Via an individualized and built-in property plan, monetary advisors might help Canadians defend and information the distribution of their property and wealth in a tax-efficient method. However earlier than constructing an property plan, advisors should first construct data. A current research carried out by IG Wealth Administration discovered that solely one-third of Canadians have an property plan in place and fewer than half are aware of lots of its vital parts, together with powers of lawyer, wills, insurance coverage and tax implications. Monetary advisors can take the guesswork out of the long run by bridging the data hole round property planning and serving to shoppers protect their wealth in line with their needs.
Whereas the creation of an property plan is effectively and good, it’s solely step one. Advisors should encourage shoppers to overview their plans each three to 5 years, or when important life occasions happen. Importantly, a plan also needs to be re-examined any time provincial modifications to property laws are introduced. A standard misstep is assuming that attorneys talk legislative modifications to their shoppers, however monetary advisors also needs to be usually conscious of upcoming legislative modifications to make sure their shoppers’ property plans are nonetheless updated. Via a complete and present property plan, monetary advisors can play a pivotal position in serving to shoppers keep management over their funds and well being care within the occasion of cognitive decline or loss of life.
The monetary implications related to dementia and different types of cognitive decline could be overwhelming. However there are a collection of obtainable tax credit to assist ease the monetary toll of the illness. The Canada caregiver credit score is a non-refundable tax credit score that helps caregivers assist a partner or common-law associate, or a dependent with a bodily or psychological impairment. The incapacity tax credit score is a non-refundable tax credit score to assist reduce the quantity of revenue tax paid by people with extreme or extended bodily or psychological impairments. Additionally accessible are the Dwelling Accessibility Tax Credit score and the more moderen Multigenerational Dwelling Renovation Tax Credit score to assist with the price of renovating a house to ascertain a secondary unit that allows a qualifying particular person to dwell with a qualifying member of the family. An advisor can make clear and optimize these credit to assist these affected by dementia or different types of cognitive decline hold extra money of their pockets.
We are able to’t underestimate the position monetary advisors can play in serving to Canadians put together for and navigate the monetary complexities of Alzheimer’s illness and different types of dementia. As an business, we’ve a duty to take action.
Damon Murchison is president and chief government officer at Winnipeg-based IG Wealth Administration.