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This newsletter is courtesy of Terry Fay and RetirementByDesign.ca. Please remember that while strategies outlined within this newsletter may be appropriate for some investors, you should always consult a financial advisor to determine if they are appropriate for you.
Sincerely,
Terry
Hello
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Loss of Primary Income Provider
Earning income and providing for your family's needs are among the most important roles you take on in life. Many people insure their homes, their cars and personal belongings, but don't take the time to think about insuring what pays for these things their ability to earn income.
That's where life insurance fits in; although in many ways it's a misnamed financial product. It's not your life you are insuring, but your future earnings. It makes sense to insure the things you value and your family's future is one of them.
When a primary income provider dies, the emotional trauma is enough for the family to endure without financial hardship as well. You should ensure that you have enough money to pay off expenses that occur at death, such as:
- personal liabilities;
- final expenses;
- taxes (in particular, covering capital gains tax liabilities);
- an emergency fund for unforeseen expenses;
- an education
fund for your children; and,
a replacement for your future earnings.
Similarly, your future earnings could be greatly reduced or lost should you become disabled. Not only would your family have to worry about the above expenses, but also the cost of caring for you. Disability insurance is the obvious answer.
The advantages of insurance are that it can be tailored to meet your specific needs. At the same time, life insurance provides tax-free dollars for your heirs that may be shielded from creditors, probate fees and other costs of estate administration, ensuring both estate maximization and estate conservation.
The sooner you review your family's needs, the sooner you will own the right protection. For more information on protecting your family by insuring your future earnings, please contact my office.
All the best,
Terry
REDUCING
PROBATE FEES
by Douglas Gray, LL.B.
Assets of your estate that are passed on through your will and go through the probate process are subject to probate fees. Some provinces have a ceiling, and some don't, so check with a lawyer or trust company in your community as to the current status in your province. When an executor asks the court to confirm or validate the executor's right to deal with an estate, the executor applies for what is referred to as a "grant of probate". This permits the executor to deal with the assets of the estate. When this formal confirmation is made, the probate fees are normally due. If the executor did not go through this legal confirmation process, many people, including regulatory or government agencies and banks, could refuse to recognize the executor's authority. The reason for this is the concern that the will is invalid, or has been replaced by a more recent will. Even if no will exists, the courts must formally and legally confirm the authority of an administrator to administer the estate. The probate fee would still have to be paid in this situation.
RE: Proposed TAX LEGISLATION
Schedule a meeting with me to review the implications of the proposed income tax legislation now, not after it's in place. Let's be proactive together so we can reduce it's effect on your and your financial plan.
All you really need to know is that we are committed to helping our clients achieve financial security and peace of mind.
Our Mission: Enhancing peoples lives by creating a positive life vision and the money to support it through our unique approach to financial planning.
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