Are You the Greatest Risk to Your Net Worth

Lisa HandleyBlog, Family Business Succession, FBS-3, Financial & Estate Planning, Freedom, Investment Management, Philanthropic & Legacy Planning, Stewardship, Wisdom for Life

Are You the Greatest Risk To Your Net Worth?

How could this happen?
• If you passed today, could your spouse say, “I know exactly what I’m supposed to do now. I am well versed in our financial affairs and have been involved in our decisions. I’m prepared and surrounded by the right people”?
• 80% of women will experience widowhood. The shocking reality is the average age of being widowed is 57! Statistics show the financial position of a widow erodes significantly over 20 years. This is not a reflection of ability, it’s the result of limited involvement in financial affairs resulting in a lack of experience which leads to making poor choices.
• We know life is so busy that each spouse hardly has time to address their responsibilities without having to know about those of the other spouse. However, this is one area you can not afford to leave exposed. Each spouse does not need to know every detail, but both do need to have a working knowledge, be involved in key decisions, know the steps to take in the event of a tragedy and who they can trust to help.

Where is your risk?
• If you are a business owner, how quick would the business value crumble if you were gone? Could the business survive long enough to be sold? Would it be a fire sale? Would staff stay and keep it going? Could they maintain the value? Are plans in place; are staff aware of these plans and rewarded to carry them out? Does your spouse know your preferences as to how the business should be sold?
• Is your net worth in just a few assets (real estate, private business)? What level of expertise is required to maintain the value? Who other than yourself can manage it?
• Have you determined what percentage of your estate you will give to Revenue Canada? (If you have not put plans in place, they typically take 50% of some assets)
• Do you know without a doubt all of your personal and corporate structures minimize tax and maximize future flexibility? What will the impact be on my family? Will it be a blessing or a curse?
• Is there enough cash immediately available personally and in the business to pay tax, cover expenses and carry out your plan without financial concern? Is there staying power?
• Has your spouse been involved in investment decisions to know how to make wise choices to ensure their financial future will not be eroded?

The multi-million-dollar question
What would it be worth to you (and your family) to have these questions answered, proper plans in place and these risks minimized? One of the first things we typically help our clients do is eliminate the multi-million-dollar tax bill from their estate. Life will not become less busy. These risks will not go away by themselves. The good news is help is immediately available to change your situation. Do not let the urgent things keep crowding out the important things when so much is at stake, give us a call today.

Even if your assets are diversified or outside of a private company, history has proven the majority of estates are eroded far beyond what they should be.

Gain Clarity, Contentment, and Freedom in your Family Wealth.

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