The ‘family’ heirlooms…who gets what….what wants what? The small things that often cause great emotional stress

17. Estate Planning Taking care of loved ones Tax minimization strategies Creating a Legacy:Charitable Giving Provide your Executor with the authority to gift publicly traded shares ‘in-kind’ 100% of your taxable in year of death and prior year