Avoid Family Estate Conflicts with These 5 Strategies

It’s every parent’s dream to be able to pass along their legacy and leave something substantial and meaningful behind for their family. However, if you don’t tread carefully when creating your inheritance plan, you could end up inadvertently causing resentment between siblings and altering the family dynamic. To ensure everyone is happy and that you’re remembered exactly how you want to be, avoid family estate conflicts by using these five strategies.

Call Family Meetings

A simple way to avoid catching your family off guard with your inheritance decisions is to hold family meetings. Talking directly to your children about your plans and asking for their preferences can help prevent any surprises that may leave people feeling hurt or angry. Opening up the communication channels will allow your children to at least negotiate amongst each other. This could make it easier for you to distribute your belongings without causing any conflict to begin with.

Create Detailed Instructions

The majority of family arguments center around how the personal property is distributed when a parent passes away. You can avoid causing family drama over your belongings by creating a detailed list of instructions. This should outline in detail who will inherit what and then add it into your estate plan so that your executor can appropriately carry out your wishes once you are gone.

Adjust for Gifts and Loans

If you loaned money to one of your children to help with their tuition or a business, you should adjust for this when you plan your inheritance. If you don’t, one of your other children who didn’t need support may become upset feeling as if they’ve lost out.

Appoint a Mediator

Even when you’ve tried your best to please everyone, emotions run high during times like these. If there was a previous dispute between siblings or if this is your second marriage (or third) it may be wise to hire a third-party trustee who can mediate if a disagreement arises or conflict breaks out.

Have a Professional Create Your Estate Plan

Having a well thought out and strategically-formed estate plan ensures that your wishes are appropriately expressed. This allows you to provide adequate support and financial stability for your family in the manner you desired. When you work with a financial advisor, you’ll receive advice and solutions that help maximize your estate’s value, distribute your assets as planned, and minimize any taxes so that your beneficiaries receive the intended amounts. They’ll even help you leave a lasting legacy that you’ll be remembered for.

The best time to plan your estate is now. If you’re looking to create an estate plan that will create the most value and avoid family estate conflicts, we at The Beacon Group of Assante Financial Management Ltd. can help you. We’re here to help you understand how the decisions you make today will impact your estate in the future.

Want to Take the Trip of a Lifetime But Don’t Know Where to?

Being able to finally take that trip of a lifetime that you’ve planned and worked so hard for can be one of life’s most rewarding experiences. With such high expectations riding on this type of trip you, of course, want to make sure it’s everything you hoped it would be. That’s why it’s wise to spend some time figuring out the type of experiences that you enjoy most when travelling, whether it’s adventuring, seeing exotic landscapes, or immersing yourself in foreign cultures. If you want to take the trip of a lifetime but don’t know where to go, here are some of our top suggestions to help get you inspired.

The Galapagos Islands

Noted as one of the most magnificent natural formations on earth, the Galapagos Islands are a place everyone should strive to see at least once. These isolated islands were formed millions of years ago and used as the inspiration for Charles Darwin’s infamous Theory of Evolution; you can witness an abundance of the rarest animal and marine life that you won’t find anywhere else on earth. If you’re a fan of Darwin’s work, or just love the natural world around us, you’ll be in heaven on these ancient islands. You can spot giant tortoises, lizards, exotic birds, and so many other rare creatures throughout your days exploring.

The Amazon

You’ve seen it in movies, you’ve heard Attenborough describe it on Planet Earth. Now, just imagine seeing it up close and in person. This region of the world is what many refer to as the “heartbeat of the planet” since it’s the most biodiverse region in the world. That’s why it makes our list of places that are fitting for a trip of a lifetime. Spanning over 3.3 million square miles, this gigantic rainforest is bubbling with millions of weird and amazing species, thick jungle, and even some remote indigenous tribes. This tropical wonder is guaranteed to be one of the most surreal destinations you visit.

Iceland

If you’re an adventure-seeker, then Iceland is another hot spot that’s worth exploring. The Icelandic landscape is one full of immense natural beauty: with its towering glaciers, volcanoes, geothermal lagoons, waterfalls, and of course legendary Northern Lights. Many who’ve been there describe it as feeling as though you’re on another planet. Common things to do in Iceland include renting a car and taking an epic road trip around the country or exploring in the mysterious capital of Reykjavik to enjoy one of Europe’s more dynamic and intriguing cities.

Antarctica

If you’re ready for a true trip of a lifetime, then you need to visit Antarctica. This ice-covered landmass at the bottom of our planet is the only continent on Earth that has never been permanently inhabited, and for good reason. Even during the Antarctic summers (the only time you can travel there), you should dress for skiing in January. The desolate and barren landscape of frozen husks and shifting ice will fill you with a feeling of solitude and perspective that is sure to reset your mind and make you appreciate all that you have. Adventurers who choose to cross the Drake Passage (the roughest part of ocean in the world) will experience a harrowing journey that is sure to satisfy any adrenaline junkie.

No matter where you choose to travel, be sure to think long and hard about what you want to accomplish with this trip. If you plan on experiencing the journey of a lifetime, you’re likely not aiming to lounge on a beach by the open bar for a week. Think about your aspirations and interests — what can you do, and where can you go to enlighten yourself? What will you remember for the rest of your life?

Self-Employed? Here Are 5 Tips to Help Nail Your Taxes

Being your own boss has its perks, but it also comes with additional responsibilities. Taxes, being one of them, can be particularly complicated and confusing when you’re self-employed. It’s wise to talk to a professional who can help you plan, organize, and submit your forms to avoid penalties from the CRA. If you’re in need of some financial advice, check out these tips to help you nail down your taxes when you’re self-employed.

Claiming Expenses

To receive the most significant return from your taxes, you need to learn how to keep track of your money, and what you can and cannot deduct. Even if you have an accountant, it’s absolutely necessary to learn tax basics and to properly keep track of all your invoices, contracts and receipts so that you keep your personal and business accounts separate.

To give you an idea of the types of expenses that you can claim, we’ve listed some that the CRA permits: wages, start-up costs, interest on loans, insurance costs, advertising expenses, business meals and entertainment, office supplies and equipment, professional memberships, phone and internet costs, as well as courier fees to be expensed, just as long as it relates to work.

If you work from home, you can also claim a proportion of your deductions for your mortgage interest, property taxes, insurance and utility bills. When it comes to filing, even the smallest expenditures should be submitted as you may be able to get a deduction for some of it.

Check the CRA Guidelines

Under the CRA, you can deduct any reasonable current expense that you pay to earn business income. That means if you’re a freelance reporter who frequently appears on TV, you are eligible to write off your new suit, tie, and haircut, just as long as the expenses fit the guidelines. If you’re not sure what type of costs will be considered for your business sector, it’s important to talk to a business advisor or accountant who can help you figure it out in order to avoid penalties.

Don’t Forget About HST

If your gross revenue exceeds $30,000 a year, you need to pay HST. If you’re not there yet, you don’t have to file your HST return with your taxes. If you’re one of the lucky ones whose gross income is more than $1.5 million per year, you’ll need to talk to an accountant about the best ways to file your taxes.

File on Time

You don’t have to wait till the end of the year to pay taxes; you can file every month if you prefer. It’s a great way to avoid the monstrous tax bill that you can expect at the end of the year. All you need to do is create an online vendor account for the CRA through your online banking and pay according to your tax bracket. If you do decide to pay yearly, make sure you meet the June 15th deadline to submit your taxes. Otherwise, you could receive a late-filing penalty, adding more salt to your wounds.

Hire a Professional

To make sure you nail your taxes this year, it’s worth it to put your trust in a professional financial advisor. An expert knows all the ins and outs of the tax system, the new regulations, how to avoid penalties, and how to get you the best return possible. Making a costly mistake on your own or missing out on some line items could prevent you from getting the return you deserve

When you’re ready to speak to an advisor who can help you get the highest return for your business, contact our team at The Beacon Group of Assante Financial Management Ltd. Our team of highly trained wealth advisors can help your business get on the right track today and stay there well into the future.

Keeping Your Family Business Alive Using Motivation

Every company owner’s dream is that the family business will stay alive well after they’ve retired and gone; but it’s easier said than done to keep the business going, especially if you don’t have a proper plan in place. Regardless of your age, the only way to ensure that your business survives your exit is to create a succession plan. There’s no better time than now to learn how you can keep your family business alive with motivation and careful planning.

Focus on Next-Generation Leadership

Did you know that less than a third of family-owned businesses stay alive through the second generation? If you plan to pass off your business to your son, daughter, niece, or nephew, you need to start engaging them now. Successful family-run organizations immerse their children in the business at an early age. From working in the field to bookkeeping to sitting in on decision-making meetings, getting your family involved and teaching them every aspect of the business will give them the leadership skills and pride needed to carry your business into future generations.

Foster Healthy Family Dynamics

If your family barely sees each other or is riddled with conflict, the odds of your children wanting to assume your business will be slight. To keep your family business alive, you need to be motivated to strengthen the family bond and the interconnections. This includes communicating regularly, participating in their lives, and finding shared values among you and your children. The greater the bond, the more likely your children will feel passionate about being part of the family business.

Start Succession Planning Early

If you want to see your legacy carried on, you need to nail down the particulars of your succession plan early on. This way you’ll have plenty of time to prepare and groom your successors to take over the business. If you were to pass away before creating a detailed plan, your family would be left trying to figure out what to do with the business and figuring out who would run it.  This can lead to conflict, confusion, and costly tax burdens, which is something no parent wants to leave behind. Instead, you should meet with a professional advisor who can start putting your succession plan into place earlier rather than later.

Involve Your Family in Planning

Having a succession plan is one thing, but including your family in the process is another. For instance, let’s say you think your university educated, ambitious daughter is the perfect candidate to take over your business, so you put her into your succession plan. But what happens when you find out years later that she has other plans for her future which doesn’t include following in your footsteps. Meanwhile, your youngest son is motivated to learn and grow your business starting now. If you don’t talk to your children in detail about their goals, ambitions, and future plans, you may choose the wrong successor. Communication will allow you to find out who is willing to continue your legacy after your gone so you can groom them well ahead of time.

If you want to keep your family business alive, you need the motivation to get your family ready to take on your legacy and get your succession plan in order. When you’re ready to start planning today to create the future you dream of tomorrow, contact our team at The Beacon Group of Assante Financial Management Ltd. We can help you to make smart choices to ensure a successful sale or transfer of your business from one generation to the next.