Later in life children – bringing up new needs

If you have opted to start a family later in life or if you are the more mature partner in a blended family with younger children from your new union, you’ll want to make sure your children are properly cared for and financially secure regardless of what happens to you. That’s why there are certain financial and estate planning issues that you should address right away.

You need a new will

You need to revise your will to include the legacy you wish to leave to your newest family member(s). If your will is out-of-date your surviving spouse and/or your child may not get the share of your estate that you wish them to have. As well, if you do not have a valid will and your child is under the age of majority, the money your child inherits may be held or managed by provincial or territorial authorities until the child reaches the age of majority. He or she would receive your inheritance in one lump sum and may not be capable of managing his or her sudden wealth.

Structuring a will and estate planning are especially difficult for blended families – and, when not done correctly, it can inadvertently eliminate one or more children, or even one branch of your blended family, from any share in your estate. You should know, too, that getting remarried voids any previous wills (except sometimes in Québec ).

Name a guardian

One of the most important parts of your estate plan is recommending a guardian in your will who will take care of your child if you and your spouse are unable to do so. Think carefully about who you should recommend.

The court is not bound to appoint the guardian that you recommend in your will, and may appoint someone else if the court feels you have made a poor choice. So choose wisely – and be sure to talk it over with the person you nominate.

Insure your child’s future

You want to leave a sufficient estate for your child and life insurance can help you do that. As your beneficiary, your child will receive the proceeds of your policy, usually without a tax liability. But insurance rates go up with age and your health could also become an issue, perhaps preventing you from obtaining any kind of insurance coverage.

So act now. Without doubt, a later in life child is an enriching experience and by making the right decisions now, you will ensure he or she is financially and personally protected come what may. Your professional advisor can help you make those decisions and the many others that will keep your financial life growing along with your child.

John Scholl CLU (Chartered Life Underwriter),CGA, B. Mathematics,

Financial Consultant - Investors Group Financial Services Inc John is available at (905) 450-2891 X529

David Pylyp; Stan Gelman Lawyer Mississauga would be pleased to prepare new wills and Power of Attorney Assets Give him a call at 905 270 5110.

Power of Attorney, Wills and Estate Probate

One of my favorite people and I shared lunch today and the topic came around to procrastination. Stan told me about a presentation that he had done recently in the condo building where he resides. A few of the local residents had asked him to prepare a few words about wills, estates, probate and Power of Attorney.

Our conversation focused on the fact that so many people put these issues off until it is left in someone else's bailiwick to deal with.

One should have Powers of Attorney and a Will so that you can have your assets and health care looked after as you wish while you are alive and furthermore how your assets will be distributed after you pass away.

Wills, Power of Attorney, Estate Planning

It may not be the greatest dinner table topic; but so many people I meet are dealing with the unexpected loss due to accident or illness. Please prepare. Stan Gelman is available at 905 270 5110 for consultations.

Estate Planning - Living in Toronto

The essentials of estate planning – rule one: do it now

“In this world, nothing is certain but death and taxes.” The famous American, Benjamin Franklin, wrote those words over 200 years ago and they still ring true today. Most of us tend to avoid thinking about the end of our life and most – if not all – of us certainly do not enjoy paying taxes. But you should think ahead and establish an estate plan now. By clearly stating your wishes for how your legacy should be passed on, you will protect your family and reduce the taxes levied against your estate.

Here are the essentials of an estate plan:

• A Will is the foundation of any estate plan. It designates how your estate – money, property, insurance proceeds and other investments – should be distributed. If you die without a Will (i.e. intestate), provincial legislation will determine how your estate is distributed amongst your heirs.
• A Living Will provides direction for your care in the event of catastrophic illness or disability.
• An Enduring Power of Attorney (also called a Mandate in case of Incapacity in Québec) provides direction for how your property will be managed in the event of incapacity.
• An Executor (sometimes called a Personal Representative or in Québec, a liquidator) is the person named in your Will to settle your estate according to your documented wishes.
• A Guardian should be named in your will for your minor children.
• Liquid Assets are important to pay for taxes, debts, the costs of settling your estate and/or other obligations. If you do not anticipate that your estate will have sufficient liquid assets to pay these amounts, consideration should be given to purchasing insurance.
• A Trust can provide that part or all of your estate be held by a trustee until a beneficiary reaches a certain age. Trusts in your will can also be used to reduce taxes for the beneficiaries.
• Funeral Services can be prearranged to save your estate some money, avoid extra stress on your survivors, and ensure the service is according to your wishes.
• Financial Assets should be comprehensively listed in your records -- your bank accounts, insurance policies, investment accounts, and other financial information --and be sure your Executor and/or survivors know where to find them.
• Special Circumstances -- an estate plan becomes even more essential if you own a business, are divorced or part of a blended family, live in a common-law relationship, have disabled dependants, or are responsible for the care of elderly relatives.
• Revise as Required -- you should revise your estate plan following any major life event such as a marriage or divorce, birth of a child or grandchild, death of a spouse, heir or executor, property purchase or sale, change of residence (to a different province or country), or the onset of a serious illness or liability.

Creating an estate plan now avoids difficulties and costs later. To do it properly, you’ll need an estate lawyer and perhaps an accountant, along with your financial advisor who can ‘quarterback’ your estate planning team and keep everybody on track with your wishes for your legacy.

John Scholl B. Mathematics, CGA,

Consultant - Investors Group Financial Services Inc.

Phone: (905) 450-2891 X529 Toll Free: 1 (866) 799-2223 x529 Cell (416) 731-3660 Fax: (905) 450-9747