HomeMy WebLinkAboutThe Citizen, 1997-04-23, Page 9THE CITIZEN, WEDNESDAY, APRIL 23, 1997 PAGE 9.
4 ways to prepare a better will
It's a good idea for everyone to have a will, no
matter how rich or poor they are. A will should cover
at least seven key points to avoid difficulties in the
future.
Seven Key Points
1. Make sure only one will exist.
2. Determine who you would want as your executor.
3. Carefully plan for your dependents.
4. Name a guardian for young children.
5. Detail specific monies or gifts to relatives, friends
or charities.
6. Consider what people or organizations should
receive the residue of your estate.
7. Put in writing the details of your funeral
arrangements.
After you have taken care of these basic issues, you
may want to consider a few other areas.
A will is more than a simple outline of the final
distribution of property and effects. It is an occasion
to carry out your plans for financial support for people
and projects that you have actively supported during
your lifetime.
It can also be the time to finally help those people
and groups that you always intended to support but
didn’t have the resources to do so.
A Better Will
Four important points will help you make a better
will.
How often you do this will depend on the wording of your
original will and how significant the changes in your
circumstances are. Certainly, anything that is not specifically
detailed in your existing will should be noted now.
B. Changing lifestyles and interests
If you have not examined your will in a number of years,
you may want to consider whether it adequately covers'your
current lifestyle, attitudes and interests.
People realize that if they have retired or have changed
occupations, or even if their family situation has changed,
they may want to reconsider the terms of their wills.
Many people who could not financially support groups like
Greenpeace to the extent they wish during their lifetime, use
the opportunity of their will-planning to consider a specific
bequest or a percentage of the residue of the estate to support
this good work.
C. Think it over: it's your will
While everyone involved in estate planning agrees with the
urgent need to make a will, remember that it is, in fact, your
will. Consider your own wishes and feelings.
Simply put - a will is an important document but if it does
not express your wishes, it is not done well.
Talk it over. Consider the future. Make a draft. Think
again. Your will is probably one of the most important, and
personal, documents you will ever prepare.
D. Consult a lawyer
Experts strongly recommend that you seek the advice of a
lawyer when making out your will.
Getting Rid of those
April Tax Blues
By Linda Henhoeffer
Financial Advisor
April is a cruel month. After months of cold and snow, Mother Nature
gives us one or two warm and sunny days. This gets our hopes up that
spring has arrived, but then she teases us with a fresh blanket of snow.
Winter's last call is not nearly as frustrating though as having to file our
annual income tax return by April 30. For something that was supposed to
be a 'temporary' measure to raise funds to finance Canada's World War I
expenses, income tax has grown deep roots in our lives!
Make Changes Now
It is too late to change our income tax payable for 1996. The best we
can do is to make certain we are filling out the tax forms properly and
taking advantage of every option available to us. This is where good
record keeping pays off.
NOW js the best time to make changes in our finances to reduce the
income tax paid for 1997. A good gardener plans their garden in the fall
and winter months. When spring does arrive, the gardener is ready to put
seeds in the ground. Taking actions now will mean a less taxing April
next year.
Do Your RRSP Early
Making our RRSP investment early means our money is invested longer
and has more time to grow. Consider investing part of your income tax
refund to get a head start on your 1997 RRSP. Or, make monthly
contributions to take advantage of 'dollar cost averaging'. Another benefit
to doing your RRSP now is that you will probably get more time and
attention from us investment advisors than in our busy January and
February months.
Reduction at Source
Many of us deliberately pay extra income tax during the year so we will
have a fat refund cheque. We usually take the refund and 'treat' ourselves
to something special. Meanwhile, the government laughs all the way to
their vault. We have willingly loaned our money all that time to the
government interest free!
The best income tax refund is NO refund. Our goal should be to pay the
least amount of tax throughout the year and to 'come out even' when filing
our income tax return in April. If we can prove to Revenue Canada that
we are paying too much income tax because we are deliberately choosing
actions to reduce our taxes, eg. making monthly RRSP contributions, then
we can apply to Revenue Canada to have our payroll taxes reduced on
each paycheque. This form is called a 'Reduction at Source'. The extra
dollars on each paycheque makes the monthly RRSP contribution easier.
Think dividends, not interest
Investments outside the tax sheltering of RRSPs cause an income tax
headache. For example, every penny of interest earned is taxable. Because
the federal government would like us to invest our savings in Canadian
companies, they encourage us to do so by giving us a tax break on
dividends. Dividends are the profits made by companies that are divided
among their shareholders.
So as we plod through this difficult month of April with its lingering
snowflakes and endless tax forms, we need to reassure ourselves that
spring will come. We will soon be planting our gardens and we will make
changes so next April will be less taxing.
A. Update your will
If your financial circumstances have changed
significantly as a result of purchases,
investments, inheritances, inflationary
increases, business growth, etc. you should
reflect these changes in your will.
Why? Laws about will-making and taxes can vary from
province to province. The specific wording needed to ensure
that your wishes are carried out may require the help of a
lawyer. A small mistake in a homemade will might cause
complications in carrying out your wishes. And remember, a
simple will need not be expensive.
Making your home equity work
If you're a homeowner in need
of ready cash, you may be
overlooking the most significant
financial resource within your
reach - the equity in your home.
In fact, accumulated equity - the
difference between the value of
your home and what you still
owe on it - is one of the major
sources of wealth among mature
baby boomers. Yet, some $562
billion of this equity remains
untapped by homeowners.
"For some customers,
leveraging the equity in their
home to buy a vacation home, an
income-generating property,
renovations, mutual funds,
stocks, or to consolidate debts, is
the most astute and viable
borrowing option available,"
says Dina Vardouniotis, a
marketing manager.
"Home equity borrowing gives
many customers the maximum
control and flexibility over their
long-term or multi-purpose
borrowing needs."
Homeowners with at least 25
per cent equity in their homes
can borrow against it through a
home equity advantage. Once
approved, they have a pre-set
borrowing amount which can be
structured as personal loans and
Best GIC Rate
6.375%
5 yrsI as of Apr. 21/97
A VESTMENTS
524-2773 Goderich 1-800-265-5503
lines of credit or combinations of
both. Plus they can switch
between personal loans and lines
of credit as their borrowing needs
change, or to take advantage of
changes in interest rates.
Home Equity Advantage makes
it easy to borrow - apply only
once for all of your borrowing
needs and write your own "loan"
when you need it.
E1MOTT INSURANCE BROKERS
MMITED
INSURANCE IN a 1.1 BRANCHES
Home Farm Business Auto Life Disability
INVESTMENT CENTRE
137 Queen St. S.
Blyth, Ontario
NOM 1H0
Affiliate
519-523-44811519-523-4251
FAX 519-523-9189
RES. 519-523-4323
DIVIDEND INVESTMENTS
* earn regular income
* pay less tax
*.many excellent choices
For information, call
Linda Henhoeffer
1-800-667-3887
335-3887
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