Beneficiaries and Executors
and Planning, Oh My
The beautiful part of registered plans (RRSP, RRIF, TFSA) is that you can specify who you want the money to go to when you pass away by designating a beneficiary. In most cases, that someone is your spouse and the government allows it to happen tax-free. During review meetings, that is something we look at. Late in 2019, I met with clients who had a 9 year age gap in the wife's favor. His beneficiary was her and hers was the estate. I suggested we change that and was met with "No need, he'll go before I do".
In June of 2020, she passed away. Her entire RRIF was paid to the estate. 100% of it was taxed. 100% of it was subject to probate fees. The surviving spouse didn't receive the proceeds until just a few months ago. And what he did get was about 60% of what she originally had invested. Regardless of when you THINK you're going to go, we need to make sure all your beneficiaries are set up properly. Give us a call and we're review everything.
This year, one of my first ever clients passed away. His beneficiaries were set up properly and the surviving spouse is ready to receive the assets. There was one hiccup though; his will specified 2 executors, his wife, and his son...who had moved to Vancouver. When completing a death claim for investments, the executors need to sign a bunch of forms and some of them need to be notarized. We had to meet with the wife, have that paperwork notarized, send the original forms out west, and wait for them to come back. Needless to say, it's been 4 months since he passed and we are still waiting to move the money around.
Please make sure that if any executors you have designated have moved, predeceased you, or just don't like you anymore, you make the appropriate changes to your will. It will save your loved ones months of waiting and
If you need something done, have a concern, or something is worrying you financially, call the office or email me at ken@selectpath.ca. If you want to book a meeting, please use our online calendar.
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