Wealth Management Seminar

Wealth Management Seminar

By Dolores Caldwell

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Sunrise Credit Union – Reston Branch hosted a Wealth Management Seminar on Thursday, October 24 in the R.E.S. Centre at 7:00 p.m. with Karen Beauchamp, Lawyer for Meighen Haddad LLP who specializes in Real Estate, Wills, Estates, Incorporation and Powers of Attorney and Asad Zaidi, CIFC – Director, Business Development Wealth Specialist who spoke on Segregated Funds.

 Sunrise VP Wealth and Marketing Specialist Tayona Johnas welcomed everyone and introduced both Karen and Asad to the meeting.

 Karen Beauchamp explained the executor’s role and responsibilities, wills and power of attorney, naming of beneficiaries, dangers of joint accounts.

 Asad Zaidi explained wealth strategies and how to protect your assets.

 Discussing estate matters is rarely an easy conversation, but talking about your intentions and your family members’ expectations lets you address any contentious issues while you’re alive – and avoid potential conflicts after you’re gone.

 When you die, you’re deemed to have disposed of your capital assets at their fair market value. This means your estate is liable for capital gains taxes on assets that have increased in value during your lifetime. Your executors may be forced to sell estate assets to pay for the tax liability – and a forced sell may mean the assets are sold for less than their value.

Probate is $7 for every $1000 of assets.

Wills: Unless a person is a lawyer experienced in drafting wills, they probably shouldn’t be writing their own will. The money saved by writing one’s own will or using a will kit will be more than offset by the legal fees and family disharmony incurred if the will has to be interpreted by the court.

 Probate is a court grant that ratifies the appointment of the nominated executor and acknowledges under the court’s seal that the will has been properly executed and proved before the court that it is the deceased’s “Last Will”.

 Joint Accounts - There are many pitfalls of registering property in joint names with a child or children:

Family property - If you transfer property to joint names with a child and that child has spousal problems, the property could be subject to a family division with that child’s spouse.

Creditors - If the child has financial problems, the property could be the subject of a claim of creditors in bankruptcy or alternatively prevent the transfer of that property out the child’s name because of land or writ registrations against the child.

Premature Death - Transferring all the property to joint names with all your children may result in a problem if one of the children dies before you. That child’s name would be removed from the title leaving the surviving children owning the property. Often the parents want the child’s estate or children to receive the deceased child’s share in the property.

Income from Property- The child may make claim to the income generated off the property. Alternatively Canada Revenue Agency may claim that some of the income before death should be taxed in the child’s hands.

Capital Gains Tax - Transfer of farmland into joint names may miss the opportunity to use the capital gains exemption. Transfer of a principal residence may result in capital gains tax to a child on your death.

 GST - The transfer of an interest in land may require the new joint tenant to have been a GST registrant or pay 5% of the value of the property acquired.

 Dealing with Land - Once joint tenancy has been created you cannot borrow against the land, lease, or sell it without the consent of all the joint owners.

Summary: the advantage of possibly avoiding probate costs in the future is usually outweighed by the may potential disadvantages of transferring property into joint names.

 Karen stressed that it is very important to have a will and that will should include executors that you trust and that are willing to take on the responsibilities of being an executor. Your will should include a list of assets, life insurance and bank accounts. It should also include a list of passwords for the executor to use. Some people who may be jumping on a plane are tempted to write a hologram will - it must be in your own handwriting and signed at the bottom. You need to make this will formal on your return. Update your will especially if there has been a recent marriage or separation.

For more information on writing a will, power of attorney or questions dealing with probate contact:

Karen Beauchamp

Lawyer for Meighen Haddad LLP



Segregated Fund Advantages by Asad Zaidi:  - Very important to talk of the distinctive advantages of investing with an insurance company. Take advantage of market growth potential while enjoying protection of your savings:

For a death benefit protection 75/100 |100/100

For a maturity benefit protection 75/75 I 75/100 I 100/100

Distinctive features: Offer your beneficiaries a quick and confidential settlement at death, without the probate expenses.

Thanks to the beneficiary designation, the segregated fund contract is not part of the estate.

Rapid settlement to the beneficiary (Weeks instead of several months).

Confidential settlement because it is not part of the estate. No Probate fees: cost and delay.

Enjoy protection against creditors. - Very interesting advantage for professionals, self-employed, small business owners, owners of income properties. Policyholder’s creditors can NOT seize the amounts invested in the contract.

The beneficiary designation is very important to have this benefit.

Creditor protection depends on court decisions and applicable legislation, which can be subject to change and can vary from each province.

Beneficiary designation: The rights conferred by the contract make money invested not seizable when the designated beneficiary: is the spouse or common-law spouse, descendant or ascendant of the annuitant
or is irrevocable.

 It needs to be a specific designation of beneficiaries:

The following terms are not considered a specific designation: my heirs, my succession, my executors, my trustees, etc.

For more information contact:

Asad Zaidi, CIFC
Director of Business Development, Wealth
403-910-3357 Direct
403-803-5987 Cell
3600 4th Street SE
Calgary, AB T2G 2W3

 In partnership with

 Ryan MacDonald, BBA
Business Development Associate, Wealth
403-910-3320 Direct
403-209-1406 Fax
800-661-1497 Toll-free
3600 4th Street SE
Calgary, AB T2G 2W3




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