Your Estate Matters Podcast

Episode 12: Understanding the Role of Notaries in Estate Planning

In this episode, Nicole and Greg chat with Lilián Cazacu, an award-winning notary public and entrepreneur in the Fraser Valley. Lillian shares his journey from being a trained lawyer in Europe to becoming a notary public in Canada, discussing the challenges faced by immigrants and the importance of community involvement. The episode explores the differences between notaries and lawyers, the services notaries provide, and the significance of professional help in estate planning. Lillian also emphasizes the need for better support for skilled immigrants and recent regulatory changes improving access to justice.

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Your Estate Tip

The Federal Disability Tax Credit (DTC)

The DTC offers significant benefits that can greatly improve the financial situation of eligible Canadians with disabilities.

Tax Credits

The DTC provides a non-refundable tax credit that reduces the amount of income tax individuals with disabilities or their supporting family members have to pay. For the 2024 tax year, the disability credit amount is $9,428.

Canada Disability Benefit

Starting in July 2025, adults with a valid DTC certificate will be able to receive the new Canada Disability Benefit. This monthly benefit will provide up to $200, totaling $2,400 per year, to help alleviate financial pressures and improve economic stability for those living with disabilities.

Registered Disability Savings Plan (RDSP)

The DTC qualification opens the door to establishing an RDSP, a long-term savings plan for individuals with disabilities. The government offers matching grants of up to $70,000 and bonds of up to $20,000 for low-income families. This plan allows for tax-deferred growth on investments and can significantly contribute to the long-term financial security of the person with a disability.

Canadian Dental Care Plan

As of June 27, 2024, adults with a valid DTC certificate are now eligible to apply for the Canadian Dental Care Plan. This plan provides more affordable access to essential oral health services, covering various dental procedures such as cleanings, fillings, and dentures.

Qualified Disability Trust (QDT)

A QDT is a specific type of testamentary trust that offers tax advantages for beneficiaries with disabilities. Important aspects include:

• It must be set up through a will and take effect after the death of the individual creating it.
• The trust benefits from graduated tax rates, unlike most other trusts which are taxed at the highest marginal rate.
• To qualify as a QDT, the beneficiary must be eligible for the DTC certificate.

To take advantage of these benefits, it’s crucial to apply for the DTC by completing the Disability Tax Credit Certificate (Form T2201) and having it certified by a qualified medical practitioner. Remember, the DTC is designed to provide long-term support, so once approved, you may have this status for life, although periodic renewals might be required.

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Your Estate News

The "Great Wealth Transfer" May Disappoint Younger Generations Who Are Expecting to Inherit

A recent Vanguard Canada survey, regarding the "great wealth transfer" of $1 trillion from boomer parents to their millennial children, reveals a significant gap between younger Canadians' expectations and the reality of the projected inheritances from their parents.

Key takeaways:

• 34% of Canadians aged 18-34 consider inheritances crucial for their financial goals.
• However, 31% of older Canadians don't expect to leave an inheritance or are unsure about it.
• Economic pressures, including inflation and rising living costs, are affecting both generations.
• Only 32% of Canadians include wealth transfer/estate planning considerations in their financial plans.

The survey highlights the importance of better financial planning and communication between generations. With 25% of respondents over 55 having no wealth transfer plan and only 15% working with a financial advisor on the process, there's a clear need for better preparation.

This "great wealth transfer" presents both challenges and opportunities. For younger Canadians, it's crucial to develop financial strategies that don't overly rely on potential inheritances. For older generations, open discussions about wealth transfer can help manage expectations and ensure smoother transitions.

As the financial landscape evolves, bridging this expectation gap will be key to ensuring financial security, reducing the risk of estate litigation and enhancing family harmony around inheritance expectations.

Your Estate Read

Writing Forever Letters

Ethical wills, also known as legacy letters or forever letters, are powerful tools for passing on intangible wealth such as values, stories, and family history to future generations. Two recommended books can guide you through the process of creating your own ethical will:

​The Wealth of Your Life: A Step-by-Step Guide to Creating Your Ethical Will​

Author: Susan Turnbull

This practical workbook is ideal for self-starters who want to craft their own ethical will. Key features include:

• Thought-provoking guidance and worksheets
• Lists of values to consider writing about
• Questions to help narrow down your intentions
• Short, real-world examples illustrating the power of using your authentic voice

The book is designed as a tool, with a spiral-bound format and clear, graceful steps to guide you through the process. Turnbull suggests starting with a short message capturing the most important things you want to say, which can be expanded later.

​For You When I Am Gone: Twelve Essential Questions to Tell a Life Story​

Author: Rabbi Steve Leder

This inspirational book offers a unique approach to crafting an ethical will:

• Provides 12 carefully curated questions to elicit meaningful stories
• Includes rich examples of ethical will excerpts from people of diverse backgrounds
• Emphasizes the urgency of sharing your story and values with loved ones

Rabbi Leder’s work is praised for its thoughtful approach and the quality of its examples. The book encourages readers to answer each question as they finish its chapter, potentially yielding more than just an ethical will.

Both books emphasize that "what you have learned is as valuable as what you have earned," encouraging readers to pass on their wisdom and experiences to future generations. By using these resources, you can create a meaningful ethical will that preserves your legacy and strengthens family bonds.