Wills & Estate Planning For Canadians For Dummies

Title Page
Copyright Page
Table of Contents
Introduction
	About This Book
	What You’re Not to Read
	Foolish Assumptions
	Icons Used in This Book
	Beyond the Book
	Where to Go from Here
Part 1 Estate Planning Basics
	Chapter 1 What Is Estate Planning, Anyway?
		Understanding What Your Estate Is
		Discovering What Estate Planning Is
		Figuring Out Why You Need to Do Estate Planning
		Getting a Handle on Estate Planning Tools
		Knowing When You Should Make an Estate Plan
		Looking After Your Needs
		Planning in Case You Become Physically or Mentally Incapable
		Getting Professional Help
	Chapter 2 What Are You Worth? Preparing an Inventory of Your Estate
		Figuring Out What You Own
		Figuring Out What You Owe
		Figuring Out Your Net Worth
	Chapter 3 The Taxman Cometh: Taxes and Your Estate
		Understanding Some Income Tax Basics
			Income and capital gains
			Capital gains
				Calculation of taxable capital gains
				If it walks like a capital gain and it quacks like a capital gain . . .
				Capital gains tax and spouses
			Capital losses
			Taxable income
				Calculation of taxable income
				Tax brackets
		Discovering How Your Estate Will Be Taxed
		Deciding What Your Tax Planning Goals Should Be
		Considering Possible Tax Planning Strategies
			Leaving everything to your spouse
				Capital property
				RRSPs and RRIFs
			Putting your money into your principal residence
				Making use of the principal residence exemption
				Watching out for complications
			Giving things away now
				Will you actually reduce capital gains tax for your estate?
				Will you actually reduce your income taxes now?
				Will you be sorry?
			Freezing your estate
				A gift
				A sale
				A trust
				A corporation
			Donating to charity
		Tax Planning That Takes Place after You Die
			RRSPs
			Capital losses and spousal rollovers
		When the Taxman Finally Arriveth . . . with the Bill
			Estimating the tax
			Determining where the money will come from
			Ensuring that the wrong person doesn’t get stuck with the bill
		Investigating Probate Fees
Part 2 Estate Planning Tools
	Chapter 4 The Mysteries of Life Insurance Revealed
		Getting Acquainted with Life Insurance
		Deciding Whether You Need Life Insurance
		Calculating How Much Life Insurance You Need
			If you need insurance to replace your income
				What will your family’s expenses be?
				What other income will your family have?
				What will the shortfall be?
				What lump sum of money will be needed to make up the shortfall?
			If you need insurance to pay a debt or expense
			If you need insurance to leave money
		Determining Who Should Get the Insurance Money
			Naming an individual as your beneficiary
			Naming your estate as your beneficiary
			Creating an insurance trust
		Deciding on the Kind of Life Insurance You Want
			Term insurance
			Permanent insurance
			Variations on a theme
				Joint policies
				Mortgage insurance
				Accidental death insurance
		Figuring Out Where and How to Get Life Insurance
			Individual insurance
				Selecting which insurance company to deal with
				Choosing an agent or broker, or buying direct
				Getting individual insurance
			Group insurance
		Finding Out How Much Life Insurance Costs
			Insurance rating factors
			Comparison shop
			Individual insurance or group insurance
		Learning What a Standard Life Insurance Policy Says
			Individual insurance
			Group insurance
	Chapter 5 Giving Away Your Things Before You Die
		Giving Away Your Property While You’re Alive
		Unwrapping Gifts
		Figuring Out How to Make a Gift
		Avoiding Giving Away Your Property without Meaning To
			A gift made against your will is not a gift
			A promise to give a gift is not a gift
			But a promise to give a gift in return for something is a different matter
		Planning So That You Won’t Live to Regret Your Gift
			Can you afford the gift?
			Will you have to pay tax on your gift?
				Reduced capital gains tax later
				Reduced income tax now
		Discovering Safer Ways Than Giving a Gift
			A loan
			A rental
			An investment
			A sale
			RESPs
		Registered Education Savings Plans and Related Benefits
			Co-ownership
			A trust
	Chapter 6 Using Trusts in Estate Planning
		Getting Acquainted with Trusts
			More about the players
			More about the property
		Deciding Whether a Trust Is Right for You and Your Family
		Investigating the Different Kinds of Trusts
			Testamentary trusts
				Spousal trust
				Trust for a minor
				Spendthrift trusts
				Special needs trust
				Trust for a charity
			Living trusts
				Creating an estate freeze
				Keeping a gift confidential
				Looking after someone with special needs
				Giving to charity
				Avoiding probate fees
		Finding a Trustee You Can Trust
			Looking at what a trustee does
			Checking out the legal responsibilities of a trustee
			Examining the powers of a trustee
			Choosing a trustee
			Paying a trustee
		Paying the Taxes Associated with a Trust
			Tax on the creation of the trust
			Tax during the operation of the trust
				Tax on the settlor
				Tax on the trust
				Tax on the beneficiaries
			Tax when your trust comes of age at 21
			Tax on the termination of the trust
		Paying the Expenses of a Trust
			Set-up fees
			Ongoing fees
			Winding-up fees
Part 3 Creating an Estate Plan
	Chapter 7 Choosing Your Beneficiaries and Executor
		Considering Your Beneficiaries
			The people you want to provide for
				Rounding up the usual suspects
				What’s your reason for giving?
				What’s the right tool for making the gift?
				Should you give to children directly or indirectly?
			The people you have to provide for
				People who are dependent on you for support
				Your spouse
				People you’ve promised to provide for
			The people you decided not to provide for
			What about your pets?
		Distributing Your Estate Amongst Your Beneficiaries
		Thinking about Your Executor
			Looking at what an executor does
			Examining an executor’s legal responsibilities
			Choosing your executor
	Chapter 8 Planning Your Children’s Future
		Understanding Guardianship
		Thinking the Unthinkable: When One or Both Parents Die
			If one parent dies but the other is still alive in a shared parenting arrangement
			If one parent dies and that parent was the only one with decision-making responsibility
				If only one person wants the children
				If there’s a dispute about parenting
				If no one wants the kids
			If both parents are dead
		Choosing a Guardian for Your Children
			Testamentary guardian
				If the other parent survives the testator
				If one parent is already dead and then the second parent dies
			Helping to ensure your choice of guardian is respected
		Looking at a Guardian’s Responsibilities
			Guardian of the person and guardian of the property
			Instructions for the guardian(s)
		Providing for Your Children Financially
			Determining where the money will come from
			Considering how the money will be managed
			Deciding who will manage the money
			Thinking about where your children will live
	Chapter 9 What to Do with Your Business
		Taking Stock of Your Situation
			You may not have a choice
				If your business is a partnership
				If your business is a corporation
			You may have options
				Looking at your business
				Considering the candidates before handing over the business
				Looking at yourself
		Timing the Market
			If you want to keep it in the family
			If you decide to sell
		Putting Your Plan into Action
			If your business is a sole proprietorship
				Keeping it in the family
				Selling outside the family
			If your business is a partnership
			If your business is a corporation
				Keeping it in the family
				Selling to an outsider
		What if You Were to Die Tomorrow?
			Someone who can step in
				Who should that someone be?
				What should that someone know?
			Insurance for your business
			In the end
	Chapter 10 Making Charitable Donations
		Thinking about Giving to Charity
			Looking at the reasons to give to charity
			Considering how much to give
			Exploring the tax advantages to leaving money to charity
				Charity that begins at home
				Charity that begins abroad
		Choosing the Right Charity
			A charity that does the right kind of good
			A charity that’s not good enough to be true
			A charity that’s on good terms with Canada Revenue
			A charity that looks a gift horse in the mouth
			A charity that won’t follow instructions
			A charity that will put your name up in lights
		Making Sure Your Donation Gets Where You Want It to Go
			Get the charity’s name right
			Guard against the charity’s untimely end
		Looking at the Ways to Give to Charity
			Gifts of cash made by will
			Gifts of specific property made by will
			Gifts of life insurance
				Donating the insurance policy
				Keeping the policy
				How do you choose the beneficiary?
			Gifts of RRSP or RRIF proceeds
			Charitable gift annuities
				What’s an annuity?
				So what’s a charitable gift annuity?
				Why buy a charitable gift annuity?
				Tax treatment of annuities
			Charitable remainder trusts
			Memorial donations
	Chapter 11 Planning Your Funeral and Organ Donation
		Understanding Who Decides on the Details
		Considering the High Cost of Death
		Pre-Planning Your Funeral
			Selecting a funeral home
			Choosing a casket
			The funeral services contract
		At Your Disposal: Earth, Air, Fire, or Water?
			Burial
				Interment rights
				The actual interment
				The monument
				Extras
				The contract
			Burial at sea
			Cremation
				How much does cremation cost?
				What to do with the ashes
			Air
		If You’re Concerned about the Environment
			The environmental impact of traditional burial, and what to do about it
			The environmental impact of cremation, and what to do about it
			Greener alternatives
				Green burial
				Alkaline hydrolysis
				Human composting
		The Gift That Keeps on Giving: Organ and Body Donation
			Consenting to body part donation
			Reviewing organ donation eligibility
			Donating your body
Part 4 Putting Your Plan into Action
	Chapter 12 Why You Need a Will
		Investigating Where Your Property Will Go if You Die without a Will
			If you’re married without children
			If you’re married with children
			If you’re not married but you have children
			If you’re not married and you have no children
			If you don’t want this to happen to you . . .
		Finding Out Who Will Administer Your Estate
			How will an administrator be found?
			The application for letters of administration
		Understanding the Difficulties That Will Arise in the Administration of Your Estate
			Limits on the administrator
				Converting property to cash
				Investing the cash
				Distributing your estate
			Increased taxes
				The spousal rollover
				The principal residence exemption
				RRSPs and RRIFs
				RRSP contributions for your spouse
				Charitable donations
			Government involvement
			Mystery beneficiaries
		Recognizing the Benefits of Having a Will
	Chapter 13 Will Power
		Looking at the Components of a Standard Will
		Translating a Will into Plain English
			Identification
			Revocation of other wills
			Naming the executor
			Leaving property to the executor in trust
			Payment of debts
			Distributing the remaining property to the beneficiaries
				Specific gifts
				Gift of the residue
				Alternative gift of the residue
				Trust for children under the age of 21
			Executor’s powers
				Turning the estate’s property into cash
				Investments
				Distribution in kind
				Dealing with minors
				Signing provisions
		Signing a Will
			The testator must be legally capable of making a will
			Legal formalities for signing and witnessing a will
				Signing
				Witnessing
				Electronic wills
				Checking out the testator’s legal capacity to make a will
		Knowing What to Do After the Will Is Signed
		Looking at What Can Go Wrong with Your Will
			At the planning stage
				Choosing the wrong executor
				Failing to take debts and taxes into account
				Neglecting your spouse or dependants
				Failing to set up a trust for beneficiaries who are minors
				Neglecting to name someone to look after your children
				Failing to plan to pass on your business
			At the drafting stage
				Residue
				Unclear wording
				Unconsidered “what-ifs”
			Insufficient power to the executor
			At the signing stage
				Signed and witnessed
				Mental competence and free will
		Considering the Dangers of Do-It-Yourself Wills
	Chapter 14 Powers of Attorney: Who’ll Manage Your Money for You if You Can’t?
		Discovering What Will Happen to Your Finances and Property if Your Physical or Mental Health Fails
			Looking after your legal and financial affairs
			Looking for help
		Examining the Different Types of Powers of Attorney
			General or specific power of attorney
			Enduring or continuing power of attorney
			Banking power of attorney
		Peering into the Contents of a Power of Attorney
		Preparing a Power of Attorney
			The attorney
			The powers
			The process
				The principal must have capacity
				The document must be signed and witnessed
				The witnesses must be eligible
				The attorney needs to know when it’s time to take over
		Knowing What to Do After the Power of Attorney Has Been Prepared
		Investigating What Happens When Your Attorney Takes Over
		Discovering What Happens to Your Finances without a Power of Attorney
			Seat-of-the-pants arrangements
			Formal arrangements
			Government arrangements
	Chapter 15 Living Wills: Caring for You If You Can’t Care for Yourself
		Understanding the Importance of Consent in Medical Treatment
		Reviewing the Law Regarding Consent to Treatment
		Looking at Treatments That Require Consent
			Treatment that prolongs life
				Cardiopulmonary resuscitation (CPR)
				Ventilators
			Treatment that eases death
		Making Your Wishes Known
			Investigating what a living will covers
				A living will names the person who will speak for you
				A living will may cancel a previous living will
				A living will may list what health care decisions can be made
				A living will gives instructions about health care treatment
				A living will may give instructions about organ and tissue donation
			Making a living will
				You have to be legally capable of making a living will
				Not everyone is eligible to be a substitute decision maker
				Formalities involved in making a living will
			Knowing what to do after you’ve made a living will
		Understanding What Happens When Your Living Will Comes into Effect
		Considering Possible Arrangements if You Haven’t Made a Living Will
			Finding a substitute decision maker
			Appointing a guardian of the person
				What can a guardian of the person do for you?
				How do you acquire a guardian of the person?
	Chapter 16 Getting Professional Help
		Understanding Why and When You Need a Lawyer
			When you’re planning your estate and your will
			When you start to put your plan into action
			When it comes time to put pen to paper
			After you’re gone
			Knowing what type of lawyer you want
			A lawyer who knows something about wills and estates
			A lawyer you like . . . or at least don’t loathe
		Finding the Lawyer for You
			Get recommendations
			Investigate
			Interview
		Understanding How Lawyers Charge for Their Work
			Billing at an hourly rate
				What’s the rate?
				Retainers
			Charging a flat rate
			The bottom line
		Knowing What to Expect of Your Lawyer
		Dealing with an Unsatisfactory Lawyer
		Getting the Most from Your Lawyer
		How Your Lawyer Can Help You Assemble Your Team
		What about a Sort-of Lawyer?
		Working with a Professional Accountant
			A chartered professional accountant
			Understanding how accountants charge for their services
			Finding an accountant
		Determining Your Game Plan with a Financial Planner
			Understanding how financial planners are paid for their services
				What’s the quality of the service you get?
				What’s your game plan?
			Finding a financial planner
			Knowing what to do if your financial planner messes up
		Relying on Banks, Trust Companies, and Credit Unions
		Getting Acquainted with Life Insurance Agents or Brokers
			Understanding how agents and brokers are paid for their services
			Finding an insurance agent or broker
	Chapter 17 Using Online Will Services
		Online Will Services — an Overview
		Advantages of Online Will Services
		Disadvantages of Online Will Services
			There’s no actual estate planning
				Considering your entire situation
				Thinking about your spouse and dependants
				Taking taxes into account
				Deciding who to appoint as your executor
				Deciding who to appoint as a guardian for your minor children
			There’s no one to confirm that your will does what it needs to do
			There’s no help in executing your will
			There’s no recourse if something goes wrong
		When Not to Use an Online Will Service
		When Is It Okay to Use an Online Will Service
Part 5 Readying Your Estate and Keeping It Up to Date
	Chapter 18 Don’t Leave a Mess Behind: Putting Your Affairs in Order
		Preventing Your Death from Causing Confusion in Your Family
			Before you die
			After you die
		Organizing the Documents and Instructions Your Family Will Need
			If you become incapacitated before you die
			After you die
		Assembling the Documents Your Executor Will Need
			The duties of an executor
			Making your funeral arrangements
			Collecting information about your estate
			Applying for letters probate
			Protecting the property of your estate
			Gathering in the property of your estate
			Making an inventory and valuing the property of your estate
			Paying debts and taxes
			Distributing your estate
		Keeping Your Documents Safe
	Chapter 19 It’s Even Better the Second Time Around: Updating Your Estate Plan
		Discovering What’s Involved in Reviewing Your Estate Plan
		Learning Why and When You Need to Review and Revise Your Estate Plan
			Changes in your personal life
				If you get married
				If you enter into a marriage-like relationship
				If your spouse dies
				If your relationship breaks down
				If you have children
				If you develop serious health problems
				If a family member develops special needs
				Changes in your residence
			Changes in your executor’s life
			Changes in your financial and economic life
				Changes in the nature and value of your property
				Changes in your business
			Changes in the law
				Tax law
				Family law
				Succession law
				Other areas of law
		Changing Your Will
			Making a codicil
			Revoking and replacing your will
			Choosing between a codicil or a new will
		Updating Your Pensions and Insurance Policies
			Life insurance policies
			Pension plans
			RRSPs and RRIFs
		Revising Your Power of Attorney and Living Will
			Power of attorney
			Living will
Part 6 The Part of Tens
	Chapter 20 Ten Questions to Ask Before You Hire a Lawyer
		Ask the Lawyer
		Then Ask Yourself
	Chapter 21 Ten Tips for Using the Internet for Estate Planning
		Getting Financial Planning Help
		Finding Income Tax Info
		Looking for Insurance Help
		Locating Legal Information
		Getting Government Information
		Finding Help with Funeral Planning
		Looking into Organ Donation
		Investigating Charities
		Researching Your Living Will
		Checking Out Online Will Services
Part 7 Appendixes
	Appendix A Prepare to Meet Your Lawyer
	Appendix B Instructions for Your Executor
	Appendix C Inventory for Your Executor
Index
EULA