Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs) can be valuable tools for building retirement income—but they can also create significant tax implications at death if not thoughtfully planned. In Canada, when someone dies, the full value of their RRSP or RRIF is generally treated as income on their final tax return. This means the entire amount…
Most of us don’t expect to lose the ability to handle our own affairs — but illness, accidents, or the natural effects of aging can change that in an instant. A Power of Attorney (POA) is a legal tool that lets you appoint someone to make financial and legal decisions for you if you can’t do it yourself. It’s an…
The start of a new year is an ideal time to set the intention to organize your end-of-life plans. Preparing now can save your loved ones time, money, heartache, and disagreements later, and is kind to those you leave behind. Broadly, there are two areas requiring attention: your health care and body, and your earthly possessions and responsibilities. Two timelines…
If you’re asked to be an executor, ensure you understand what is requested before accepting. Consider the following: What is your health like? Your abilities? Do you have the skills needed to do this job? How complex is the estate? What is the value of the assets? The higher the value, the more potential for problems (but the higher your…
A new year is a great time to set an intention to “get your ducks in a row”. Being prepared makes a huge difference; be kind to those you leave behind. The effort you put in now can save others incalculable time, money, heartache, and disagreements later. In broad strokes, there are two categories that need your attention – your…
Upon death, life insurance provides a lump-sum payment, known as a death benefit, to the named beneficiary(s). Term life insurance generally covers a specific period of time, such as 10 or 20 years, while Permanent insurance, such as whole and universal life, provides lifetime coverage. It is generally not advisable to name your estate as the beneficiary of a life…
At our local Quadra Library, there is now a shelving unit of books dedicated to topics relating to caregiving and end-of-life. As you come through the entrance, turn immediately to the right and you will see it bside the magazines. Community members are invited to browse the titles. If you see one you’d like to borrow, jot down the date, book title, and…
In end-of-life planning, there are two main taxes to consider; probate tax and personal income tax. Probate, the subject of a previous article, is a court certification process which requires a list of your assets and their estimated value. The probate tax on estates with a value greater than $50,000 is currently 1.4% of this total value. Personal income tax is paid on your final…
A will is a legal document that leaves instructions about what the person making the will wants done with their estate and obligations after they die. Your estate is made up of the property and possessions, also known as the assets, that you own at your death (some exceptions are joint ownership and those with a designated beneficiary). With a…
A Representation Agreement Section 9 (RA9) is a legally enforceable document for authorizing someone—a Representative—to assist you or to act on your behalf for health and personal care matters. The RA9 covers decisions about living arrangements, lifestyle preferences, minor and major health care, and the choice of life support. The RA9 does not cover financial or legal affairs; for this you…