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Posts Tagged ‘debts’
Your Will Needs to Change
Friday, July 10th, 2009
Since there is a recent decline in properties and personal portfolio, these can affect your asset proportions. Now would be a good time for you to check if the financial logic behind estate plans and wills still holds.
Rita Brown, estate planner and CPA, said “You cannot really change your will every time there’s a fluctuation in the stock market. However, if you want your children to have a specific amount of money, and your stock portfolio today no longer allow that, then it’s time to make a change.”
A will can spell out the nomination of an executor, guardian for minor children, any specific gifts, and beneficiaries of your assets. Software or books are available for any basic will although it’s still necessary to hire an attorney as your accounts and properties become more complex.
When you deduct all your debts from your property’s fair market value, you’ll get the value of your estate. Also, the value determines whether the beneficiaries will be charged with capital gains taxes and whether there will be estate taxes when you pass away.
For 2009, an estate’s first $3.5 million ($7 million for couples) will be exempt from estate taxes. Also, there’s a gift tax with $1 million lifetime exemption.
Tags: attorney, debts, estate planner, estate taxes, fair market value, Rita Brown, stock market, stock portfolio, will
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60% of Canadians Don’t Have Wills
Saturday, June 27th, 2009
The chance of catching a fire in your house is only one-in-230; but people are lining up to get property insurance, just to be sure. Meanwhile, the odds of death are one-in-one; despite this, over 60% of Canadians do not have a will or even a comprehensive estate plan. This is according to Society of Trust & Estate Practitioners.
Maybe it’s an issue of facing mortality or not wanting to place a burden to the family. Most of the time, people don’t see any immediate benefit of planning for the estate, or sometimes, they just don’t know where to start.
Everyone should make a will, regardless of your wealth. An estate is everything you own - this includes property, investments, and real estate. At the same time, it also includes all the debts you owe.
The objective of most people is to make sure that their family is financially secure when they die (though in some cases, beneficiaries may also include charities or non-family members). So an effective “will” does not only make sure that it states clearly who should get what, but rather, distributes the assets tax-effectively and efficiently. It’s also critical that your assets are managed before you are incapacitated or ill.
The first step would be to pull together a team of experts to guide you. It’s recommended that you include a financial adviser, tax professional, and a lawyer, who can be your overall coordinator.
Tags: debts, estate, estate plan, experts, financial adviser, investment, lawyer, property, real estate, tax professional, wealth, will
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