Estate Planning Seminar Ian Lewer Director Planned Giving Dalhousie University

1. Estate Planning SeminarIan LewerDirector Planned GivingDalhousie University

2. What is Estate Planning (Legacy Plan)? • It’s taking time to figure out what you want to achieve • It’s taking time to formally document your intentions • It’s understanding how the ‘plan’ works • It’s understanding how the ‘plan’ might change over time • It’s a process…which evolves and changes…and often needs to be revisited and reviewed

3. Introduction • Will’s & POA’s • Estate Administration • Executor duties and responsibilities • Reporting • Risk management • Tax returns • Red flags • Various Assets and how they are treated • Estate Planning

4. Will’s and POA’s • What is a Will? • What is a ‘living Will’? • What is a POA?

5. Will • All other wills are null and void • My Executor (legal representative is….) • Grant my Executor full power and authority • Instruct Executor to pay taxes, debts and outstanding obligations • Distribution of Estate • Other formal powers

6. Estate Administration • Executor duties and responsibilities • Funeral arrangements • Collect & Protect • Reporting (penny by penny) • Distribution and Tax returns

7. Estate Administration • Reporting: • Detailed reporting to beneficiaries • Communication (reasonable and detailed) • Probate (if required)

8. Estate Administration • Probate…what is Probate? • Public document….why bother….do I have to? • $15.53 for every $1,000 (or part thereof) over $100,000 in NS • RoT: 1.5% • Example in NOVA SCOTIA • Home $300,000 • GIC’s $150,000 • Other $ 25,000 • TOTAL: $475,000 X 1.5% = $7,125

9. Estate Administration • Risk Management • Personal Liability Risk • Estate Risk….someone challenging the distribution….family member being ‘left out’ or unfairly taken into consideration • Asset Risk: What risks are associated with different assets? • What steps should an Executor take to minimize risk? • Investment Risk

10. Estate Administration • Gift Types: • General: I give John $5,000 and Rita $5,000 • Specific: I give John my stamp collection, or I give John my RBC shares • Residue: I give John 50% of my residue and Rita 50% of my residue • What if a beneficiary dies before testator? Per Stirpes • Gift not in existence upon death? Ademption (specific gift no longer exists) • Insufficient funds exist? Abatement

11. Estate Administration • Tax Returns • Personal Tax Return & T3 Tax Return(s) • Rights of Things? (unpaid income, declared dividends) • Clearance Certificate • Accrued interest on GIC’s and Bonds? • What if the estate drags on? • What if the deceased has not filed personal returns for prior years? • What tax minimization strategies should an Executor be aware of?

12. Estate Administration • Red Flags • Executor is unwilling or unable to act • What if an Executor is acting and then unable? • Executor lives out of Province/Country • Executor(s) don’t agree on an issue • Dysfunctional family dynamics • Multiple Beneficiaries • Potential known challenges

13. Treatment of Various Assets • Ownership • Sole ownership • Joint with Right of Survivorship (JWROS) • Tenants in Common • Registered Accounts (Tax issues???) • RRSP/RRIF (beneficiary designation…under 18) • RESP • TFSA

14. Treatment of Various Assets • Life Insurance • Real Estate: (locks, insurance, theft, maintenance) • Primary Residence • Cottage • Land in Cape Breton • Rental Properties (RED FLAG) • Cars/Boats/Recreational Vehicles

15. Treatment of Various Assets • Guns: Registration….are they secure? • Food in the garbage from the night before? • The ‘family’ heirlooms…who gets what….who wants what? The small things that often cause great emotional stress

16. Estate Planning • Taking care of loved ones • Tax minimization strategies • Creating a Legacy: Charitable Giving • Provide your Executor with the authority to gift publicly traded shares ‘in-kind’ • 100% of your taxable income in year of death and prior year • Jan 1st, 2016