By Presented by Lawton Partners -Laurianne Osmak, CLU,CHS Financial Planner -Darcie Doell, Financial Advisor

Build Something Great

Estate Planning for Retirees & Mature Families

Aug 8, 2019 | 8:57 AM

How do you start the conversation with your family when you are reaching that time in your life to move away from the daily business or work life?

Once your children are grown and have been on their own, they should understand better how to progress with these important life decisions. So, the best advice is to be open and frank with the conversation. Here are some helpful tips for approaching the subject.

The kids have grown up and they’re adults now and the dependency on us as parents has waned. When I think about estate planning for retirees and mature families vs. younger families, there are certainly several different issues that arise your family dynamics become increasingly important.

The graphic checklist below will help guide you through the questions you need to address and how to implement the actions or tools needed to proceed in a manner that is fair and equitable for all. (see the graphic attached)

For your adult children:

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Equitable vs Equal. What’s considered to be fair may not necessarily be equal. ex. Should the daughter that’s been working in the family business for 10 years receive the same shares as the son who hasn’t worked in the family business at all?

Are your adult children responsible enough to handle the inheritance or would the windfall send them on a spending spree? To broach this subject, you need to be open and honest through conversation with parents and kids so context can be provided behind the decisions, this way there should be no surprises and allows the adult children to express their interests and concerns.

To accomplish this, facilitate a family meeting with both generations, this will help promote ongoing family unity after death and decrease the chances of resentment later.

Assets/Liabilities

What are your assets? First you need to compile a detailed list of your assets such as:

your home, family business, real estate, investments- non-registered, TFSA, RRSP, RDSP, RESP, company pension plans, insurance policies, property, additional revenue sources, etc.

What are your liabilities? Create a detailed list of your liabilities such as:

mortgage, loans (personal, student, car), lines of credit, credit cards, and other loans (store credit card, utility etc.)

Understand your assets; the ownership type (joint, tenants in common, sole etc.), list who the beneficiaries are for your assets. Understand your liabilities; are there any co-signers, pre-payment penalties, payout options upon death, etc.?

Tools:

Do you have a Will? Be sure to assign an executor.

It is a good is idea to always choose two qualified people for each position and communicate with them details of your plan. Be sure to provide specific instructions for distribution of assets.

Taxes and Probate

What are the costs or impacts of taxes and probate?

Tax is accrued on any income earned from Jan 1 to date of death PLUS many of the assets you own are to be consider sold on the day you die resulting in additional tax implications. Probate fees vary by province and are calculated based on the size of your estate. Not all assets in your estate are included or treated equally.

Tools to Achieve the Outcome for Taxes and Probate

You can consider the use of (living or inter vivos) trusts or the use of an estate freeze if you wish to gift while you’re living.

Once you determine the amount of taxes, probate, debt, final expenses and gifts required, review your life insurance coverage to see if it meets your needs or if there’s a shortfall.

Execution: It’s good to go through this but you have got to get it done. Besides doing it yourself, here’s a list of the individuals that can help:

* Financial Planner/Advisor (CFP)

* Estate Planning Specialist

* Insurance Specialist

* Lawyer

* Accountant/Tax Specialist

* Chartered Life Underwriter (CLU)

* Chartered Executor Advisor (CEA)

There are unique situations in many families and things can get complicated so please refer to this when you feel it’s applicable.

For more detailed explanation of this graphic and how we can assist in planning for your future financial freedom or for other insurance products such as critical illness or disability insurance contact Lawton Partners 306-922-2020 https://patweir.ca/

Presented by Lawton Partners

-Laurianne Osmak, CLU,CHS Financial Planner

-Darcie Doell, Financial Advisor