The Rural Voice, 1999-01, Page 37hands of someone you didn't intend
to benefit financially, while those
you care most about could be left
with inadequate resources.
If you don't have an estate plan,
sit down with your financial and
legal advisors and put one together
right away, experts say. If you do
have one, make sure it's up-to-date
and continues to reflect your wishes
and financial situation.
It's not something we like to think
about. but are you ready to manage
your finances if your spouse dies?
The sudden death of a spouse
can create new and immediate
financial responsibilities, says
the Investors Group. The situation
can be especially difficult for a
surviving spouse with little financial
knowledge, especially since this is
occurring .at a time of tremendous
emotional upheaval.
Nothing can make the financial
transition from partner to widow or
widower an easy one. But it can be
simpler if you're aware of some of
the financial obligations and tasks
you could fAce when your spouse
dies.
Investing your inheritance: If you
suddenly find yourself with cash or
investments, these assets will have to
be managed. Stick to short-term
investments until you make long-
term plans. Pay close attention to
registered investments, such as
Registered Retirement Savings Plans
or Registered Retirement Income
Funds, which can usually be rolled
over into your own plan without tax
consequences.
Proceeds from insurance policies
and pensions: If you're the
beneficiary of your spouse's
insurance policy, you'll be receiving
additional cash. This fould also be
invested.
If .you're entitled to benefits from
your spouse's pension plan, contact
the plan's administrators to discuss
your entitlement. Paying the bills.
You'll have funeral expenses to pay,
as well as any outstanding bills in
your spouse's name. You may also
have to deal with creditor until the
estate is settled. Household accounts
must be switched to your name.
Filing your spouse's final tax
return: Revenue Canada requires
that a "terminal" year income tax
return be filed on behalf of your
spouse to report income up to the
date of death. There may also be
other returns to file. Your tax
situation will also require a thorough
review.
Settling estate taxes: There are no
estate taxes in Canada, but they could
apply if your spouse owned property
in another country.
Making business decisions: If you
inherit an interest in a farm or
business, you'll have some important
decisions to make. Do you want to
play an active role in the business or
arrange for someone else to run it, or
is it better (or possible) to sell out?
Arranging credit: If you've been
relying on your spouses' borrowing
power throughout your relationship,
you may find yourself without credit.
When you apply for a credit card or
loan, a lack of a credit rating will
stand in your way. Be prepared.
Once you've handled the
immediate responsibilities, you'll
have to take a good, long-term look
at your finances. Your assets and
goals will change, so your financial
plan should be adjusted to reflect
your new reality.0
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