a guide to investing within a trust

A Guide to Investing Within a Trust

The trustee of a trust has an obligation to maintain the trust, however has no financial gain to be made from the trust. A trustee has the obligation to manage the trust as per the guidelines stipulated in the trust and to carry out any transactions the trust may be involved in. All actions of the trustee must be to the benefit of the beneficiaries of the trust, who are the only ones entitled to any money from the trust. There may come a time when the trustee decides to invest parts of the trust in order to further the growth of the funds. In this case, the trustee is bound by law and the trust deed in how they are to invest the money. Should the trustee ever be questioned or taken to court over an investment, the courts in Ontario will typically survey three main points surrounding the investment.

A Trustee’s Role

A trustee cannot take unnecessary risks with trust funds. All investments must be educated and responsible. The trustee cannot risk the funds that legally belong to the beneficiaries on investments that would not be approved by a prudent financial investor.

Does the Trustee have Permission to Invest the Trust Funds?

The trustee deed will be the guiding documents for if the trustee is entitled to invest funds or not. The deed will be the first document reviewed in the event of any possible litigation surrounding trust investments to determine if the trustee acted in good faith or if they acted outside of their guidelines.

All Investments Must be Fair to all Beneficiaries

In the trust deed, the term likely to be used is “maintain an even hand” or otherwise to keep all transactions even amongst the beneficiaries so one does not benefit more than another. It is important that the trustee reference the trust deed in order to determine what the investment guidelines are. In some situations the even hand rule may not apply, but if the trust deed is silent to this point the trustee must exercise the even hand rule.

Being a trustee of a trust is similar to being a director in a company; although directors have no ownership of the company, they operate in the best interest of the shareholders. Trustees must operate in the best interest of the beneficiaries and follow all rules laid out when investing trust funds. For further information on how to invest within a trust, contact your financial advisor at The Beacon Group of Assante Financial Management Ltd.

what is digital estate planning

What is Digital Estate Planning?

Estate planning is no different from any other industry when it comes to the need to update its practice in order to accommodate the changing digital world. Transferring ownership of digital property owned by an estate is becoming a problem in the online world. It’s quite common for people of any age, but even those well into their 70s, to own online accounts or websites that either generate income or have monetary value that forms part of their estate when they pass. The challenge executors continue to face is gaining access to these accounts and funds in order to liquidate them, transfer ownership, or shut them down out of respect for the deceased. It is not always a matter of liquidating accounts; sometimes it can be simply closing an email account in order to protect it from potential infiltration and hacking.

New questions and hurdles are constantly surfacing from executors as online ownership becomes a more common thing. But how do you plan for it?

Estate Planning in the Modern Age

If you do a lot of business online, you likely know your way around the computer. No one is more familiar with your online holdings than you are, and once you pass it may be difficult to track down all of the sites and accounts you have online. As you start your estate planning preparations, create a chart that outlines what domains you own, what online accounts you have in your name, and anything pertinent on the internet that will need to be addressed when you die. Include passwords and any information required to access each item. This chart, once completed, will become a codicil to your original will because the chart is likely to undergo modifications over the years as your online presence changes.

Online companies pride themselves on their asset protection and are not willing to transfer ownership easily. It’s such a new thing in the estate administration world that the online companies haven’t quite figured out the best process for allowing access while protecting their privacy standards.  Many internet-based companies are coming across this problem and are creating policies in order to deal with digital estates. Be certain to follow individual company policies and complete the required forms. Proper compliance with their fresh new policies is the best way to ensure a smooth transition of ownership. Remember it’s relatively new territory for everyone so it’s important to exercise patience as much as possible.

As a busy business person, it may not seem important to document your online ownership records to leave behind as a guide for your surviving family or friends. However in so doing, you can help to ensure your online assets are protected and available for your family should they require. Talk to a financial advisor at The Beacon Group of Assante Financial Management Ltd. to find out more about how to plan for your digital estate.

why date night is important

Why Date Night is Important

Mornings are hectic and evenings are filled with commuter traffic. It seems like every minute in between is consumed with meetings and business obligations, by the time you get home and have dinner you are exhausted and ready to curl up in front of the TV. But your children have homework and your spouse needs you to clean out the garage. It seems like you never get a moment of downtime. Considering you don’t have much time to yourself, it’s likely you don’t have much time to spend alone with your spouse, either. It is important that you allocate enough time in your busy schedule to go on dates with your spouse and spend quality time together. Here’s why:

Gets Your Mind Off Work

Work can be an ever-consuming thing that gives you hardly any down time. When you’re brushing your teeth for bed you are thinking about the office, when you’re driving home from the dentist you’re thinking about deadlines. Wouldn’t it be nice to occupy your mind with thoughts of a romantic date night with your loving wife? Spend a few minutes in your busy day researching the newest and hottest restaurant in Calgary or previewing movies to see what strikes your interest. Having a distraction from the daily grind can really help ease stress levels and increase excitement for the upcoming date night.

Allows You to Show Appreciation for Your Spouse

Your spouse works hard too, and it is important to show them that you are appreciative and thankful for everything that they do for you and your family. Planning a date night is an excellent way to give your spouse a night out and away from the demands of the kids and house. Your spouse is looking forward to the night as much as you are halfway through the day, you can count on it.

Reminds You Why You Got Married in the First Place

Sometimes in the shuffle of work and life, you forget about romance and the reasons why you fell in love and got married. Too often relationships suffer due one or both people being overworked. It’s important to set aside time to focus on each other and rekindle the love that brought you together in the first place. Rejuvenate your relationship by having frequent date nights that you can always count on and anticipate in times of high stress.

With everything you have to deal with in a day, the idea of having a regular stress-free night with the man or woman who stands by you can be the light at the end of your work tunnel.

business planning at every stage

Business Planning at Every Stage

Whether you’re a budding entrepreneur, or already have a thriving business that’s seeking to grow and expand – a good, solid business plan is the essential component to have in your arsenal during each and every phase. That means, of course, that a thorough plan must be developed right from the beginning. It’s also equally as important to maintain those analytical thoughts and decisions down the road to ensure the vision you foresee for your business is indeed the path on which you travel. Here’s why a business plan should be with you every step of the way.

Small Start-Ups

It doesn’t matter what the scale of the business is that you may be seeking to operate. Even if it’s a two-person operation originating from your own home, you need to have a plan in order to help you develop your ideas and goals into tangible action. You’ve got to be exceptionally analytical of everything including your own abilities and weaknesses. That way you can find alternative means to strengthen those weaknesses. But until you have that plan set, those thoughts and goals will stagnate as conceptual ideas.

The Established Business

You’ve graduated from the initial start-up phase and grown into an established business – what now? It’s certainly not time to let go of your sights and plans. Instead, it’s the perfect time to revisit those blueprints, reanalyze them, and alter them to incorporate all of that growth you’ve experienced and will hopefully continue to enjoy. This is the time to really reflect on your business and create new strategies for continued growth.

The Final Stages

Maybe you’re at a point where you’ve owned and operated your own business for years, and now, you’d like to start winding down and creating a succession plan or planning for retirement. Now is the time, once again, to begin assessing your situation and your desires. Do you want to sell, transfer the business, or close it all together? Keep in mind all of the legal factors and documents that these processes with entail. These are important questions that must be asked when the time comes to move onto the next stage of your life.

No matter what the size and scale of your business maybe, from beginning to end, a business plan should be with you every step of the way. A business plan is the blueprint and foundation for everything. Spend the time and effort in solidifying your goals by turning those ideas into tangible action with a business plan.

At The Beacon Group of Assante Financial Management Ltd., we understand that your business is your retirement plan. You’ve worked hard to build it to where it is, and a business plan is one part of ensuring success. Next, you need to create a complete plan for the next stage, whether that is selling your business or transferring it to the next generation. Contact your financial advisor to learn more.