Before diving into the topic of this month’s newsletter, I wanted to pass along a few other tidbits. First, I have two webinars coming up rather quickly. First, I am presenting at the World Money Show in Toronto this Saturday at 1:45 local time (10:45 in the fair place I call home), although this will be available via webinar. If you want to learn a little bit about how trusts work and hear of a few examples of their uses, then load up on the latte and tune in via the following link: http://www.worldmoneyshowtoronto.com/special-events.asp?specialtype=cm If you aren’t able to attend or this doesn’t get circulated before then, I suspect a recording will soon be available and I will try to link it to my website Read more
Posts from the ‘For Lawyers’ Category
In my last article, I wrote about some of the steps you could take to wreak legal and financial chaos on those you love. I originally wanted to also include those important steps you could take to also drag down the family business / farm or start a family squabble that could hopefully last for generations. When I started writing, however, I quickly saw that this needed an article all to itself, as the opportunities seem almost endless. Even so, I won’t have time to address the extra level of problems that can arise if your immediate family aren’t the only owners of a business.
Most of the mistakes regarding your estate planning if you own a businss can be broken down into 3 main areas:
• Working really had to build a successful family business / farm then putting no effort into the logistics of how the company will operate without you and how to make things work at that point without your children engaging in a bloodbath;
• Failing to think about taxes and other expenses that can cripple your business, force your heirs to sell out or result in a much higher tax bill at your death than anyone deserves; and
• Not getting the proper legal documents and advice in advance.
I am the first to admit that lawyers generally a pretty conservative bunch; if something has worked well enough in the past (no matter how ancient), then why rock the boat by trying something new? Sometimes, however, even the most cautious and traditional of lawyers realize that it’s time for a change. Accordingly, after many, many years of consideration, contemplation and conversation, our province has implemented sweeping changes to the rules regarding wills and estates through a single new piece of legislation entitled the Wills, Estates and Succession Act that consolidates many other statutes into one stop shopping. Essentially, it’s like making 90 years of changes all at once.
If you’ve read my first article in this series, you probably know more than you really want to know about term life insurance. It’s now time to talk about the other side of the equation: permanent coverage. To recap, while term insurance is a simple tool with a few add-on features, permanent life insurance is like a swiss army knife that can do pretty much everything except make your bed and laugh at your jokes. Of course, whether this is worth the extra costs that can go along with these features and whether it is the best tool for your situation is an entirely different question. Sometimes, permanent life insurance can be a game changer. Sometimes, it can do a pretty good job but there might be other products or solutions that do an even better one. Sometimes, the wrong permanent policy can even leave you worse off than when you started. This article (and my ensuing) articles are designed to help you make informed insurance choices.