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 The
Money Management Newsletter: Taxes
and Estate Matters
What you need to know about Estate Planning
and More…
Part 4: Reduce taxes and increase inheritances to your loved ones
Compiled by David Newman
Money Management Newsletter, August 2005
Many people support charitable organizations through gifts from their
estates. There are many benefits to giving to charities through your Will.
A charitable bequest in your Will reduces the taxes owing upon death thereby
increasing the inheritances to your loved ones. A your Will allows you
to make a significant donation upon your death that you may not have been
able to make during your lifetime.
- Convenient - A charitable bequest can be made no matter how
old you are and can be for any amount you want!
- Simple - A bequest is easy to arrange. Simply ask your lawyer
to include a bequest to your charity of choice in your Will.
- Flexible - Your bequest can be a specific amount, a percentage
of your estate or the residue of your estate - that is a gift after
your debts have been paid and other bequests made.
- Cost Effective - There are no extra out-of-pocket costs.
- Tax Relief - A bequest is an effective method to reduce estate
taxes.
- Tax Planning - The charity will issue a tax receipt for the
full value of your bequest. This receipt will be used to reduce the
tax payable on your final tax return. If your bequest exceeds 100% of
your net income, the excess may be carried back to the previous tax
year.
- Control - You retain the use of the charitable gift for the
duration of your lifetime.
- Peace of Mind - You can make changes in your Will at any time.
- Memoralize - Your bequest can symbolize a lasting memorial
for you, your family or anyone you may wish to honour.
Fiscalagents.com Site-links:
Life
Insurance Protection Worksheet - How much is enough?: This three-part
worksheet will help you figure out how much Life insurance will be needed
at death.
Life & Disability Insurance
- One of the most common mistakes made about life insurance is forgetting
that you are the biggest and most valuable asset. Your capacity to earn
a living and provide for your family is difficult to replace. Life insurance
and disability coverage simply protects your dependents against the financial
hardship that your death or disability would bring.
Charitable giving through insurance:
Making that special gift: Are you thinking of making a sizeable donation
to a charity when you leave this world? Life insurance is a versatile
planning technique that can deliver extra benefits, now or later.
Editors Notes: These articles
are only covering some of the areas that need examination when drawing
up an estate plan. If you do not have a Will, or if your Will has not
been updated recently, perhaps it is time to meet with a lawyer and get
the job done. Special thanks to (NC) and Ontario March of Dimes
Getting Advice: We believe that a "Will" requires careful planning
to ensure all essential matters are covered. It should also be reviewed
periodically and discussed with a qualified adviser or team of advisers
to incorporate any changes in your personal circumstances.
Notice: Fiscal Agents Financial Services Group are not engaged in rendering
tax, accounting or legal professional services or advice. The comments
in this newsletter are not intended, nor should they be relied upon, to
replace specific professional advice. Before acting on material contained
herein. Readers should seek advice that is appropriate to their personal
circumstances from a professional advisor.
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, Fiscal Agents Money Management Newsletter
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