Good To Know – Financial Life Planning Tips from Betty-Anne Howard, Athena Wealth and Legacy Planning
Case studies! Sometimes that’s the best way to give real-life examples of how we can make a difference by thinking about and planning for legacy gifts. Here is a scenario that happened recently when we met with a donor to discuss their estate & legacy plans including via options to maximize their estate value and minimize takes. When we looked at what the difference was between their “old” plan, and the “new” one, the results were astounding!
The “old” plan:
Estate Taxes To Be Paid To CRA – $150,000
Estate Assets to 2 Children (each) – $825,000
Estate Assets to Charities – $230,000
Debt – $250,000
The “new” plan:
Estate Taxes To Be Paid To CRA – $0
Estate Assets to 2 Adult Children (each) – $900,000
Estate Assets to Charities – $280,000
Debt – $0
The new plan meant that they went from owing approximately $150,000 in taxes to CRA to $0, from $250,000 in debts owing to $0, PLUS 10% more to their adult children and 16% more in charitable donations. Wow!
This is the reality of what we can achieve together to most effectively structure your estate/legacy plan in a way that, as you can see above, maximizes the value to the charity and your heirs, and takes care of the tax liability – by reducing or eliminating it and, if you do have any debt, we have strategies to take care of that as well!
If you would like to learn more about how you too can make a difference in your community, your family, and the lives of others – please get in touch!
Till next time
Betty-Anne Howard / Athena Wealth and Legacy Solutions
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