Adulting with Elizabeth
After our intro event, we conducted a highly scientific survey and based our sessions on your feedback. We brought in another expert – this time Elizabeth Mah from Paperclip Law – to talk about wills.
We discussed things like:
- How to do tax season right
- What questions Elizabeth would have us ask ourselves in determining if we even need a will.
- Overall guidance from Elizabeth on how to be proactive rather than reactive when it comes to protecting your money.
Tax Tips with Dan & Rach
Some tax tips for you brought to you by the folks at Wealthsimple.
- File on time.
- Actually, file early.
- For a lot of us, the best thing you can do for your tax bill (and your future) is to contribute to your RRSP before March 1.
- If you got married (or are common-law married), get RRSP-married too.
- Marriage/Common Law part two: bundle your charitable contributions for a better bang/buck ratio (*more tax credit info below)
- When it comes to deductions, leave no stone unturned.
- Invest your tax refund as soon as you get it.
- If your refund is too big, don’t congratulate yourself – make some changes.
*First-Time Charitable Donor’s Tax Credit: if you’re donating for the first time, you can claim the first-time donor’s tax credit. As a first-time donor, you can claim an extra federal tax credit of 25 percent on your first $1,000 of donations. This works out to the equivalent of a tax credit of 40% on your first $200 in donations, and 54% on amounts above $200. More info on charitable donations and tax credits here.
Elizabeth’s Adulting Advice
Do I Need A Will?
Well, first off, what’s a will? A will is a legal document that tells everyone what to do with your stuff (and kids) after you die. In BC, it:
- Deals with your property and assets so that they pass to the people you choose, when you want them to receive it, in the form you choose (outright or over time through a trust), and in the most tax-efficient way; and
- Ensures that your kids are cared for by the people you designate, and have access to assets for their well-being and benefit.
Great, with that in mind, let’s take a closer look at the thoughts that may be going through your mind right now.
1. Doesn’t everything just automatically go to my family, spouse and children?
Not necessarily – have you added them as joint owners? Have you designated them as beneficiaries?
2. I’ve told my spouse and children about what I want so they can just take care of it.
In BC, “telling” doesn’t count. You either have a will that works, or you don’t.
3. I’ve just downloaded a will from Google or bought a will kit when I was picking up some shampoo the other day, so I’m good, right?
Well, it depends on whether you signed it properly and have covered off all your assets.
Ugh, maybe a few holes? Time to think about checking this off the to-do list. Elizabeth even has a few suggestions for what you need to write a will.