Greenfeld Financial Management

Thinking about what kind of legacy you will leave behind? If you are, consider these seven sins of estate planning:

1. Not having a valid will in place
Dying without a will in Canada means your assets will be distributed according to provincial laws, and someone needs to apply to the courts to become an Administrator.
2. Inappropriate choice of executor/trustee
An executor should be someone who has the ability and time to deal with the estate. Do not appoint your adult child if they don’t have a suitable the skill set.
3. Overlooking sentimental value
If your estate includes sentimental items such as a family cabin, leave clear instructions for their distribution. Do not leave it up to the executor to decide.
4. Lack of care in registered products
Registered accounts in BC such as RRSPs, RIFs, and TFSAs can bypass a will but failing to name a beneficiary subjects them to probate fees and potentially significant taxes.
5. Blended family challenges
If your estate plan includes a blended family, a life insurance policy with irrevocable beneficiaries can help guarantee that children receive their intended inheritance.
6. Simplification of asset distribution
Naming beneficiaries on specific assets ignores the fluctuation of asset values and tax consequences. One solution is to have a life insurance policy designed to cover estate taxes, ensuring equality amongst the children.
7. Overlooking Healthcare and financial issues while you are alive
Representation Agreements and Powers of Attorney (POAs) ensure someone can manage your health, financial and legal matters for you.

Read in more detail on my blog: https://www.greenfeldfinancial.com/post/the-seven-sins-of-estate-planning

Wishing you all a great labour day today! Hopefully you get a chance to enjoy spending time with family and friends in your part of Canada!

If you are a homeowner, you have experienced the mortgage insurance discussion with your banker. If your down payment is less than 20% of the home’s purchase price, then the insurance becomes mandatory. If not, there are many better options.

Mark and Sarah, a couple in their mid-30s are contemplating purchasing a two-bedroom townhouse. After some disciplined saving, they have a 25% down payment of $212,000. When meeting with their mortgage specialist, he suggested adding mortgage insurance in case they couldn’t make the payments.

When your lender offers you insurance, what your lender is really asking you to do is protect their company. The coverage is designed as creditor protection and the benefits would be used to pay off any remaining mortgage balance, no matter what other needs you have.

Synergy® – Protects you, not the bank!
Unlike traditional mortgage insurance that primarily protects the lender, Synergy® is designed with Mark and Sarah in mind, offering greater flexibility and complete control over their coverage. Synergy is a 3-in-1 plan that covers life, critical illness or disability, all under one plan. They can choose from $100,000 to $500,000—this becomes their pool of funds. If life takes an unexpected turn, the benefit is paid out from that pool.

Purchasing Synergy® put Mark and Sarah in the driver’s seat
If something were to happen to either of them, they can now decide how to best use the proceeds of the policy rather than giving the bank the ability to determine how to use their money.