Estate Planning Worksheet

Estate planning can be very technical and it usually requires the co-ordination of a team of professionals. The most difficult part though for most people is deciding what they want to do with their wealth, what do they want their legacy to be. The estate planning piece of the financial planning puzzle is integrated with your lifestyle, retirement and investing. The integrating means that decisions in one area affect the others. So where do you start? Again go back to your lifestyle goals. Look at how you want to live the rest of your life, what it will cost and then follow a process to determine and clarify what you want to happen.  

Here is a Worksheet to give you an overview of what your estate looks like:

 Estate Planning Worksheet printable Acrobat Reader file

1)   My Business Assets		$_____________
2)   Other Assets subject to Capital Gain (Real Estate, Equities, etc.)		$_____________
3)   Registered Plans (RRSP, RRIF,RPP, DPSP)		$_____________
4)   Other Assets		$_____________
5)   MY TOTAL ASSETS		$_____________
6)   My Uninsured Liabilities		$_____________
7)   Recaptured Depreciation (CCA) x 50% Tax		$_____________
8)   My Capital Gains Tax Liability :
(a) Business Cost Base		$_____________
(b) Other Cost Base		$_____________
(c) COST TOTAL		$_____________
(d) Business FMV (Fair Market Value)		$_____________
(e) Other assets FMV		$_____________
(f)  Fair Market Value TOTAL		$_____________
(g) CAPITAL GAIN (TOTAL FMV (f) - TOTAL COST (f))		$_____________
(h) Available Capital Gains Exemption		$_____________
(i)  Gain to be Taxed (g) -(h)		$_____________
(j)  Taxable Capital Gain [50% of (i)]		$_____________
9)    My Capital Gains Tax Payable (Taxable Capital Gain x 50% Tax)		$_____________
10)   My Tax Payable In 5 Years
(a) Multiply 7(f) FMV TOTAL	$___________
For    6% Growth by 1.3382
10% Growth by 1.6105
15% Growth by 2.0114
(b) Minus 7(c) COST TOTAL	$___________
(c) Minus available Capital Gains Exemption	$___________
(d) Multiply result by 50% to give Taxable Gain	$___________
(e) Taxable Gain x 50% Tax		$_____________
ADDITIONAL LIABILITIES AT DEATH
11)  Registered Plans @ 50% Tax		$______________
12)  My Estate Settlement Costs		$______________
(7% of Total Assets #4)
Settlement Costs Include Legal Fees
Probate Court Fees and Executor Fees
Total Costs Vary but Average 5 to 8%
13)  My Liquidation Losses		$______________
Fire Sale Forced by:
Insufficient Estate Liquidity
No Formal Succession Planning
Death of Key Person
Goodwill Value Lost by:
Sale of My Business Assets and Not My Business
MY SHRINKAGE
6) My Uninsured Liabilities are	$__________
7) Recaptured Depreciation (CCA)	$__________
9) My Capital Gains Tax Payable	$__________
11) Registered Plans @ 50% Tax	$__________
10) My Estate Settlement Costs	$__________
13) My Liquidation Losses	$__________
MY FAMILY'S TOTAL LOSS		$______________
Guide prepared by J. Paul Wilson, CFP, CLU, CH.F.C., TEP
1-888-205-7011 ext 261 Halifax (902) 422-1631 ext.261  www.jpw.ca E.&O.E

Here are some questions to help you:

	Do you want to leave as large an estate as possible for your spouse, children or grandchildren?
	Do you want to provide for a child or adult who has a special physical or mental need?
	Do you want transfer your business to a family member?
	Do you want to contribute to your favourite charity?
	Is you will up to date? Have you specified how your assets are to be distributed?
	Do you know what the income amount will be for your spouse / family if you die first?
	Do you know what the income amount will be for you if your spouse dies first?
	Do you want to stay in your home? Do you want it to stay in the family?
	Do you want your cottage or some other asset to “stay in the family”?
	Do you know what the tax exposure is on your estate?
	Do you know how any taxes will be paid?
	Are you concerned if CCRA (Revenue Canada) is your largest single heir?
	How important are tax strategies to you:

      Minimize taxes and be totally consistent with your overall plan?

      Minimize taxes and stay as consistent as possible to your overall plan?

      Minimize taxes at all costs? 

Many of your assets may have to go through probate and become part of public record.

      How important is privacy to you?

Can you describe in a paragraph what you want to happen to your wealth when you die? Who gets what and how much?

 

Every planning situation is different.

Your financial planner can help you work through these six key steps:

1.     Assess your current situation

2.     Understand your goals for your family

3.     Identify and prioritize your action plans

4.     Select your best action plan

5.     Document your decisions

6.     Implement your plan

Your personal records Organizer

Your personal records organizer (Word Format)

For more information contact:

 

J. Paul Wilson, CFP, CLU, CH.F.C., TEP

2-33 Thorne Avenue, Dartmouth, Nova Scotia, B3B 2E7

 Halifax/Dartmouth (902) 429-2696 ext. 225   Toll Free 1-877-429-2696 ext.225

Web site: www.jpw.ca  Email: paul@maritimewealth.com