Blair Lowry | ARTA Pension & Financial Wellness Committee Member

by Garry R . Duncan and Andrew G . Duncan , Published by Carswell . 8th Edition . © 2019

Garry Duncan was a senior tax partner with BDO Dunwoody LLP and retired in 2005 . Andrew Duncan is an estate and trust advisor with the Private Client Group of a Canadian bank .

When I Die is an essential tool to help you minimize the costs that may arise on your death and understand the financial impact of dying . It can be used as a guide to facilitate the organization of your estate while you are still alive and act as a source of information for your loved ones after you depart .

Chapter 1 deals with the will . Over fifty per cent of Canadians do not have one . This means they probably don ’ t have a Power of Attorney or Personal Directive either . Probate in Alberta is relatively cheap ($ 525 maximum for estates over $ 250,000 ). Owning property in joint tenancy can avoid probate . Annuities and life insurance are not subject to probate fees . Registered plans left to a spouse or partner will not cause an income tax liability . The authors also discuss trusts , which changed with the 2016 tax laws . Donations and charitable giving can be included in the will and can be tax efficient .

Chapter 2 covers the funeral . Since funerals are for the living , a prepaid funeral helps to take stress away from the survivors and will likely cost less . Funerals in Alberta average in the $ 15,000 to $ 17,000 range . Another thing to consider is body and organ donations .

Chapter 3 looks at estate liabilities , which may include the funeral , probate fees , credit cards , lines of credit , loans , mortgages , rents , deferred payments , property tax , and income tax . Also , your death will cause banks to freeze your accounts ( unless they are joint ). This can make it more difficult for the executors to handle the liabilities of the estate .

Chapter 4 deals with estate assets . The estate will have a net value of assets minus liabilities . Types of assets include cash , real estate , home , cottage , timeshare commitments , investments , life insurance , annuities , family business , and trusts .

Chapter 5 is a short discussion of contracts and agreements . It covers partnerships , shareholders , royalties , and class actions .

Chapter 6 is about tax returns . The CRA publication T4011 “ Preparing Returns for Deceased Persons ” can be very useful . If the death occurs before November 1 , the deadline for filing is April 30 of the following year . If the death occurs after November 1 , the return must be filed within six months .

Chapter 7 looks at life after death . The authors discuss testamentary trusts , capital property , registered plans , and post-mortem planning . It is not uncommon for surviving spouses or partners to review their own will to see if it contains what they want .

Chapter 8 is titled “ Last but not Least .” You should plan to notify any organizations you belong to . There is nothing like having everything filed on your computer , but can anyone else access your files ? Plan how to pass on usernames and passwords . You may want to make a list of entities that should be informed once you have departed .

Blair Lowry taught physical education and mathematics for thirty-five years , followed by five years of adult literacy , numeracy , and technology . Like many of us , he ’ s eager to travel again .

Available at the ATA Library , Barnett House , Edmonton

news & views SPRING 2021 | 29