The inescapable

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  By Guest Blogger Sinan Terzioglu
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Over half of Canadians have no will. More than 70% are without signed powers of attorney. Many delay because they think they’re too young, don’t have enough assets or are waiting to make the perfect will so they never have to change it. Nobody likes to plan for their own death and with no deadline to make arrangements it’s easy to procrastinate. But wills are meant to be updated over time. Moreover, a will involves more than simply appointing an executor and deciding how assets will be distributed. For parents of minor children, for example, it allows you to name a guardian who will take care of them if you pass away.

Without proper powers of attorney in place, Canadians put themselves at risk of not being properly cared or for legal proceedings if they become incapacitated. Some people assume because they have a will they automatically have some kind of power of attorney, but that is not the case.

A will protects your beneficiaries’ interests after you have passed away, but a power of attorney protects your own interests while alive, so they deal with different points in time and do not overlap. There are two types of powers of attorney: 1) property – who is going to process your bill payments and deal with all your financial matters; and 2) personal care – who will be a substitute decision-maker for anything health care-related, such as consenting to medical procedures, where you live and how you are cared for. These are two different documents so when drafting a will ensure you have these powers of attorney prepared as well.

Frequently asked questions:

1.       What happens if I die without a will?

The province where you live will decide what happens with your assets and appoint an executor of your estate. Your heirs would have to apply to a probate court which would then appoint an administrator to oversee the estate – often a long and costly process. Many are surprised to learn that there isn’t much consistency among Canadian provinces in determining the distribution of estates even if you are married with children. So it is even more important than most realize to have a will in order that assets are distributed as you would like.

2.       Who should I appoint as an executor of my will?

Most appoint a family member or adult children as the executor of their will but many do not realize how complicated and overwhelming being an executor can be and how long the process can take. It’s easy to make mistakes especially when emotional and grieving. As time goes on a lot can change with an appointed executor so it’s best to appoint a trust company to act as an executor of your estate. Executor services offered by trust companies cost between 3-4% of the estate value (no money is paid until after you have passed) which is well worth it for the peace of mind of knowing that professionals will ensure everything is processed correctly and your loved ones will not have to deal with all the legal complexities and deadlines of settling your estate. All the major banks (and Raymond James) have trust divisions that offer executor services and they can be appointed as powers of attorney and trustees as well. Trust companies also provide a secure storage for wills and other important documents so you can have full confidence that your assets will be distributed as you wish.

3.       If my only assets are in financial accounts and I have designated beneficiaries with the financial institutions do I still need a will? 

Yes. Financial institutions misplace forms and records get lost and there are no guarantees designated beneficiaries are recorded and updated. If there was a mistake (such as your spouse was supposed to be the designated beneficiary of your RRSP but instead your estate is named) there could not be a delay with distributing the assets plus tax complications. You can designate a beneficiary for registered accounts such as TFSAs, RRSPs, RRIFs, LIRAs and LIFs but you cannot designate a beneficiary for non-registered accounts so it’s best to ensure your will states designated beneficiaries for your registered accounts.

4.       Can charities be named as beneficiaries in a will? 

Yes. You can leave a dollar amount or a certain percentage of your estate. An alternative option is to donate money indirectly to charities via programs run by banks and financial institutions whereby a donation can be made to a gift fund.  An additional benefit of these programs is that they offer the option of involving your beneficiaries in ongoing donations.

5.       What happens to my RESP if there is no mention of it in my will? 

Since you cannot designate beneficiaries to an RESP it is very important to ensure that your will outlines whether your executor or someone else will be appointed as the successor subscriber of your RESP. Otherwise if you pass away the RESP will be collapsed and the funds distributed to your estate. All education grants will be returned to the government and all tax advantages would be lost. RESPs can be easily overlooked by lawyers and online estate planning platforms so it’s very important to ensure your RESP is included in your will.

Since we cannot control all of our life circumstances we must plan ahead. A will is about a lot more than just the distribution of your assets. If you have children you must decide who will be appointed as their guardians and consider the financial implications of raising them. For example, will the appointed guardian need to renovate their home and if so you should consider these sorts of things when deciding how your assets should be distributed in your will?

Younger parents may appoint their own parents to be the guardians of their children but as time goes on parents age so you may decide to change the appointed guardian. Therefore a will should be regularly reviewed and updated as necessary. For those with relatively straight forward situations there are online estate planning platforms which generate wills quickly and at a relatively low cost.  An additional benefit with some online platforms is you are able to update your will at no cost so this makes it very easy to deal with major life events. You can even have a hand written will so if you are worried about the cost of meeting with a lawyer there are alternative options but for those with more complex situations such as blended families it would be best to hire an estate lawyer.

Sinan Terzioglu, CFA, CIM, is a financial advisor with Turner Investments, Private Client Group, Raymond James Ltd.  He served as vice-president of RBC Capital markets in New York City and VP with Credit Suisse in Toronto.

 

68 comments ↓

#1 Søren Angst on 07.15.22 at 2:45 pm

76 THE NEW 36 – birth not death.

Elon Musk’s father Errol, 76, has a second child with 35-year-old stepdaughter
https://www.moneycontrol.com/news/trends/current-affairs-trends/elon-musks-father-errol-76-has-a-second-child-with-35-year-old-stepdaughter-report-8832331.html

ALL YOUR FAULT MILLENNIALS

Millennials are to blame for sky-high inflation, strategist says
https://www.cnbc.com/2022/07/15/millennials-are-to-blame-for-sky-high-inflation-strategist-says.html

Pot. Stir.

——————-

PS:

Obrigado 🍁 Canadair.
https://twitter.com/vigilidelfuoco/status/1547998815390613505

#2 Søren Angst on 07.15.22 at 2:47 pm

REBIRTH.

GOOD NEWS TWTR Albatross.

Judge in Twitter v. Musk made rare ruling: ordering a deal to close
https://financialpost.com/technology/judge-in-twitter-v-musk-made-rare-ruling-ordering-a-deal-to-close?utm_medium=Social&utm_source=Twitter#Echobox=1657902809

Judge Kathleen McCormick is not a big fan of people trying to weasel their way out of a deal.

And THAT’S a GOOD thing. 🤞

#3 TurnerNation on 07.15.22 at 2:48 pm

Any truck with this internet rumor?
(Well many times I posted here that the Second and Third World Countries get bom’d, while the 1st World Countries get economically bom’d.)

“”Speaking with a TD advisor (i’ve known this person for over 20 years) – they are being told customers will likely see a full bank prime rate of over 8% at all Canadian banks by the end of the year.””

——
O Well — for all the Coincidence Theorists. Seen on the ‘net:

“Estonian Prime Minister, Kaja Kallas, has just resigned.
This follows upon the resignation announcements today of Italian Prime Minister, Mario Draghi, Sri Lankan President, Gotabaya Rajapaksa, Israeli Prime Minister, Naftali Bennett, and British Prime Minister, Boris Johnson, as well as the assassination of former Japanese Prime Minister, Shinzo Abe.”

——I take an evidence-based approach to my ranting. To anybody that was paying attention all free travel ended March 2020.
Almost 2.5 years later and….hey this almost sounds like a ‘backdoor’ climate [sic] target doesn’t it?

“The Globe and Mail reports in its Friday edition that Emirates airline said on Thursday it had rejected demands by London’s Heathrow Airport to cut capacity despite being threatened with legal action….A Reuters dispatch to the Globe says that Heathrow this week asked airlines to stop selling some tickets for summer flights, limiting the number of passengers flying from the hub to 100,000 a day to ease pressure on operations that have been unable to keep up with demand” (stockwatch.com)

#4 Honey money on 07.15.22 at 2:48 pm

Over half of Canadians have no will.

No kidding! Getting my wife to help me do chores is like pulling teeth.

#5 Victor V on 07.15.22 at 2:49 pm

Client’s variable mortgage two months ago was $4,000/month now it’s $5,100/month.

At what point will some home owners feel they can’t afford their house?

Rates should have been hiked gradually past two yrs. Def doing some damage now.

https://twitter.com/nasmadotali/status/1547743890974711808

#6 Søren Angst on 07.15.22 at 2:57 pm

Your #3. Right you are ST.

Death Certificate.

Get lots of them made up.

Even with an heir apparent, banks like a Death Certificate to get the ball rolling (well, TD does).

…speaking of Death & Cdn banks, latter still taking it in the nards (all in the RED, boo hoo).

https://www.google.com/finance/quote/BNS:TSE?comparison=TSE%3ATD%2CTSE%3ACM%2CTSE%3ARY%2CTSE%3ABMO&window=YTD

…whereas something else Cdn is not (all in the GREEN, so to speak).

https://www.google.com/finance/quote/ENB:TSE?comparison=TSE%3ATRP%2CTSE%3ASU%2CTSE%3APPL%2CTSE%3ACVE&window=YTD

—————-

Fill in the blanks Garth…

yeah _ _ _

#7 Indigirl on 07.15.22 at 2:59 pm

I will always disagree with the advice you and Garth give with respect to appointing an executor. Trust companies are a rip off. They need to approve you and your will. This means unless you have oodles of moolah, they don’t want you. Plus, many of them insist you include clauses in your will to give them the right to invest in their own investments. So not only do you pay the large fee based on the size of your estate, you also pay for them buying and selling their products within your estate waiting for the administration to be finalized. Your executor only needs a good lawyer, accountant, and can carry on with your financial advisor.

#8 TruthBeTolled on 07.15.22 at 3:00 pm

So refreshing to not have to read about interest rates and mortgages on a Friday.

However, please mention to Garth that my B&D (including pref share ETFs) is down significantly more than my spectacular Kelowna property … that Garth said just last month would be worth nearly 50% less …

In fact, from June 6th post ….”After a bull market which saw detached prices rise by 96% between 2018 and the end of March, 2022, it’s over. In the last eight weeks, prices have retreated 11%, or $142,000 and are forecast to roll back 47% (or $557,000) over the course of the next year. Therefore the average detached price of $1.281 million will become $724,000, says RE Analytics”

Hmmm. Perhaps you could ask him to print a retraction… or as a minimum, find out why he has such a hate on for the Okanagan. I’ll send you a case of gargantuan fresh peaches if you do!

Not my prediction, but that of Kelowna-based real estate data company (as I reported, clearly). Go dump on them. – Garth

#9 Honey money on 07.15.22 at 3:04 pm

#3 TurnerNation on 07.15.22 at 2:48 pm

“”Speaking with a TD advisor (i’ve known this person for over 20 years) – they are being told customers will likely see a full bank prime rate of over 8% at all Canadian banks by the end of the year.””

——–

Good thing you’ve known this person for over 20 years …otherwise we’d have to question the veracity of such a statement!

BTW, I’ve known my wife for over 20 years and she claims I am a genius!

#10 Roman Candle on 07.15.22 at 3:08 pm

#2 Søren Angst on 07.15.22 at 2:47 pm
REBIRTH.

GOOD NEWS TWTR Albatross.

Judge in Twitter v. Musk made rare ruling: ordering a deal to close
https://financialpost.com/technology/judge-in-twitter-v-musk-made-rare-ruling-ordering-a-deal-to-close?utm_medium=Social&utm_source=Twitter#Echobox=1657902809

Judge Kathleen McCormick is not a big fan of people trying to weasel their way out of a deal.

And THAT’S a GOOD thing.

_____________

You obviously have no idea what a few hundred billion dollars will buy you these days!

Sell your position now before she blows up like a Roman candle! Thank me later when you realized how much I saved you.

#11 yvr_lurker on 07.15.22 at 3:22 pm

Perhaps for a complicated situation one has to eat the 3–4% fees for a professional executor (i.e. if one has a business to collapse etc..), however for easier estates where there is just a residence and some financial assets to dispense, it is frankly a waste of $$$ if one has the time and energy to do it. Why lose 4% when you can take it on yourself? I am the executor of my mother’s estate (who passed in early April) and with only my step father and me on the will it is a straightforward task (but I agree that there are many forms and one needs a long list to do it with care).

#12 Søren Angst on 07.15.22 at 3:35 pm

Mr. Market has lost its mind wrt TWTR.

Some comparisons. Mar 22.

Revenue USD $, Y/Y CHANGE

AAPL = 97.28B, +8.59%
TSLA = 18.76B, +80.54%
TWTR = 1.20B, +15.92%

Net Income

AAPL = 25.01B, +5.84%
TSLA = 3.32B, +657.53%
TWTR = 513.29M, +654.78%

Earnings per Share

AAPL = 1.52, +8.57%
TSLA = 3.22, 246.24%
TWTR = 0.90, +462.50%

Share Price, YTD Return as of Jul 15, 2:57:23 PM UTC-4 · USD

AAPL = 149.36, -17.94%
TSLA = 717.63, -40.19%
TWTR = 37.51, -12.07%

MSM Headlines:

– Piper Sandler Cuts Twitter (NYSE:TWTR) Price Target to $30.00 – 9 hr ago
– Twitter shares could drop to $11/share without deal, analyst says – 4 days ago
– Twitter drops 7.5% on report Musk’s purchase bid in jeopardy – 1 week ago

I mean, who are these people?

Is there some Alternate Universe Stock Market info they are using I am not aware of?

…Exasperating.

#13 Sail Away on 07.15.22 at 3:37 pm

Thanks Sinan, good writeup.

A couple of important related items:

1. Any executor who feels overwhelmed or just doesn’t want to do the executor-ing has every right to hire a trust company as professional agent for the executor to handle things and be compensated by the estate.

2. When designating an executor in the will, it is also a good idea to designate a professional trust company as co-executor. No point in re-inventing the wheel.

#14 Flop… on 07.15.22 at 3:43 pm

81 year old Father in law, got diagnosed with dementia earlier this week.

Mother in law’s biggest concern is who’s going to drive her to her social engagements…

M48BC

#15 Been there on 07.15.22 at 4:01 pm

In my recent experience, the medical profession will readily accept a Power of Attorney for Personal Care if you are a close relative, ie son, daughter, brother.

However dealing with banks with a Power of Attorney for Property can be another matter. My brother’s bank (which was also mine) insisted on a written note from him. I had provided the bank with the Power of Attorney for Property original document with my brother’s signature on it, to authorize me to act as his attorney when he is incapacitated.
However the bank personnel wanted my brother now that he was incapacitated to sign that he authorizes me to act as his attorney when he is incapacitated. Talk about absurdly redundant and frustrating! It took a month of delay before the bank finally agreed to accept the POA.
The broader question may be- Who decides when someone is incompetent to manage their financial affairs? a relative? the person named as POA? a medical professional? Perhaps it needs to be specified in the POA itself?

Once my brother passed, and the estate was probated, the bank took approximately 6 months to transfer the investments into an estate account. It should have been pretty straightforward. However, the investment account, which really needed attention for re-balancing, was frozen for 6 months. In that time there were meetings with bank branch personnel, estate dept personnel and investment branch personnel. Personnel came and went, decisions delayed and reversed, paperwork signed then told it would have to be done in a different way. It was like herding cats. In the end, when I was able to access the account, I took every penny out of that bank from the sizable estate and my own accounts.
I don’t think the bank even cared as it wasn’t a revenue generator for them. They just want to take your deposits and sell you loans.

Regarding Executors, beware of naming two Executors, for example, siblings. It may seem fair to do so, however the bank may insist on both Executors being present for any meetings and decisions, even if the will says that they each have full power separately.
This can be very complicated, for example, if the two Executors live in different parts of the country.

#16 NOSTRADAMUS on 07.15.22 at 4:06 pm

“WAS BLIND BUT NOW I SEE.”
The above lyrics to Amazing Grace come to mind, when I listened to the Federal Reserve’s little brother Tiff Macklem, the head of the Canadian Central Bank, explain that their monetary policies of (1) reckless money printing, (2) years of interest rate repression, and (3) Historical Government stimulus where in no way responsible for todays out of control inflation. No Sir, no apology here. The real cause of the high inflation we are experiencing today was caused by a laundry list of global factors, (1) The war in the Ukraine, (2) The Covid lock downs, (3) Supply chain issues. The truth, the whole truth, nothing but the truth so help me God. In order to wrestle the beast of high inflation to the ground the Central Banks have gone back in time to the 17th century treatment of bleeding the patient in order to heal them. How, you may question? Obvious, raise the cost of capital and make it virtually impossible to get. I suspect that before too long, the autopsy will indicate the patient, unfortunately bled out. Amazing Grace “was blind but now I see..” Thank you, Tiff. Steady Lads, hold the line.

#17 Linda on 07.15.22 at 4:11 pm

Excellent post, Sinan. Regarding appointing an executor or executors, the true benefit of having this task delegated to a neutral 3rd party via a trust company is that ensures any potential family friction over how an estate is handled is neutralized. I’ve been regaled with tales of families literally coming to blows over the open grave of a deceased loved one even before any will is read & have personally witnessed a former coworker conspiring with one of their family members to exclude another family member from receiving any share of an inheritance. Not by choice. Open office, loud voice, lengthy phone conversation discussing options. Everyone within earshot got to experience the dark side of human nature, that is for sure.

#18 pricedoutmillenial on 07.15.22 at 4:12 pm

Thanks Sinan. Great post!

#19 Chameleon on 07.15.22 at 4:15 pm

Happy Feline Friday!

Yo Felix, have you seen? Toronto now demands cats are leashed! LEASH THAT WILD CLAWED BEAST!

https://nationalpost.com/opinion/jesse-kline-toronto-finally-tackles-the-scourge-of-outdoor-cats

The article has a hard opening worthy of copy/paste.

>>>
“It’s a wonderful thing that Canada’s largest city has solved all its major problems, turning Toronto the Good into Toronto the Perfect. No more tents in parks, traffic congestion or gun violence. Gone are the scourges of opioid overdoses, petty crime and overcrowded subway cars. Now, city council can focus its attention on the true terror plaguing the city … hordes of kitty cats roaming the streets.”
>>>

I’m thinking this is all because of dog owners being scared for their helpless dogs, who through past few decades of sitting on sofas and watching TV and getting treats delivered by DogDash turned soft and forgot they were apparently above cats on the food chain. Or maybe it is the infestation of these small annoying barking little fashion lap dogs that die when a cat looks at them.

Now that cats are to be leashed, surely next step is to have cat off-leash areas. I wonder what those will look like!

#20 Søren Angst on 07.15.22 at 4:18 pm

#10 Roman Candle

Not a chance.

I hate losing & dealing with extra tax form line items such as Capital Losses. I can afford to ride it out to the bitter end.

Besides, since Jul 11 TWTR on the rebound.
https://www.google.com/finance/quote/TWTR:NYSE?window=1M

Clearly, not enough yet as I was stupid enough to buy at USD $50.72/share.

Staying the course, buying more (except TWTR) end of month as dividends come in. 26.3% div today one of them. 36% next week, another.

Besides, in a down market NO POINT MONETIZING LOSSES UNLESS YOU HAVE TO. I don’t have to. Plenty revenue monthly from divs to cover all my expenses, and then some.

————

It will get better as Garth et. al. have pointed out numerous times.

I agree with them.

#21 Sinan Terzioglu on 07.15.22 at 4:38 pm

#13 Sail Away – Thank you for adding the related items. I agree designating a professional trust company as co-executor can help families deal with more complex estates and help ensure everything is processed correctly and quicker – Sinan

#22 Sinan Terzioglu on 07.15.22 at 4:46 pm

#15 Been there – Thank you for sharing your experience and sorry that it was so frustrating. Good point about being careful about naming two executors. Hiring a trust company for executor support services would help make the process a lot less complicated – Sinan

#23 ogdoad on 07.15.22 at 4:50 pm

Oooooh, mama! Speaking of dying, I have died and gone to heaven…well, actually I didn’t die but Montreal in the summer time is the second closest thing to heaven that I have experienced thus far (Full disclosure: Heaven to me, of course, is constant bombardment of happy chem. release brought upon by lovely smiles, hugs and ‘events’ involved while under the influence of baby blues…and sports…and stares..(full. dis. – I’m described as 6’2′, hair, tanned, 10 pack…and smiley)).

Where was I? Oh, right. Montreal and the Sucht for oxy. Hey, to all y’all pretentious, tesla hugging, house flogging, netflix watching content boy scouts/girl guides out there: Take a break and experience where the life is. There are about 5 places on earth I could recommend that will tickle your toes if you allow it to. Montreal is one. Kelowna made the toenail pulling list. Just saying…gotta be honest…

Anywho, be sure to write your LWaT before you go…and keep and open mind. If ya still got one, that is.

Og

#24 Alberta Ed on 07.15.22 at 4:56 pm

Have a lawyer draw up your will. A legal firm will often probate a will for a flat retainer, assuming no complications (so keep your financial affairs simple and keep good records).

#25 Patel on 07.15.22 at 4:59 pm

I have few investments accounts ( RESP TFSA NOREG) etc.Do my children need to know these account numbers and password , if in case both of us are not surviving? We have created will and both my children have lawyers office contact info just in case.

#26 Overheardyou on 07.15.22 at 5:05 pm

Great Post Sinan!

I do have a question though, what happens to your will if the law firm/executor you picked goes out of business?

#27 everafter on 07.15.22 at 5:10 pm

a non registered account ; if it is a joint account then nothing is needed beyond that .

we have one daughter and intend to make her joint when one of us dies so its automatic .. we do have wills too ..
( yes we trust her)

#28 Ed on 07.15.22 at 5:17 pm

I think a lot more people would have wills if there was an app that would be secure and just take a video of the subject voicing his last will and testament.

After all we already are being kept healthy by apps like ArriveCan already.

Going to see a lawyer is as pathetically painful as it gets, rather get a root canal from my barber.

#29 I will be Frank on 07.15.22 at 5:22 pm

“Over half of Canadians have no will.”
It looks different once you capitalize it.
“Over half of Canadians have no Will.”

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#31 tbone on 07.15.22 at 5:44 pm

I handled my MIL estate quite easily , as she only had
gic`s and a tfsa . The bank hung onto the funds for 13 weeks before they released the money . I had to send multiple emails to the office of the president to get any action. Utter incompetence at every level.

The funeral home provided all the forms to mail in to cancel her sin # and health card and get the death benefit processed , and something else ( cant recall ).
They were very helpful. Even got a follow up call after a couple of weeks to see if i needed help with the forms.
They were pretty straight forward and i had mailed them
the day after i got them.

#32 the Jaguar on 07.15.22 at 5:44 pm

Sinan, don’t forget the biggest death tip of all: Don’t kick the bucket in expensive places, i.e. Probate Fees. Some provinces are bigger grifters than others, like BC and Nova Scotia. ( fits the overall psychological profile). You get snookered while you’re alive and snookered after you’re dead.

Tax avoidance, tax evasion, or just maybe hid those damn assets. Smoking Man used to bury bottles of bourbon and dogs bury bones. Impossible to hide mine given I’ve been sitting on physical equivalent of the Hope Diamond all these years. Sigh….

Felix:
Just ignore that old meanie poster #19 . Maybe Toronto should follow the Calgary model for keeping cats safe…..
https://catsandbirds.ca/blog/the-calgary-model/

#33 Felix on 07.15.22 at 6:03 pm

Happy Feline Friday!

Did you know:

Cats are North America’s most popular pets: there are 73 million cats compared to 63 million dogs. Over 30% of households in North America own a cat.

A cat’s brain is biologically more similar to a human brain than it is to a dog’s. Both humans and cats have identical regions in their brains that are responsible for emotions.

The world’s rarest coffee, Kopi Luwak, comes from Indonesia where a wildcat known as the luwak lives. The cat eats coffee berries and the coffee beans inside pass through the stomach. The beans are harvested from the cat’s dung heaps and then cleaned and roasted. Kopi Luwak sells for about $500 for a 450 g (1 lb) bag.

#34 Islander on 07.15.22 at 6:06 pm

Looks scary.

@RobMcLister
BREAKING: Canada’s 3 mortgage default insurers have reportedly met to discuss if they will re-qualify variable-rate applications submitted BEFORE the BoC’s big hike. If so, it would potentially kill approvals for borrowers w/ high debt ratios.

#35 Dr V on 07.15.22 at 6:18 pm

126 Linda

“My understanding is that UBI would cover basic living expenses. Why then would anyone work? So they can pay higher taxes for someone else to live off UBI? And if no one is working, where are the taxes coming from? The government could just print”
—————————————–

I did some earlier research into welfare levels across Canada. Probably a couple of years out-of-date now. But levels for single people varied from $800-$1400 a month between the provinces. Pretty low as recipients are expected to somehow survive on this.

Although some people would choose not to work, the
program would be based on the assumption that all people are employable and will choose to work to achieve an income suitable to their circumstances. The exception I see is for people with disabilities. Also not sure on how seniors would be treated, as we may wish workers to retire at 65 and entice them with an increased benefit.

What the system has to be designed for Linda, is that that huge group of mid-income earners ($40-90k?) have
negligible net effect on income with the advent of UBI.
What could happen though, is some part-timers may opt to leave the workforce, such as the lower-income spouse in a double income family with children, and save on other employment related costs and hassles. Or
they may just say “great!” and keep working for what may result in an increase in income.

So it really has to be reverse-engineered from the current spending on social programs, and even possibly
some CPP. To repeat, this is not a “social justice” issue for me, but rather an economic one.

Sinan – thank you for allowing the off-topic comment(s).

#36 jimmy zhao on 07.15.22 at 6:25 pm

Regarding Point#4 about Charities:

“WE Charity” paid $481,751 to Prime Minister Justin Trudeau’s family in appearance fees, gifts and trips to London and New York, hired then-Finance Minister Bill Morneau’s daughter and hosted Morneau’s family on $41,366 trips to Kenya and Ecuador.

I’m not leaving any money to ‘WE Charity’. They already got my money through my income tax, then funneled it to the Trudeau family.

#37 Stone on 07.15.22 at 6:32 pm

You can designate a beneficiary for registered accounts such as TFSAs, RRSPs, RRIFs, LIRAs and LIFs but you cannot designate a beneficiary for non-registered accounts so it’s best to ensure your will states designated beneficiaries for your registered accounts.

———

I would recommend you attach a copy of one of your monthly investment statements and bank account statements to the will. The investment statements show the beneficiary and contingent beneficiary, the bank account statements don’t unfortunately.

I also recommend that you look at the will and attached statements once a year to ensure they are still up to date and add/replace/remove the ones that are not.

#38 Sinan Terzioglu on 07.15.22 at 6:38 pm

#25 Patel – You should tell your children where your assets are held and keep a record of the financial institution account numbers with your will – Sinan

#39 Sinan Terzioglu on 07.15.22 at 6:40 pm

#26 Overheardyou – If the law firm you used to draft your will goes out of business your will is still valid so long as you have a copy. If your executor is no longer in business you will have to find a new one – Sinan

#40 CJohnC on 07.15.22 at 6:46 pm

#30 Safarmunirm on 07.15.22 at 5:30 pm

Translated: spam advertising for viagra in Russia

#41 Penny Henny on 07.15.22 at 6:50 pm

#9 Honey money on 07.15.22 at 3:04 pm
#3 TurnerNation on 07.15.22 at 2:48 pm

“”Speaking with a TD advisor (i’ve known this person for over 20 years) – they are being told customers will likely see a full bank prime rate of over 8% at all Canadian banks by the end of the year.””

——–

Good thing you’ve known this person for over 20 years …otherwise we’d have to question the veracity of such a statement!

BTW, I’ve known my wife for over 20 years and she claims I am a genius!
//////////////////

I’m sorry to tell you sir (I assume) your wife isn’t all there.

#42 Brea on 07.15.22 at 7:24 pm

UBI, GAI, welfare, government cheese. It is all the same BS. The only support there should be and is still not obligated is from your family if they want to help you and you accept it. If Liberals, NDP, Green Party and any other socialist, communist, marxist idiot wants to help people, use their own money they already paid taxes on and do it. Stop stealing everyone else’s money period.

#43 Linda on 07.15.22 at 7:27 pm

#35 ‘Dr V’ – I did a bit of quick research to see if I could find out how UBI might work. A pilot project (since ended) in Ontario did not include seniors as it was determined that they would receive more income via CPP/OAS/GIS than what would be provided via UBI. It looked like UBI amounts were based on LICO (low income cut off) figures, so the pilot group were getting roughly $16K per year for individuals. IF they were receiving EI or working UBI was reduced by $0.50 cents for every dollar earned. Participants could also go to school while on UBI. I’m not sure if student loans or scholarships would have resulted in a reduction in UBI received or not.

I recognize that one of the stated goals of UBI is to end poverty, but the problem with that is that UBI will not stop people from making poor financial decisions. Just look at how many folks are mired in debt despite earning a lot more than UBI would pay.

#44 Paul on 07.15.22 at 7:33 pm

31 tbone on 07.15.22 at 5:44 pm
I handled my MIL estate quite easily , as she only had
gic`s and a tfsa . The bank hung onto the funds for 13 weeks before they released the money . I had to send multiple emails to the office of the president to get any action. Utter incompetence at every level.

The funeral home provided all the forms to mail in to cancel her sin # and health card and get the death benefit processed , and something else ( cant recall ).
They were very helpful. Even got a follow up call after a couple of weeks to see if i needed help with the forms.
They were pretty straight forward and i had mailed them
the day after i got them.
———————————————————————————————
I had issues with C I.B.C. With my Fathers estate.
I didn’t wait, I contacted the The Banking Ombudsman office plus let the banks know. I Copied all my correspondence to the Ombudsman things moved along.

https://www.canada.ca/en/financial-consumer-agency/services/complaints/file-complaint-financial-institution.html

#45 Chameleon on 07.15.22 at 7:52 pm

#33 Felix

Well, I’ll tell you who’s poop has no value – dogs!

They must be amused as we pick it up, hot and soft.

Speaking of dog poop…

I was at one of the Blue Flag beaches in Toronto today – Cherry Beach. Clearly posted, NO DOGS! But what do you know, 3 or 4 dog owners are special. Their dogs are good and thus exempt from the rules of NO DOGS. Loose, no leash, in the water – the works.

When I noted to the woman that this was a dog free beach, and is clearly posted as such, she went to the usual toolbox of defence. My dog this…(oh…I should also note, the dog was off-leash). My dog that. Few swear words to me because I’m someone respectfully pointing out her disrespect for all the other people at the beach. I for example, am there because it is a NO DOG beach. Then…”You’re harassing me!” Nice. Called the lifeguard, they got by-law to clean that up.

Yeah…dog owners. I tell you you, the more I run the math on it, the more I find them to actually not be animal lovers, and also not considerate and respectful to others at all.

Half an hour after bylaw leaves, another dog on the other side of the beach, also off-leash starts running around two women sun bathing, throwing up dust on them. “Ha ha ha…” funny for the owner. But the ladies were covered in dust and decided to leave. I note to the guy…NO DOGS sign, you see it? You see people leaving because of YOUR dog?! Plus you’re off-leash. Plus your dog is dirtying up people! Have you no respect or consideration? The dog beach is one beach over I tel him. “Chill dude, I come here every day and it’s not a problem!” Really? What just happened then with the two women?

You respectful and good dog owners need to get on this issue, and ASAP. You need to help police your own community of dog owners.

These crappy dog owners are giving you a bad name.

They are like the first piece of litter that’s thrown, and then other like dog owners come out of the wood works with their littering ways. Next thing you know the place is covered in it.

YOU dog owners need to be more pro-active and stamp this out yourselves.

Set a good example.

Call out bad dog owners.

Respect the by-laws.

Respect on-leash.

Clean up your act.

Otherwise, they are turning a lot of people against ALL dog owners. And then it becomes your problem too.

#46 Wrk.dover on 07.15.22 at 7:57 pm

#33 Felix on 07.15.22 at 6:03 pm

The world’s rarest coffee, Kopi Luwak, comes from Indonesia where a wildcat known as the luwak lives. The cat eats coffee berries and the coffee beans inside pass through the stomach.
_________________________________________

Probably tastes and smells like like Second Cup coffee!

#47 Obese Kids - O.K. on 07.15.22 at 7:58 pm

So I’m at a Toronto pool.

I see a boy.

11…maybe 10…maybe 12.

Easily 80lbs overweight, if not more.

Heartbreaking.

I am not judging this child by any means. I’m simply concerned about his health. Clearly this is not healthy by any standards know to humanity.

Thought crosses my mind.

How is this not child abuse?

How is feeding garbage to a child and allowing him (in this case) to put on 80lbs of extra weight at only 11 years of age not a clear case of child abuse?

How is that not on par with physical assault on a child?

At what point should this not be allowed?

At what point should the parents be accountable?

I understand an adult deciding they will eat themselves into obesity. A decision by someone who is responsible for their actions at legal age. But a child?

Child obesity in North America is at 20%.

TWENTY PERCENT!

What do you think the next pandemic will do to our society?

Same IP as the self-appointed dog cop. You have the wrong blog, Karen. – Garth

#48 espressobob on 07.15.22 at 8:14 pm

#33 Felix

The civets that produce Kopi Luwak green are usually housed in cages and fed the cherries exclusively. This is cruel and disgusting.

Don’t buy this product. I love felines too.

https://en.m.wikipedia.org/wiki/Kopi_luwak

#49 TurnerNation on 07.15.22 at 8:24 pm

The poor ‘new guy’ (guest blogger) has to put up with all the nuts in the comments section.
Well here goes nothing.

———-
When I say “Life in our fetid, crowded UN Smart Cities.” am I joking?

https://www.bisnow.com/national/news/retail/starbucks-shutting-and-redesigning-stores-over-crime-and-safety-concerns-113750?
“Starbucks is closing more than a dozen stores in cities across the country as it works to address staff complaints about crime, drug use and safety in the Seattle-based chain’s cafés.”

https://www.blogto.com/eat_drink/2022/07/beef-jerky-protected-7-eleven-toronto/
Beef jerky now protected inside glass cases at 7-Eleven in Toronto

https://www.blogto.com/eat_drink/2022/07/toronto-supermarket-parmesan-cheese-thieves/
Busy Toronto supermarket no longer stocking Parmesan on shelves due to cheese thieves

.Toronto food banks see record number of visits in June (cp24.com)


—> What I said about the A.I. From the GF archives:

“#2 TurnerNation on 11.26.21 at 2:06 pm
Two things here. I have been saying since 2020 that the A.I. will be running the New System. (Humans might show some compassion). And then we have the inevitable layoffs as the A.I. takes over.”

https://www.dailymail.co.uk/news/article-11010077/Chinese-courts-allow-AI-make-rulings-charge-people-carry-punishments.html
“China uses AI to ‘improve’ courts – with computers ‘correcting perceived human errors in a verdict’ and JUDGES forced to submit a written explanation to the MACHINE if they disagree”

#50 Victor Llearna on 07.15.22 at 8:43 pm

Probably 70% of Canadians are broke anyways so why bother with a will and pay some lawyer $$ for nothing

#51 DON on 07.15.22 at 9:25 pm

#47 Obese Kids – O.K. on 07.15.22 at 7:58 pm
So I’m at a Toronto pool.

I see a boy.

11…maybe 10…maybe 12.

Easily 80lbs overweight, if not more.

Heartbreaking.

I am not judging this child by any means. I’m simply concerned about his health. Clearly this is not healthy by any standards know to humanity.

************

Geezus…stop being creepy at the pool.

Maybe stick to adult swim time.

#52 Unpinned on 07.15.22 at 10:32 pm

The executor of my mother-in-law’s will loves tedious paper work and long, boring chats with banks and insurance company clerks are his best case scenario. So if you are up for dull monotonous paper trail with a definite end pass up this time-consuming office admin. clerk gig.

#53 Sail Away on 07.15.22 at 10:56 pm

#50 Victor Llearna on 07.15.22 at 8:43 pm

Probably 70% of Canadians are broke anyways so why bother with a will and pay some lawyer $$ for nothing

——–

I’m pretty sure that if you pay $$ for nothing, you get the chicks for free.

#54 Dr V on 07.15.22 at 11:18 pm

43 Linda – yes Ontario tried and then cancelled the test program. But it missed the ‘U’ in “Universal” by being
targeted only at low income earners. Also, as it was administered provincially, it was really just trumped-up
welfare, with no authority to eliminate or modify
existing federal programs. Income from those resulted in the reduction in the benefit as you note.

By being universal, the benefit is always there for all, and any form of additional income would be treated
in the same manner for all. By being federally administered, the elimination or modification of other
programs should lead to a more efficient system.

So while a UBI may reduce poverty, it is not the only goal.

And yes, there is no help for some people.

42 Brea – they are already taking your money.

#55 Michael in-north-york on 07.15.22 at 11:46 pm

#125 Dr V on 07.15.22 at 3:38 pm

MMT seems quite clear that the trade-off is with inflation and confidence in the currency. So it’s a “matter of degree” to which you can tolerate or absorb those. MMT also explains how a “small/sustainable deficit” works and of course has been applied for decades – the STAB model.
===

I looked up some links, and the best I could find is:

“TABS or STAB: Conventional economic theory assumes governments must Tax and Borrow to be able to Spend (TABS), but MMT says what really happens is that governments create money by Spending and then they Tax and Borrow (STAB) to control any resulting excessive inflation.”

In my humble opinion, the difference between “TABS” or “STAB” is philosophical, but not practical. The amount of deficit one can run without triggering excessive inflation is the same, no matter how you choose to order T, B, S.

#56 Michael in-north-york on 07.16.22 at 12:01 am

#126 Linda on 07.15.22 at 4:38 pm

Michael & Dr V – respectfully, have to point out the flaw in the UBI argument. Which is ‘you just have to collect a lot in taxes’. Who pray tell is going to pay said taxes? A deficit by definition is more money being paid out than revenue coming in. My understanding is that UBI would cover basic living expenses. Why then would anyone work? So they can pay higher taxes for someone else to live off UBI? And if no one is working, where are the taxes coming from? The government could just print money/run a deficit which would not result in UBI for all & a balanced budget to boot.
===

In theory, you can set UBI to cover the most basic needs only. People who want more wealthy lives would have to work, pay taxes, and thus bankroll the UBI.

Actually I agree with you. UBI is not sustainable when human workers produce most of the added value. People will do their best to reduce their tax liabilities, even if by working less, and balanced budgets won’t happen.

My guess is that UBI will come into play when the robotization of the workplace goes far enough. At some point, UBI could become a necessity, lest the robots price all humans out of existence, and thus eliminate their own raison d’etre.

Then the model will be: tax the domestic robotic production, tax imports based on the foreign robotic production, and use the collected funds to support your human population, most of whom will no longer be able to find a job.

#57 Moshe Albertstein on 07.16.22 at 1:28 am

You’re going to die broke anyway under the insane decree of Green Fartcatchers. Read this, Morgans smarter than you and I by a factor of 1000’s, like it or not. Get smart, or die broke dummy!!

“ You’ll own nothing and be happy”

Justin Trudeau on his adaptation of ‘The Great Reset’.

https://financialpost.com/opinion/gwyn-morgan-the-disastrous-consequences-of-the-green-movement

#58 under the radar on 07.16.22 at 6:00 am

Structure your affairs so that most assets pass on death to a joint account holder or joint tenant (in the case of real estate. ) Where there is a last to die scenario inter vivos transfers with clear written instructions to the transferee works well .
Precore v. Precore – transfers to adult children are presumed to be a resulting trust held for the benefit of the estate.

The objective is two fold, avoid probate fees or estate administration tax and have your assets neatly and , for most , equally bundled and ready for distribution to avoid family feuds.

I employ a public and private will, where the assets to pass are not dependent on probate. a private will lessens the burden of estate administration tax.

Lastly , consider gifts to adult children while alive.

#59 DonCarlos on 07.16.22 at 6:35 am

Another thing to consider is step families. In case of lack of clarity, the estate goes to the step spouse, not the children. When my dad died that threw me for a loop b/c I ended up having no rights to the estate, even though verbally he had told me how the will would be drawn up. He died suddenly and didn’t get the chance to update. Fortunately my stepmom is wonderful and understanding and we were able to agree to include me in her will and apportion a reasonable amount of the estate, but that was a terrible conversation to need to have in the months following my dad’s passing, and she felt obligated to sort it out, feeling that if the roles were reversed he would have done the same for her kids. But she was under no legal obligation to do that, only a perceived moral one.

#60 Sprawl on 07.16.22 at 7:41 am

Excellent advice. Would like to suggest – adding Life Insurance polices also in the Will. In Ontario, the Attorney General’s Office can do a life insurance policy search. But it is a less than ideal search.

Plus adds protection against a nefarious act. In my personal case, an especially vexatious, estranged sibling and its nefarious lawyer, filled my Death without a Will in 1999. They made sure to steal my parents files.

If the Will filed with Estate Court, had the Life Insurance Polices listed, could have closed the loop on their fraud. As it is, Ontario’s Attorney General’s Office can only find “Current” life insurance polices and their Will sans any investments or life insurance information.

They where great parents with a marginally competent neighbourhood lawyer.

#61 Obese Kids - O.K on 07.16.22 at 9:05 am

Obese Kids – O.K

You have the wrong blog, Karen. – Garth

>>>

I don’t believe I do Sir. Allow me to explain.

First of course, is the obvious disregard for the well being of children here.

No one can tell me parents aren’t responsible and enabling this outcome of 20% obesity among children in North America.

Now, how does it relate to us here, a financial blog.

Well, you see, these obese children grow up to be obese adults.

Suddenly obesity among humanity are at levels not seen before. 2020 study in US showed 16 states have rates of obesity of 35%. THIRTY FIVE PERCENT!

Along comes a strong flu, or pandemic, and what will the result be? A disproportionate amount of illness, because we have primed ourselves with a weakening of our bodies.

Next domino is larger than usual percentage of deaths.

What follows we all know, as clearly illustrated past 2 years.

Of course obesity is not the only cause, we also know that weakening immunity due to aging is obviously in play. However, it is a significant element as clearly illustrated by data and science.

https://www.cdc.gov/obesity/data/obesity-and-covid-19.html

So, get it on early? Or wait for it to blossom into 30% child obesity? 40% child obesity? 50% child obesity?

As for the dogs, hey, I’m not part of that community, but it only makes sense that being a good citizen and neighbour and respectful of others is the way to live a life. I hardly see how owning a dog makes one exempt from that logic.

#62 Linda on 07.16.22 at 9:35 am

#56 ‘Michael’ – the ‘Rise of the Machines’ is here:) Though in point of fact it truly is. We rely on technology for our current lifestyles; outages such as the recent Rogers network outage immediately impact our system. Which is why I actually think a complete replacement of human workforce by robots won’t occur without replacing our current capitalist economic model. Call me cynical, but somehow I can’t see how robot manufacturers would manage to make a profit if people aren’t earning enough $ to buy that product. Nor can I see the robot cartel being willing to pay to keep all those non-profitable humans at home.

#63 The Real Tony on 07.16.22 at 9:44 am

Re: #5 Victor V on 07.15.22 at 2:49 pm

Tell him to get a second job.

#64 Tony on 07.16.22 at 9:59 am

As long as there’s no gift tax I don’t need a will anyway. I just give my money to my only two heirs before I kick the bucket. My guess is I’ll live to 111. They may die first or one of them might die first. I’m single and my brother is worth about 10 times what I’m worth and he has only the same two heirs. My other brother is single and worth what I’m worth and he has the same two heirs. My sister is worth twice what I’m worth and she has only the same two heirs. We’re all going to celebrate at her husband’s funeral if anyone even shows up for the funeral. Doubtful. My first cousin’s husband’s father is in the Canadian who’s who. They only have one son who was named after my middle name. He was a dead ringer for the Gerber baby when he was very young. All of the money is apparently going to him.

#65 Tony on 07.16.22 at 10:19 am

I don’t like to think about wills. My father’s aunt Kitty her husband Bruce was Vice President of Ford Motors Canada and we got next to nothing in the will. Then my first cousin Catherine rewrote my father’s sister’s will on her deathbed and took all our money that was in her original will. Instead of everything being split 5 ways it became 1 way. This was only two years after she inherited about 25 million from her mother’s will.

#66 Dharma Bum on 07.16.22 at 10:26 am

Where there’s a will, there’s a way!

#67 Tony on 07.16.22 at 11:00 am

Re: #41 Penny Henny on 07.15.22 at 6:50 pm

It looks to me like we already hit peak inflation for this year 3 days ago at least in America.

#68 Chris L. on 07.16.22 at 1:07 pm

DELETED (Anti-vaccine)