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There are so many options designed to help you to use a portion of your estate to benefit a good cause when you pass away. The estate planning process helps you to ensure that your estate is distributed as per your wishes and in the most tax efficient way as possible, but legacy planning goes further than this and aims to involve your family and loved ones in your plans to make a difference according to your personal values. The input of your family in this process should not be underestimated – they play a critical part in supporting the process to make your wishes become reality, so be sure to share your thoughts and intentions with them in good time.

Leaving a legacy

There are so many options designed to help you to use a portion of your estate to benefit a good cause when you pass away. The estate planning process helps you to ensure that your estate is distributed as per your wishes and in the most tax efficient way as possible, but legacy planning goes further than this and aims to involve your family and loved ones in your plans to make a difference according to your personal values. The input of your family in this process should not be underestimated – they play a critical part in supporting the process to make your wishes become reality, so be sure to share your thoughts and intentions with them in good time.

In which ways can I leave a legacy?

  • Gift your real estate

Your will can state your intention to gift a property to a charity. If you choose this option, your estate will benefit from a tax receipt which can be used against any final taxes to your estate.

  • Name a charity as your life insurance beneficiary

You can choose a number of beneficiaries to your life insurance and may decide that a charitable organization should be one of them. Again, your estate will not pay taxes on this gift.

  • Leave a charitable bequest in your will

The most common and easiest way to donate money is to add a charitable bequest to your will, though you should be aware that it is likely to increase probate and/or executor costs.

  • Charitable remainder trusts

This involves naming a charity as the second beneficiary after yourself and spouse, who will receive income from the trust during your lifetime. After your death, said charity will receive what is left.

  • Using RRSPs and RRIFs

It is possible to avoid probate fees and also have your estate receive a charitable tax receipt to minimize tax, by adding a charity as a beneficiary of your retirement plan.

  • Annuity agreements

This process works by agreement between yourself and the charity whereby you provide them with funds in exchange for a guaranteed income for a set time period (often lifetime). When you die, they will receive what is left of your original contribution. Tax breaks are available depending on your age at the commencement of the annuity (ages between 75 and 90 years of age is tax free, whereas ages 65-74 benefits from a partial tax break).

  • Residual interest

You are able to gift an item of your property to a charitable organization upon your death. This allows you to enjoy the benefits of it during your lifetime (it could be a property or an art collection, for example) but allow the charity to take advantage of its value in the future, as well as your estate receiving a tax receipt for the value of the property at the time of the gift.

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We can help you determine where you are today financially and where you want to go. We can provide you guidance on how to reach your short, medium and long term financial goals.

We can help you determine where you are today financially and where you want to go. We can provide you guidance on how to reach your short, medium and long term financial goals.

Why work with us?

  • Worry less about money and gain control.

  • Organize your finances.

  • Prioritize your goals.

  • Focus on the big picture.

  • Save money to reach your goals.

What can a we help you with?

We can help you with accumulation and protection

Accumulation:

  • Cash Management – Savings and Debt

  • Tax Planning

  • Investments

Protection:

  • Insurance Planning

  • Health Insurance

  • Estate Planning

How do you start?

  • Establish and define the financial advisor-client relationship.

  • Gather information about current financial situation and goals including lifestyle goals.

  • Analyze and evaluate current financial status.

  • Develop and present strategies and solutions to achieve goals.

  • Implement recommendations.

  • Monitor and review recommendations. Adjust if necessary.

Next steps…

  • Talk to us about helping you get your finances in order so you can achieve your lifestyle and financial goals.

  • Feel confident in knowing you have a plan to get to your goals.

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Great news for Canadians out of work and looking for work. The CERB will be extended another 8 weeks for a total of up to 24 weeks. The expanded CEBA will begin June 19th.

CERB Extended 2 more months

Great news for Canadians out of work and looking for work. The CERB will be extended another 8 weeks for a total of up to 24 weeks.

As the country begins to restart the economy, the Federal government will be making changes to the program to encourage Canadians receiving the benefit to get people back on the job. From Prime Minister Justin Trudeau’s website:

“The Government of Canada introduced the CERB to immediately help workers affected by the COVID-19 pandemic, so they could continue to put food on the table and pay their bills during this challenging time. As we begin to restart the economy and get people back on the job, Canadians receiving the benefit should be actively seeking work opportunities or planning to return to work, provided they are able and it is reasonable to do so.

That is why the government will also make changes to the CERB attestation, which will encourage Canadians receiving the benefit to find employment and consult Job Bank, Canada’s national employment service that offers tools to help with job searches.”

More small businesses can apply for CEBA $40,000 no-interest loans

Applications for the expanded Canada Emergency Business Account (CEBA) will be accepted as of Friday, June 19th, 2020. Small businesses that are:

“… owner-operated small businesses that had been ineligible for the program due to their lack of payroll, sole proprietors receiving business income directly, as well as family-owned corporations remunerating in the form of dividends rather than payroll will become eligible this week.”

Apply online at the financial institution your business banks with:

There are restrictions on the funds can be used. From their website https://ceba-cuec.ca/:

“The funds from this loan shall only be used by the Borrower to pay non-deferrable operating expenses of the Borrower including, without limitation, payroll, rent, utilities, insurance, property tax and regularly scheduled debt service, and may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.”

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The intention for our "Guide to Covid-19: Government Relief Programs in Canada” is to help businesses and individuals to cut through the noise and make sure they’re getting all the help they can receive from the federal and provincial programs.

The intention for our “Guide to Covid-19: Government Relief Programs in Canada” is to help businesses and individuals to cut through the noise and make sure they’re getting all the help they can receive from the federal and provincial programs.

Federal programs include:

  • Small Business Wage Subsidy

  • Canada Emergency Wage Subsidy

  • Canada Emergency Business Account

  • Canada Emergency Response Benefit

  • Student Loan Programs

Individual provincial programs include:

  • Utilities

  • Housing

  • Student Loan Programs

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Everybody understands the value of life insurance and most of us who take our finances seriously have a solid life insurance policy in place. But what happens if you are unlucky enough to sustain a serious illness, chronic disease or disability which prevents you from working? Such a scenario could be disastrous for your family finances and this is where disability insurance comes in.

Everybody understands the value of life insurance and most of us who take our finances seriously have a solid life insurance policy in place. But what happens if you are unlucky enough to sustain a serious illness, chronic disease or disability which prevents you from working? Such a scenario could be disastrous for your family finances and this is where disability insurance comes in.

What is disability insurance?

Disability insurance provides you with a portion of your income in the event that you suffer from an illness or accident which means that you can’t work, either temporarily or on a permanent basis.

Studies show that you are actually more likely to sustain a disability during the course of your working life than to die whilst of working age. A disability can have a dramatic and long-term impact on your earning potential – in fact, the Council for Disability Awareness has found that the average absence from work for a long term disability is nearly three years.*

Types of disability insurance

There are two main types of policy – short-term and long-term disability insurance.

Short-term disability insurance generally offers the policyholder a maximum of 6 months of benefits.

Long-term disability insurance usually kicks in at the end of a short-term disability insurance. Policies differ in terms of the length of time that they offer benefits for and the criteria that must be fulfilled to be eligible.

An important factor in this regard is the definition of “regular or own occupation” or “any occupation”. A “regular or own occupation” policy covers you if you are unable to work in any capacity – meaning that, even if you could perform a role different to the one that you worked in prior to your disability, you will still receive benefits under the plan. Alternatively, an “any occupation” policy means that you will only receive disability benefits if you are unable to work at all.

It’s important to figure out which type of policy suits you better, depending on the cost of the premiums, the type of work that you do and your personal preference. We can help you with this.

Factors to consider when taking out disability insurance

  • How much do you or your family depend on your income?

Dependency is the key question here – if you have a spouse, children and/or other individuals who rely on your income contribution to the household finances, disability insurance is likely to be valuable to you.

However, it is likely that, as you age and your children become less financially dependent on you or you have saved enough retirement funds to help you through a potential early retirement due to ill health, disability insurance becomes less fundamental.

  • How much does your company plan protect you?

Some companies offer a disability policy and this is a common reason for people failing to purchase a personal plan. However, it’s important to understand the level of coverage that your company policy offers you, as it is common for such plans to only replace a small proportion of your income (often capped) across a short-term basis which is unlikely to be sufficient for your needs.

  • Work out your budget and shop around for the best deal

You could benefit from working with an independent financial advisor to help you in the purchase of your disability insurance. They will be able to search the market in order to find you a customized plan which fits your budget, rather than falling back on off-the-shelf policies which may not meet your individual requirements as well.

  • Don’t cut back on your level of coverage where possible

That said, it’s easy to underestimate the level of disability coverage that you actually need should the worst happen. Not only would you have to replace your existing expenditure, but you are likely to accumulate new expenses if you were to become disabled, such as the purchase of medical equipment, healthcare or home help, additional childcare, home renovations etc. Make sure that the benefits that your policy pays out are sufficient to cover all of your financial needs adequately.


Key questions to ask when purchasing disability insurance


There can be a lot of small-print involved in a disability insurance policy. Make sure that you understand the answers to the following, non-exhaustive questions before proceeding:

  • Terms and conditions of the policy- Including how disability is defined, which conditions are eligible and which are excluded and if pre-existing conditions are covered and, if so, to what extent.

  • Policy premiums- Including the total cost of the policy and whether contributions are still required if you are diagnosed with a disability and claiming on the plan.

  • Benefits of the plan- Including the level of benefits you will receive, whether they are adjusted for future inflation and whether they are taxable, any waiting periods for receiving premiums and how a disability is diagnosed.

  • Group plans- Including how the plan is funded (by an insurance company or self-funded by your employer), how your benefits will be affected if the company goes bankrupt and how your coverage will be treated if you leave your job.

Disability insurance is an important cornerstone to achieving your financial goals. Talk to us, we can help.

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Before buying insurance from your bank to cover your mortgage, please consider your options. What does the insurance cover?

Before buying insurance from your bank to cover your mortgage, understand the difference between self owned mortgage life insurance and bank owned life insurance. The key differences are ownership, premium, coverage, beneficiaries and portability.

Ownership:

  • Self: You own and control the policy.

  • Bank: The bank owns and controls the policy.

Premium:

  • Self: Your premiums are guaranteed at policy issue and discounts are available based on your health.

  • Bank: Premiums are not guaranteed and there are no discounts available based on your health.

Coverage:

  • Self: The coverage that you apply for remains the same.

  • Bank: The coverage is tied to your mortgage balance therefore it decreases as you pay down your mortgage but the premium stays the same.

Beneficiary:

  • Self: You choose who your beneficiary is and they can choose how they want to use the insurance benefit.

  • Bank: The bank is beneficiary and only pays off your mortgage.

Portability:

  • Self: Your policy stays with you regardless of your lender.

  • Bank: Your policy is tied to your lender and if you change, you may need to reapply for insurance.

We’ve created an infographic about the difference between personally owned life insurance vs. bank owned life insurance.

Talk to us, we can help.

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