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CLIENT SITUATION

The people: Jill, 88, and her children and grandchildren

The problem: Would it be better for her heirs if she gifts the acreage to a conservation group and gets a tax refund or should she leave it to her estate?

The plan: Gift the acreage, even though it will mean a little less money for her heirs. Shift her savings to include suitable mutual funds or exchangetraded funds. Consider giving her heirs an advance on their inheritance.

The payoff: A better financial situation all around and an important example for the grandchildren.

Monthly net income: $7,000

Assets: GICs $356,785; TFSA $190,525; residence $585,000; land $100,000; estimated present value of pension plan $400,000. Total: $1.6-million

Monthly outlays: Property tax $500; water, sewer, garbage $150; home insurance $155; heat, electricity $400; maintenance, security $340; garden $250; transportation $465; groceries $400; clothing $100; gifts $1,600; charity $700; dining, drinks, entertainment $350; personal care $100; subscriptions $100; health care $350; communications $245; TFSA $700. Total: $6,905

Liabilities: None

REPORT ON BUSINESS

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2021-10-23T07:00:00.0000000Z

2021-10-23T07:00:00.0000000Z

https://globe2go.pressreader.com/article/282067690137914

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