silvergoldmagazine.ca
MONEY MATTERS
ESTATE PLANNING
NIGHTMARES, part 2
– By Brian Weatherdon, MA, CFP, CLU, CPCA, CRC
C losing words in part-1 affirmed, “A loving plan is a written
plan, put together with professional care and updated at times
to address changing needs and wishes.”
How vital this is, as seen in the estate of Warren Burger
who served as the 15th Chief Justice of the USA. Would you
expect such an attorney could write his own Will? He did
– all 176 words – failing to ease a bill for $450,000 in estate
taxes, and neglecting to authorize executors to administer real
estate and other issues.
returns just covered basic inflation – earning little or nothing.
Their lifestyle expenses were less cautious and the bills were
adding to their pain. At this rate they were destined to be
penniless in seven to eight years. By 2025 they’d be in
poverty, dependent upon family, and leaving an estate full of
debts and bills. Not what they wanted! Fixing this meant
easing into a lower-cost lifestyle , and learning to invest
for stronger returns.
We nearly saw a nightmare but it passed safely. If Edith had
died
sooner she would have left a unique home with peculiar
Other nightmares of outdated Wills (or
beneficiary instructions for life insurance) arise when an disadvantages. Do you know anyone in such a
adult child dies unexpectedly. George and Peggy wrote Wills position? Edith’s late husband had built additions and
saying that when they both passed away, their estate would done things himself. None of this had city building approval.
be divided equally between their three children, who would Upgrades had been hidden to avoid raising house taxes. It
together serve as the executors. Sadly, a son Luke died before came to light when Edith met with a senior-accredited real
the parents. That left a big hole in their lives, and also in estate agent about selling the house. Legal issues and approvals
their estate. What would happen to his portion? Consider had to be cleared first, pushing sale into the following year.
how the executors could: (a) pay Luke’s portion to his wife? It would have been especially nasty to leave such issues for
(b) pay Luke’s portion to his two children? (c) keep Luke’s executors to sort.
portion in trust for his children? (d) keep Luke’s portion
As Socrates said, “The unexamined life is not worth
to themselves? When money mixes with family dynamics, living.” Just as true, an unexamined estate will fall
one never knows how decisions will be made and who could perilously short of one’s intent and wishes.
suffer as a result.
How current are your Will and Power of Attorney? Do
Professional care also touches how money is managed insurance beneficiaries need to be updated? Are your
while living. A couple spoke with me about their financial investment plans assuring a healthy life income and remainder
needs and investments. Being cautious about investing their for loved ones? Are there questions of real estate, cottage
properties, time-shares, toys, trinkets or other treasures? Can
we look at reducing taxes, probate, and other estate fees?
Sustaining Income
and
Retirement Lifestyles
www.GuaranteedIncome4Life.ca
Brian Weatherdon
CERTIFIED RETIREMENT COACH
CERTIFIED FINANCIAL PLANNER
(905) 637-3500 x 223
[email protected]
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Take time with this – it’s always worth a discussion.•
Brian Weatherdon of Sovereign Wealth Management Inc., is a
Certified Financial Advisor, retirement coach, and consultant on
wealth and aging. 905-637-3500 [email protected]
The information provided is general in nature, and should
not be relied upon as a substitute for advice in any specific situation
requiring appropriate legal, accounting, tax and other professional
guidance. The views expressed are those of the author and not
necessarily those of the issuer of any financial products for which
the author may act as a distributor. Names and circumstances
mentioned above are altered for confidentiality.
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