Welcome back to another episode of Fireside Financial. In this episode, Joe Curry and Regan Schiller explore the complexities of optimizing retirement income through strategic withdrawals from Registered Retirement Income Funds (RRIFs) and other retirement accounts. They delve into the advantages of early RRIF excess withdrawals, even in cases where clients may not immediately require these funds.

The hosts examine the realm of astute tax planning, emphasizing the benefits of channeling funds into Tax-Free Savings Accounts (TFSAs) to reap tax-free growth and withdrawals. They underscore the significance of contemplating long-term tax consequences as opposed to annual tax evaluations and evaluate dynamic withdrawal strategies like the "guardrail" approach, crafted to adapt to evolving portfolio performance.

This episode, enriched with expert guidance and real-life illustrations, provides a treasure trove of insights for individuals navigating the intricacies of retirement planning in Canada.

Get in touch with Regan and Joe:

Regan Schiller: https://www.linkedin.com/in/schillerandassociates/

Joe Curry: https://www.linkedin.com/in/joseph-curry-b-sc-cfp-chs-42659247/

Book your FREE Retirement Planning Consultation and check out our master class on Retirement Planning for an in-depth look into our planning process here: https://value.schillerandassociates.com/retirement

Prefer to watch videos to get great information? Check out our YouTube Page.

Resources in Today’s Episode:

Joe Curry

Regan Schiller

Retirement Planning Simplified – Joe’s website

Retirement Planning Simplified – Youtube Channel

Retirement Navigator – A holistic tool from RPS to help you plan your retirement

Your Canadian Retirement Specialist – Regan’s podcast

Your Canadian Retirement Specialist – Regan’s Youtube Channel

Regan Schiller & Associates | IG Private Wealth Management

Are You Nearing Retirement? – Article from Financial Planning Canada about being strategic when collecting CPP/QPP benefits

CPP

OAS

Views of guest speakers may not be shared by IG Wealth Management.

Mutual funds and investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm). Additional investment products and brokerage services are offered through Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently, and past performance may not be repeated.

LIRA regulations vary provincially. For more information on LIRA in your area, please refer to your provincial government’s website. Additional information on the Canada Pension Plan and Old Age Security can be found at:

www.canada.ca/en/services/benefits/publicpensions.html.

A Tax-Free Savings Account (TFSA) serves as a valuable tool for most Canadians seeking to build wealth while minimizing tax liabilities.

While there are numerous advantages to using a TFSA for investment purposes, it's crucial to be aware of potential errors that can prove financially burdensome. This episode delves into the eight common missteps individuals often make and offers guidance on steering clear of them.

Book your FREE Retirement Planning Consultation and check out our master class on Retirement Planning for an in-depth look into our planning process here: https://value.schillerandassociates.com/retirement

Prefer to watch videos to get great information? Check out our YouTube Page.

Comment below with any questions or topics you’d like us to cover! And don’t forget to subscribe for the latest updates.

Thanks for tuning in to Your Canadian Retirement Specialist!

Connect with Regan:

Facebook: https://www.facebook.com/yourcanadianretirementspecialist 

LinkedIn: https://www.linkedin.com/in/schillerandassociates

Website: https://schillerandassociates.com/ 

Regan Schiller holds his Certified Financial Planner, Registered Retirement Consultant and Certified Life Underwriter designations. He is an Executive Financial Consultant licensed under Investors Group Securities Inc.

Mutual funds and investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm). Additional investment products and brokerage services are offered through Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently, and past performance may not be repeated.

LIRA regulations vary provincially. For more information on LIRA in your area, please refer to your provincial government’s website. Additional information on the Canada Pension Plan and Old Age Security can be found at:

www.canada.ca/en/services/benefits/publicpensions.html.

Music courtesy of LesFM: https://lesfm.net.

When your aging parent is no longer able to keep track of bills, investments and money management, someone else must step in. Often the parent has appointed an adult child or other relative to do the job. It can be a lifesaver or it can create explosive conflict and unnecessary costs.

In today's episode, we go through some common mistakes made when managing money for an aging parent or relative.

Book your FREE Retirement Planning Consultation and check out our master class on Retirement Planning for an in-depth look into our planning process here: https://value.schillerandassociates.com/retirement

Prefer to watch videos to get great information? Check out our YouTube Page.

Comment below with any questions or topics you’d like us to cover! And don’t forget to subscribe for the latest updates.

Thanks for tuning in to Your Canadian Retirement Specialist!

Connect with Regan:

Facebook: https://www.facebook.com/yourcanadianretirementspecialist 

LinkedIn: https://www.linkedin.com/in/schillerandassociates

Website: https://schillerandassociates.com/ 

Regan Schiller holds his Certified Financial Planner, Registered Retirement Consultant and Certified Life Underwriter designations. He is an Executive Financial Consultant licensed under Investors Group Securities Inc.

Mutual funds and investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm). Additional investment products and brokerage services are offered through Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently, and past performance may not be repeated.

LIRA regulations vary provincially. For more information on LIRA in your area, please refer to your provincial government’s website. Additional information on the Canada Pension Plan and Old Age Security can be found at:

www.canada.ca/en/services/benefits/publicpensions.html.

Music courtesy of LesFM: https://lesfm.net.

Welcome back to another episode of Fireside Financial, where your hosts Regan Schiller and Joe Curry answer your retirement-related questions. Regan and Joe share their expert insights and practical examples, offering you valuable guidance as you navigate the challenges of retirement planning in Canada.

They answer your questions on CPP, pension plans, and retirement planning strategies, and explore various retirement scenarios, such as working part-time after age 60 and its impact on CPP. As well, they discuss when to start planning for retirement and how TFSA affects government income supplements.

Thanks for tuning in! And, if you have retirement related questions, be sure to reach out and share them with Regan and Joe—they will answer them in an upcoming episode.

Get in touch with Regan and Joe:

Regan Schiller: https://www.linkedin.com/in/schillerandassociates/

Joe Curry: https://www.linkedin.com/in/joseph-curry-b-sc-cfp-chs-42659247/

Book your FREE Retirement Planning Consultation and check out our master class on Retirement Planning for an in-depth look into our planning process here: https://value.schillerandassociates.com/retirement

Prefer to watch videos to get great information? Check out our YouTube Page.

What You’ll Learn in Today’s Episode:

Working Part Time and CPP: Joe and Regan discuss the effect of working part time and receiving CPP payments for people aged 60-65. Such work won't negate CPP payments, and can improve them. The CPP formula allows you to replace low-income years.

Defined Benefit Pension Plans: Regan and Joe discuss the different scenarios of taking a commuted value from a pension plan versus receiving a monthly pension. Factors like risk tolerance, required rates of return, and legacy planning influence decision-making.

Optimal CPP Timing: When should you start CPP payments? Taking CPP early may ease portfolio stress, but delaying payments can be more beneficial, even if advisors suggest otherwise. Regan and Joe suggest you evaluate factors like other income sources, survivor benefits, and required rates of return, in order to choose the best strategy for you.

Retirement Planning Timeline: Start your retirement planning as early as possible, ideally three to five years prior to your retirement date. Keep in mind that a longer planning horizon allows for adjustments, testing income needs, and making necessary course corrections to ensure a comfortable retirement.

Testing Out Retirement Spending: Regan and Joe suggest testing retirement income by living off the projected retirement budget for a year. This will help you determine if your retirement expectations are in alignment with reality, and will help you identify potential adjustments before fully retiring.

CPP and Living Outside of Canada: Regan and Joe clarify that if you leave Canada, you remain eligible for CPP payments: contributions made to the plan cannot be withdrawn. You will receive your CPP benefits when you retire, regardless of where you live.

Government Income Supplements and TFSAs: Money earned within a Tax-Free Savings Account (TFSA) doesn't impact other income-tested benefits like the Guaranteed Income Supplement (GIS). Earnings within a TFSA remain tax-free, making a TFSA account a valuable tool for retirement planning without impacting government assistance eligibility.

Resources in Today’s Episode:

Joe Curry

Regan Schiller

Retirement Planning Simplified – Joe’s website

Retirement Planning Simplified – Youtube Channel

Retirement Navigator – A holistic tool from RPS to help you plan your retirement

Your Canadian Retirement Specialist – Regan’s podcast

Your Canadian Retirement Specialist – Regan’s Youtube Channel

Regan Schiller & Associates | IG Private Wealth Management

Are You Nearing Retirement? – Article from Financial Planning Canada about being strategic when collecting CPP/QPP benefits

CPP

OAS

Views of guest speakers may not be shared by IG Wealth Management.

Mutual funds and investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm). Additional investment products and brokerage services are offered through Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently, and past performance may not be repeated.

LIRA regulations vary provincially. For more information on LIRA in your area, please refer to your provincial government’s website. Additional information on the Canada Pension Plan and Old Age Security can be found at:

www.canada.ca/en/services/benefits/publicpensions.html.

Anyone with a variable rate mortgage in Canada understands the impact of rising interest rates.

A rate hike can either cause borrowers’ debt payments to climb or reduce the amount of principal their mortgage payments pay off. Interest rate rises are caused when the Bank of Canada decides to increase its overnight rate, which is a short-term interest rate that factors into lending costs. Depending on the economic circumstances, interest rates can rise substantially over a year.

Most people are aware that rising interest rates have an impact on mortgage costs: variable rates typically rise in line with the overnight rate, and it can also become more expensive to renew a fixed rate mortgage. However, higher interest rates can impact other aspects of our lives as well. 

What should you do during periods of rising interest rates?

You should speak with an IG advisor to discuss how rising interest rates might impact your portfolio. They can provide advice and suggestions to deliver better returns in a higher-rate environment.

Book your FREE Retirement Planning Consultation and check out our master class on Retirement Planning for an in-depth look into our planning process here: https://value.schillerandassociates.com/retirement

Prefer to watch videos to get great information? Check out our YouTube Page.

Comment below with any questions or topics you’d like us to cover! And don’t forget to subscribe for the latest updates.

Thanks for tuning in to Your Canadian Retirement Specialist!

Connect with Regan:

Facebook: https://www.facebook.com/yourcanadianretirementspecialist 

LinkedIn: https://www.linkedin.com/in/schillerandassociates

Website: https://schillerandassociates.com/ 

Regan Schiller holds his Certified Financial Planner, Registered Retirement Consultant and Certified Life Underwriter designations. He is an Executive Financial Consultant licensed under Investors Group Securities Inc.

Mutual funds and investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm). Additional investment products and brokerage services are offered through Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently, and past performance may not be repeated.

LIRA regulations vary provincially. For more information on LIRA in your area, please refer to your provincial government’s website. Additional information on the Canada Pension Plan and Old Age Security can be found at:

www.canada.ca/en/services/benefits/publicpensions.html.

Music courtesy of LesFM: https://lesfm.net.

In today's episode, I sit down with author and coach, Jane Blaufus. We discuss the concept of courageous conversations and how to have them, so that we can be better prepared for life events, both personally and financially.

Best Selling Author Jane Blaufus draws from her extensive expertise in the financial services world along with her own personal experiences after losing her first husband to help people have the necessary courageous conversations in life.

Her book, WITH THE [STROKE] OF A PEN: Claim Your Life and companion planning binder have become recognized as excellent resources to help individuals to get the conversations started not only with their loved ones but also with their life insurance advisor, lawyer, accountant, and funeral planner to get their personal and financial lives in order while they can.

The first six listeners to write in will receive a free copy of Jane's bestselling book, WITH THE [STROKE] OF A PEN: Claim Your Life. Terms & conditions apply. To register and view the terms and conditions, please contact us at [email protected] with the subject line: Giveaway Contest. Please include your name, email and phone number. The winners will receive a free signed copy of With a Stroke of a Pen. Register now as this contest ends September 15th, 2023. Only available to residents of BC, Alberta and Saskatchewan. 

Connect with Jane Blaufus: 

LinkedIn: linkedin.com/in/janeblaufus

Twitter: JaneBlaufus

Book your FREE Retirement Planning Consultation and check out our master class on Retirement Planning for an in-depth look into our planning process here: https://value.schillerandassociates.com/retirement

Prefer to watch videos to get great information? Check out our YouTube Page.

Comment below with any questions or topics you’d like us to cover! And don’t forget to subscribe for the latest updates.

Thanks for tuning in to Your Canadian Retirement Specialist!

Connect with Alison:

https://abclifeliteracy.ca/contact-us/

Connect with Regan:

Facebook: https://www.facebook.com/yourcanadianretirementspecialist 

LinkedIn: https://www.linkedin.com/in/schillerandassociates

Website: https://schillerandassociates.com/ 

Regan Schiller holds his Certified Financial Planner, Registered Retirement Consultant and Certified Life Underwriter designations. He is an Executive Financial Consultant licensed under Investors Group Securities Inc.

Mutual funds and investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm). Additional investment products and brokerage services are offered through Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently, and past performance may not be repeated.

LIRA regulations vary provincially. For more information on LIRA in your area, please refer to your provincial government’s website. Additional information on the Canada Pension Plan and Old Age Security can be found at:

www.canada.ca/en/services/benefits/publicpensions.html.

Music courtesy of LesFM: https://lesfm.net.

In Episode 4 of Fireside Financial, Joseph and Regan discuss the increasing trend of parents supporting their millennial children financially.

They explore different forms of assistance parents are offering, including down payments on homes, groceries, rent, and mortgages. The hosts stress the importance of a solid financial plan to ensure the support does not compromise the parents' retirement or financial well-being. They also advocate for open communication with children about the financial assistance being given and how it may affect the family's estate in the future. 

Ultimately, the podcast highlights the commonality of this practice and encourages thoughtful and informed decision-making in providing financial help to millennial children.

What You’ll Learn in Today’s Episode:

• Parents Supporting Millennials: The podcast discusses the prevalent trend of parents financially supporting their millennial children, particularly in the context of rising housing costs and inflation.

• Types of Assistance: The hosts mention various forms of support, including contributing to groceries, rent, mortgage payments, and even full down payments on home

• Financial Planning: It is emphasized that parents should have a solid financial plan before assisting their children. This ensures that their own retirement and financial stability are not compromised.

• Informed Decision-Making: Parents are encouraged to make informed decisions about the amount of support they offer, considering their financial situation and long-term goals.

• Open Communication: The importance of open communication with children about the financial assistance being given and its potential impact on the family's estate is highlighted.

Ideas Worth Sharing: 

• "It's normal... you're not alone in that situation."

• "Financial support for your children: plan wisely, secure your own future."

• "Don't hesitate to help your kids, just make sure you're doing your own planning."

• "One of the greatest gifts you can give your kids is financial awareness."

• "Helping out now and seeing your kids benefit is a living legacy."

Resources in Today’s Episode: 

Joe Curry 

Regan Schiller 

Retirement Planning Simplified

What’s the new normal for parents financially helping adult kids? Rob Carrick, Globe and Mail

How Does Financial Assistance to Adult Children Affect Your Retirement Income?

Are you worried about how financially supporting your adult children might impact your retirement income? You're not alone. Our guest today, Joe Curry, has a wealth of experience with this topic, being a parent who's currently navigating the waters of this complex issue.

His co-guest, Regan Schiller, has extensively studied the economic challenges faced by millennials and the increasing trend of parents providing some form of financial support to their adult children.

Both Joe and Regan have their unique, relatable stories that mirror what many parents are going through. They're here to delve into the nitty-gritty, detail by detail, of how they managed to strike a balance between offering financial help to their children and maintaining their retirement plans.

As parents of adult children nearing retirement age, there's a lot on your plate, particularly concerning financial planning and security. One crucial factor to consider is the impact of giving financial assistance on your retirement income. It's important to understand that while the act of giving is heartwarming, it could potentially disrupt the financial stability you've worked tirelessly to achieve. Through this blog, we will shine a light on these implications, offering a comprehensive view of the situation and equipping you with the knowledge to maintain a balance between your charitable instincts and your financial well-being in retirement.

Here are the questions answered in this blog post:

• How does providing financial assistance to adult children affect your retirement income?

• What are the tax implications of financially supporting adult children?

• How might financial support for adult children impact other income sources like RIFF withdrawals or OAS clawbacks?

• What factors should be considered when planning to give financial assistance to adult children while nearing retirement?

• How can parents navigate the potential family disputes related to unequal financial support for different children?

Views of guest speakers may not be shared by IG Wealth Management.

Mutual funds and investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm). Additional investment products and brokerage services are offered through Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently, and past performance may not be repeated.

LIRA regulations vary provincially. For more information on LIRA in your area, please refer to your provincial government’s website. Additional information on the Canada Pension Plan and Old Age Security can be found at:

www.canada.ca/en/services/benefits/publicpensions.html.

The saying, "Anything worth having is worth waiting for," is often true.

Consider some of the most important goals you hope to complete in your lifetime. Perhaps your goals include starting a profitable company, getting an advanced degree, becoming a recognized authority in your industry, starting a family, or sailing the seven seas. All of these tasks require time and are infrequently completed by coincidence or short-term approaches.

There is a reason why professional athletes practice for the majority of their childhood and why it takes nine months to deliver a baby. There are no shortcuts to generating wealth, either. It's all about playing the long game, which calls for discipline, strategy, consistency, and patience.

Book your FREE Retirement Planning Consultation and check out our master class on Retirement Planning for an in-depth look into our planning process here: https://value.schillerandassociates.com/retirement

Prefer to watch videos to get great information? Check out our YouTube Page.

Comment below with any questions or topics you’d like us to cover! And don’t forget to subscribe for the latest updates.

Thanks for tuning in to Your Canadian Retirement Specialist!

Connect with Regan:

Facebook: https://www.facebook.com/yourcanadianretirementspecialist 

LinkedIn: https://www.linkedin.com/in/schillerandassociates

Website: https://schillerandassociates.com/ 

Regan Schiller holds his Certified Financial Planner, Registered Retirement Consultant and Certified Life Underwriter designations. He is an Executive Financial Consultant licensed under Investors Group Securities Inc.

Disclaimer: https://www.morningstar.co.uk/uk/news/159098/do-low-volatility-etfs-deliver.aspx Mutual funds and investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm). Additional investment products and brokerage services are offered through Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently, and past performance may not be repeated.

LIRA regulations vary provincially. For more information on LIRA in your area, please refer to your provincial government’s website. Additional information on the Canada Pension Plan and Old Age Security can be found at:

www.canada.ca/en/services/benefits/publicpensions.html.

Music courtesy of LesFM: https://lesfm.net.

Although there is a significant intergenerational wealth transfer underway in Canada, many families are delaying difficult discussions about what life will be like once a parent passes. When everyone is in good health, having the talk is difficult, but when someone is unwell, it becomes even more difficult. In this example, Jane Doe experienced this firsthand when her father passed away in 2021. Although her parents owned their own businesses and had instilled in her the value of conserving money, no one ever brought up the more serious subjects of wills, powers of attorney, and assets. This became a major issue when her father became ill. Jane's financial advisor facilitated the financial conversations Jane and her parents had been avoiding and brought them together. Jane was really delighted with how her advisor was able to handle the discussion. He was able to provide guidance and explain how other families handled the matter. Today, there is a growing demand for financial consultants. The role of an advisor has changed over the years. Today, they primarily serve as coaches and teachers. Although your parents are critical first trainers in both cases, financial advisors can be compared to driving instructors since a professional can ultimately convey the information more effectively. Finding the ideal advisor for you means understanding their experiences, the kinds of families they work with, and the services they offer. There are a few reasons why some people continue to put off estate planning. One has to do with the name itself; some people may not consider themselves wealthy enough to require a plan because the word "estate" conjures up images of a mansion in the English countryside. "Analysis paralysis" is a situation in which a person is so unsure about what they want to do or is so overwhelmed that they end up not making any decisions at all. In this situation, it can be helpful to start the process and make sure their family is safe. According to Jane Doe's own experience, it is always preferable to act quickly. It might not be the most enjoyable item on everyone's list. However, it is preferable to hold those discussions when everyone is in a healthy emotional state. Where do you start when you're prepared to make a plan? There are three essential steps: 1) As expected, the process begins with an evaluation of your assets and financial situation.

2) This is where the discussions may become more challenging. How would you prepare for the possibility of your own incapacity? When answering questions concerning end-of-life care, you may be asked about who you want to make health choices for you and if you want to have any say in the planning of your funeral.

3) Who are the people, places, and things you are doing this for? What inspires you? This could be providing a grandchild with special needs with a secure future or making a meaningful contribution to a location or cause. Keep in mind that this document isn't set in stone; you may always go back and edit it. Your advisor will be better able to construct an overall plan and give you and your family peace of mind if they are aware of what is most important to you.

Book your FREE Retirement Planning Consultation and check out our master class on Retirement Planning for an in-depth look into our planning process here: https://value.schillerandassociates.com/retirement

Prefer to watch videos to get great information? Check out our YouTube Page.

Comment below with any questions or topics you’d like us to cover! And don’t forget to subscribe for the latest updates.

Thanks for tuning in to Your Canadian Retirement Specialist!

Connect with Regan:

Facebook: https://www.facebook.com/yourcanadianretirementspecialist 

LinkedIn: https://www.linkedin.com/in/schillerandassociates

Website: https://schillerandassociates.com/ 

Regan Schiller holds his Certified Financial Planner, Registered Retirement Consultant and Certified Life Underwriter designations. He is an Executive Financial Consultant licensed under Investors Group Securities Inc.

Disclaimer: https://www.morningstar.co.uk/uk/news/159098/do-low-volatility-etfs-deliver.aspx Mutual funds and investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm). Additional investment products and brokerage services are offered through Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently, and past performance may not be repeated.

LIRA regulations vary provincially. For more information on LIRA in your area, please refer to your provincial government’s website. Additional information on the Canada Pension Plan and Old Age Security can be found at:

www.canada.ca/en/services/benefits/publicpensions.html.

Music courtesy of LesFM: https://lesfm.net.

If you would like to leave some money or assets to a loved one who is living with disabilities when you die, be sure to consider how receiving that inheritance might impact that person’s other financial resources, such as social assistance benefits.

Henson trusts can protect access to social assistance benefits Every province and territory has its own specific laws and regulations addressing social assistance and support programs, and most have programs directed solely at persons with disabilities.

The benefits provided can include a monthly stipend, specialized or subsidized housing, and/or medical benefits. In order to qualify to receive this assistance, the person must show that he or she is “disabled”, and that he or she is in “need”, as defined in the applicable legislation. In general, a person will not be considered in “need”, and therefore will not be eligible to receive disability social assistance, unless the person meets certain asset and/or income tests. If the person inherits a significant sum of money directly (as opposed to indirectly, as a beneficiary of a trust), the inheritance could disqualify the person from continued assistance. 

In most provinces and territories, if an inheritance is payable to a trust for the person with disabilities instead of directly to that person, and the terms of the trust are sufficiently “discretionary”, the assets within the trust will not be considered to be assets of the person with disabilities, and so will not affect his or her entitlement to government social assistance programs.

The trust may also be permitted to distribute up to certain annual amounts to the beneficiary without those distributions counting against his or her income limit. 

As a result, if one of your intended beneficiaries is receiving social assistance benefits, it is usually best to leave assets to him or her through a fully discretionary trust, sometimes referred to as a Henson trust, instead of leaving assets directly to him or her.

This is a type of trust where the trustee (as designated in your will) manages the assets for the benefit of the beneficiary, but the assets are not legally owned by the beneficiary, and the trustee has the complete discretion to determine if, when and how much should be distributed to the beneficiary at any given time.

Book your FREE Retirement Planning Consultation and check out our master class on Retirement Planning for an in-depth look into our planning process here: https://value.schillerandassociates.com/retirement

Prefer to watch videos to get great information? Check out our YouTube Page.

Comment below with any questions or topics you’d like us to cover! And don’t forget to subscribe for the latest updates.

Thanks for tuning in to Your Canadian Retirement Specialist!

Connect with Regan:

Facebook: https://www.facebook.com/yourcanadianretirementspecialist 

LinkedIn: https://www.linkedin.com/in/schillerandassociates

Website: https://schillerandassociates.com/ 

Regan Schiller holds his Certified Financial Planner, Registered Retirement Consultant and Certified Life Underwriter designations. He is an Executive Financial Consultant licensed under Investors Group Securities Inc.

Disclaimer: https://www.morningstar.co.uk/uk/news/159098/do-low-volatility-etfs-deliver.aspx Mutual funds and investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm). Additional investment products and brokerage services are offered through Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently, and past performance may not be repeated.

LIRA regulations vary provincially. For more information on LIRA in your area, please refer to your provincial government’s website. Additional information on the Canada Pension Plan and Old Age Security can be found at:

www.canada.ca/en/services/benefits/publicpensions.html.

Music courtesy of LesFM: https://lesfm.net.