Transcript of How will you be remembered? Making a Difference in the Lives that Follow April 26, 2014 Presented...
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- How will you be remembered? Making a Difference in the Lives
that Follow April 26, 2014 Presented by: Ross Young, CA, CFP
Strategy Wealth Advisors
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- Outline Hierarchy of Needs Death and Taxes Dying Intestate vs.
Dying with a will Leaving a Legacy with family and charity Taxation
of Charitable Donations Strategic Charitable Gift Ideas E.&O.E
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- Maslows Hierarchy of Needs 4
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- Death and Taxes On death you are deemed to have disposed of all
capital property for its fair market value Rollover available for
spouse, common law partner or spousal trust RRSPs fully taxable
Marketable securities capital gains Shares of private company
capital gains If death between Jan & October, taxes due April
30 th otherwise 6 months E.&O.E 5
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- Wills vs Intestate 56% of Canadians do not have a will Cant
choose beneficiaries Cant choose who administers your estate Cant
plan to minimize taxes Cant choose guardian for children E.&O.E
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- Example Andy & Michelle Andy and Michelle both on second
marriage each have children Andy dies, Michelle dies six months
later, neither have a will What are the consequences? E.&O.E 7
Mrs. Andy Michelle Family
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- What makes a valid will? Must be made in writing Must have
signature of testator and be clear that it was intended to be a
will Formal Will signed in front of two witnesses and two witness
sign in front of testator Holograph Will completely in testators
handwriting and signed by testator Military Will member of Canadian
Forces on active duty can make a will by signing it E.&O.E
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- Options for Wealth Distribution 9 All Assets Mr.Mrs. CRA Family
Community (Charity) 1.Three beneficiaries of all assets 2.Structure
estate so majority of assets to charity and family 3.Least amount
possible to CRA E.&O.E
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- Leaving a Legacy Importance of passing on values, wisdom and
stories to future generations Consider creating a document aside
from the will that discusses these items Reflection on history and
who and what was important in your life Philanthropy from Greek
word philanthropos meaning humanity, benevolence or loving of
humankind Contributing our time, our talents and our financial
resources to make a difference E.&O.E 10
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- Taxes and Charity Donations under $200 Federal tax credit 15%
Provincial tax credit 10% Total tax credit 25% Donations over $200
Federal tax credits 29% Provincial tax credit 21% Total tax credit
50% E.&O.E 11
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- Strategic Charitable Gift Ideas
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- Charitable Bequest Most common way to leave a planned gift
Consider leaving residue of estate to charity ensures family is
taken care of Consider donation of RRSPs to eliminate tax on death
E.&O.E 13
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- Opportunity Gift of Securities Gift of $100,000 cash Net cost -
$50,000 Gift of $100,000 securities $0 Cost base - $50,000 tax
credit, savings of $19,500 on capital gain avoided Mrs. E.&O.E
14 Mrs. Charity $100,000 $50,000 Cash Tax Credit Net Cost$50,000
Stock $50,000Tax Credit $19,500Capital Gain Savings $30,500 Net
Cost CashStock
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- Summary Hierarchy of Needs Death and Taxes Dying Intestate vs.
Dying with a will Leaving a Legacy with family and charity Taxation
of Charitable Donations Strategic Charitable Gift Ideas E.&O.E
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- Questions Ross Young 403-809-7157
ryoung@strategyadvisors.ca