How to Decide Who Should be The Executor of Your Will

How to Decide Who Should be The Executor of Your Will

When you create your will, one of the most important things you need to do is choose your executor. This is an important role that comes with the responsibility of taking care of the probate process, estate inventory, payments and notifications, final tax returns, and distributing your assets. You need to choose someone who is reliable, organized, and honest enough to carry out your estate exactly as you planned. To help you make a well-informed decision, here are some of the factors to consider when trying to decide who should be the executor of your will.

Family Dynamics

The majority of people prefer to choose a family member as their executor. While this can be a more comforting choice, it’s not always the right one. If your family is already experiencing conflict, then choosing one over the other as an executor will only lead to more problems. If this is the case, you may want to select a reliable friend or a third party to carry out your will.

Health and Resilience

Your ideal executor should be of good health and younger than you. They’ll also have the patience to carry out the lengthy process and deal with government agencies and the banks. Being the executor of a will is a truly stressful responsibility to — they need to be ready for that.

Proximity

It’s essential that the person who you choose lives in the same area as you. It’s not only easier to deal with the process when you’re close by, but it could also speed up the process. There may be regulations in place that will prevent you from choosing someone outside of province or state. It’s important to check with your local jurisdiction to find out what is required if you decide to go this route.

Experience

Although a degree in finance and accounting is not required to be an executor, it’s always wise to choose someone who has experience working with finances in some capacity or is willing to do the research. There will be a number of documents and tax forms that will need to be filled out, followed up on, and managed into the future, so it’s important to choose someone who is comfortable with bookkeeping and dealing with all the relevant agencies.

Deciding who to assign as the executor of your will is an important decision and one that should be given careful thought. At The Beacon Group of Assante Financial Management Ltd., we are dedicated to managing and securing the finances and assets entrusted by our clients. Contact us today to learn how we can protect your legacy.

Telltale Signs You Need to Make a Lifestyle Change

Telltale Signs You Need to Make a Lifestyle Change

It’s easy to get caught up in the rat race of life and find yourself stuck in a rut that doesn’t resemble what you had dreamed of doing or becoming. In order to live a happy and meaningful life, sometimes, it’s necessary to alter it’s direction significantly.

The moments that make you stop and reflect are usually the most prominent signs that it’s time to alter your course. Read on to learn some of the most common symptoms that should show when you need to make a lifestyle change.

It’s Hard to Get Up In the Morning

Most of us dislike when the alarm goes off in the morning. But, if you find yourself seriously despising the idea of getting out of bed and facing another day, take note that it’s time to make a lifestyle change.

You Feel Unmotivated

When you feel overwhelmed and dispassionate about your life, often this can manifest into a desire to avoid doing just about anything. Retreating home and feeling unmotivated to do much else means that your body and mind have become somewhat numb to your lifestyle, which is never a good way to live.

You Feel Negatively About Everything

Feeling cynical about the world around you, whether it’s your job, your finances, or engaging with the people you meet day to day, is an indication that you’ve reached a severe level of dissatisfaction within your life. When you can’t find anything positive to say, a change of direction is a must.

You Don’t Put any Effort into Yourself

Taking care of yourself should always be your number one priority. After all, you’re the most important thing in your life! When you stop putting any effort into improving as a person, you begin to stagnate. When you stagnate, it can become very easy for negative feelings to take over, which can eventually turn into a form of numbness.

You Continually Feel an Immense Amount of Stress

Stress is a normal part of life, but feeling an immense amount of it on a constant basis is dangerous for both your physical and mental health. If you’ve been just barely able to cope with the amount of pressure that life is throwing your way and your mental health is suffering as a result, this is one of the most important signs to recognize when it’s time to make a change.

It’s hard to make major changes to your life, especially if you’ve been in a similar lifestyle for a long time. That said, it’s much better to take the time and effort to alter the course of your life than to stay complacent. While we often trick ourselves into thinking we are comfortable, comfort is something you should never settle for. We all deserve to live our best life, and with the right motivation, support, and willpower, it is something we can all achieve.

5 Key Pieces of Effective Tax Optimization

5 Key Pieces of Effective Tax Optimization

There’s one thing that you can’t avoid no matter how hard you try, and that’s taxes. Tax adherence is a responsibility of every Canadian citizen, no matter how much money you make or what type of work you do. While you can never escape taxes entirely, you can take advantage of methods made to minimize them to reduce the burden on you and your family.

If you’re looking for ways to reduce the amount of tax you pay out to the government throughout your years, review these five components of effective tax optimization and keep them in mind for the future.

Income Optimization

There are a number of income optimization methods that you can utilize to help minimize your taxes. For one, you can engage in income splitting with your spouse to transfer the tax liability from the higher-income earner to the lower one. You can’t legally “split” your income amounts per se, but there are a number of ways to utilize this strategy without penalty such as: creating a spousal loan, contributing to a spousal RRSP, or establishing a family trust.

Tax Efficient Investments

There are a number of registered accounts that you can take advantage of to defer your taxes into the future. If you’ve maxed out on your limits, you need to find other places to shelter your money. An expert financial consultant can help you maximize your tax-efficient investments most effectively by strategically distributing your income and investments across your RRSPs, RRIFs, TFSAs, and a number of other tax-sheltered options like your life insurance policy.

Business Management

One tax efficiency strategy that can help you keep as much of your income as possible is expense management. Learning how to claim expenses correctly can increase your tax efficiency and reduce both your personal and corporate tax bill. Corporate clients can also take advantage of optimizing salaries and dividends, estate freezes, and other advanced methods to minimize taxes.

Tax Deductions

Another effective way to reduce taxes is to take advantage of all the possible deductions and credits on your income tax and benefit return. Deductions, such as retirement and CPP contributions, moving expenses, child care expenses, support payments, student loan interest, and tuition expenses can all be claimed for tax credits. In fact, there are over 90 deductions and tax credits that you can claim in Canada that will put more money back into your pocket each year.

Investment Strategies

Higher net worth Canadians that have a lot of money tied up in investments will often find that the tax on the interest can become substantial if they don’t have a proper strategy in place. A professional advisor can provide you with a number of strategies that can reduce your capital gains and lower your investment taxes to optimize your returns.

A professional and experienced financial advisor can work out the most effective strategy for your personal and corporate tax optimization. Their expertise ensures that your finances will adhere to the newest regulations and follow all legal practices to avoid penalties and unlawful misconduct.

Our experts at The Beacon Group of Assante Financial Management Ltd. will enjoy crafting the best tax strategy for your particular needs to ensure that the best approach is taken to enhance your success.

Why Have a Contingency Plan for Your Business?

Why Have a Contingency Plan for Your Business?

With all the recent news stories and financial experts discussing the potential of an upcoming recession, it’s hard not to get a little uneasy about the future of your business. Amidst all the red signs, do you sit back and hope for the best or do you start preparing in advance? The answer is simple — if you don’t have a plan already in place to help you stay afloat in stormy weather, it’s time you build one.

Having a contingency plan for your business can help you to mitigate any risks and react appropriately in the face of a setback, no matter what that is. To demonstrate our point, we’ll show you exactly why we recommend having a contingency plan for your business and how you can set one up today.

Minimizes Loss

A recession isn’t the only thing that could sink your business if you’re not prepared. A simple disruption like a power outage, a critical illness, an early death, or a natural disaster could reduce the production of your company and put you out of business. A contingency plan is designed to keep your company running and minimize loss, no matter the circumstance.

Keeps Everyone Calm

When a business-related disaster happens, people panic (naturally), especially if there are no specific instructions to follow. This can exacerbate the situation and impact the recovery time needed for your business to get back on its feet. Fortunately, a contingency plan can provide a clear plan of attack so that everyone knows exactly what they need to do and who to turn to for instructions. This ensures that your employees respond quickly and your business gets back to the status quo as soon as possible.

Protects Your Business

A contingency plan is similar to an insurance plan — it’s put in place to protect your business. It starts by looking at your main risk factors and what makes your business vulnerable. Then it puts policies in place to protect your business as much as possible from these risks. That’s why a contingency plan and insurance plan go hand in hand — your contingency plan helps you minimize the risk factors, and your insurance covers you when these unforeseen (or foreseen) circumstances do actually happen.

Gets You Back on Your Feet

Would you know what to do if a natural disaster destroyed your computer programs or critical machinery? A contingency plan ensures that your corporate records and intellectual assets are properly backed up so that your business can get back on its feet right away. What if you fell ill and couldn’t run your business — do you have a second in command ready that you trust? A contingency plan ensures your management team is adequately trained and prepared to step up and take over your business if you can’t.

Creates a System of Checks and Balances

Contingency plans also create a system of checks and balances. This is designed to prevent any problems that can arise during and after a crisis, such as operational errors and mismanagement. In the event that something does happen, it will provide the tools for you to evaluate and reorganize your company to prevent any future incidents from happening again.

When you need a contingency plan for your business, we’re here to help. At The Beacon Group of Assante Financial Management Ltd., we can give you the advice you need to protect your business wealth and legacy no matter what speed bumps or setbacks arise. To learn about our professional business services, contact us today.