Wills
The Will is of paramount importance.
Do you have a Will in place?
What does it say?
What does it mean when you say your Will includes everything?
What do you want to have happen?
If left unchecked, disorder, confusion and (sometimes) acrimony amongst heirs will occur.
Lawsuits can result in disputed estates, hence the importance of planning. This is particularly true when planning with an advisor as compared to shopping online.
Although a Will may be in place, it doesn’t mean that it’s current, signed or accurately reflects what you want your directive to be. We offer to review your will in an effort to uncover some unintended consequences and liquidity issues.
BNN-Bloomberg posits that fewer than half of Canadians have a will. That number is less for Wills that are up to date.
Considerations for Business Owners
Oftentimes, the more significant the situation, the greater likelihood that not much planning has taken place. Frequently, changing circumstances haven't been addressed and there is not a signed will or an assigned enduring power of attorney.
In business succession, many owners rationalize that their business can continue without them, be run by employees, or be sold without actually having a structure or plan in place. A close examination with an advisor would reveal a very different reality.
Business owners can regularly be asset rich and cash poor. We've discovered that a business owner’s wealth is generally represented by shares of a private corporation. When the business is to be continued by the family, other shareholders, or by members of a family trust, a unanimous shareholder agreement must be in place.
Lawyers and accountants are a vital part of a financial planning team. However, their area of expertise is limited when considering how insurance can add value to that plan. Furthermore, they often only act when they are instructed by their client. Many don’t see it as their responsibility to be proactive on estate planning.
Not all professional advisors are created equal. Many are unfamiliar with taxation or the application of life insurance in a corporation. Generally, they misunderstand the capital dividend account and its application. Discussion with an agent that is well versed in such areas will ensure your needs have been met.
Even though the purchase of the insurance provides peace of mind, the completion of the remaining planning can lose its significance. The result is that wills don’t get rewritten, freezes get deferred and family trusts remain incomplete. An advisor should resolve to see all these things through.
Insurance Advice
Our job isn’t about selling insurance, it’s about assisting our clients clarify their objectives.
Our job is to highlight the issues of concern to clients who haven’t identified nor acknowledged the issues themselves.
Advice for those considering Insurance
Most people haven't discussed their succession plan and overall estate plans with their children. A family discussion can provide the reasons behind the estate distribution plan that could eliminate disappointment or (even worse) resentment.
Insurance is just one alternative/solution to a succession plan. However, it is often the most economical choice.
Just because good professionals have been involved with a client’s planning doesn’t mean that the planning is correct or complete. Don’t assume that succession planning issues have been identified. Meeting with an agent can correct any issues that have been overlooked or misunderstood when it comes to the application of insurance.
Insurance isn’t a commodity, simply providing a quote doesn’t allow for an examination of what you might think you want versus what you actually need for your estate planning.
Life insurance reflects that death is not an “IF” but a “WHEN.”
When considering car insurance, we know that it is possible that we might have an accident.
With Life insurance, however, provides coverage on the inevitable demise of an insured person.
Therefore, Life Insurance is a guaranteed addition to the value of anyones estate.