Blog | Formalwill.ca

It’s always good news to hear about someone (working an ordinary job) who winds up donating thousands in their Last Will and Testament to their community. That’s a common refrain among lottery winners, that they’ll donate a fortune to their community, but it’s rare to hear this from people who simply work ordinary jobs. How do they amass large fortunes?

Being frugal helps.

It’s always assumed that teachers are underpaid despite performing a very important job: molding the minds of the youth. We often hear stories about teachers, who, despite loving their jobs, have to quit out of necessity. (It’s a sad state of affairs when bartending at night can sometimes garner more money than teaching can in certain places). There are also stories on the news about teachers who struggle with more than one job to make ends meet.

That’s why this story is refreshing:

Patricia McCandless taught at Springboro High School for seven years in the 60’s. The school must have left a great impression on her, because she left a whopping fortune to the school after her death in 2018. She got a degree in library science after resigning from her job as a teacher, but she must have loved the place so much. She did, after all, leave behind a fortune of $471,644 (her entire estate), to the school.

The reason as to why the school left an impression on her may lie in the fact that working there was her first teaching job. You can read more about the fortune she left behind, here.

Wealth transfer and taxes

Millennials and GenZ are poor; these two younger generations are both facing emotional and financial turmoil in their lives. It’s no secret that with the 2008 recession, the global pandemic, and the inflationary cost of everything, it is not secret that Millennials and GenZ have very little in the way of savings. Wealth is (supposedly) being hoarded by the Boomer generation and that money is going to be transferred to the younger generations. Millennials, particularly older Millennials, are running out of time to generate wealth, as many are approaching middle age. They’re no doubt looking forward to a wealth transfer to help them settle in their lives.

Millennials and GenZ are facing an astronomical cost of everything and older Millennials are running out of time to have children (if they are having children). Will the wealth transfer help?

The great wealth transfer of $68 trillion is on the horizon. Boomers (the generation born after World War 2) will pass on $68 trillion to the next generation. But there are new tax laws in place; some adult heirs may be expected to withdraw from their IRA’s within a decade of inheritance in order to pay taxes. What does this mean for your inheritance? What does the $68 trillion wealth transfer mean for you?

Son of Austin Powers actress cut from grandfather’s fortune

Remember that famous movie Austin Powers? Remember Powers’ right-hand woman, Vanessa Kensington, played by Elizabeth Hurley? Of course you do! Unfortunately, Hurley (much like the rest of us) is not doing too well: she is devastated that her son has been cut out from his grandfather’s $250 million dollar fortune.

With his mother a famous actress, Damien Hurley will no doubt be set for life, with the vast connections and resources his mother has, but it is more than just about money, people want to feel connected with with their family members. Being cut out from an inheritance, can feel as though they are being left out and ostracized. Steve Bing was the father of Damien and wanted his son to be financially secure. Both Damien and his sister, Kira, were cut off from their grandfather’s inheritance. Dr. Peter Bing, the father of Steven Bing, had refused to acknowledge the two siblings, as they were born out of wedlock. Kira Hurley, the daughter of Elizabeth, tried access some of her grandfather’s funds (in Trust) that she believed she qualified for.

The trust in question was arranged as follows: “any grandchild must be “raised by my children as part of their families” and that his trust “would not benefit any person bought out of wedlock unless that person had lived for a substantial period of time as a regular member of the household.” This is a complicated situation, to say the least!

You can read more about the whole debacle here: Hurley’s son cut off from $250 million dollar fortune.

President Biden has a new plan for inherited property

Owning a property is always nice; inheriting a property may be the only way the younger generation can own a house. In 2021, President Joe Biden proposed a new plan to help pay for the American Families Plan (worth $1.8 trillion). His proposal was going to impact families with more than $1 million in tax gains. (It doesn’t appear that lower income families have anything to worry about with this new proposal). The American Families Plan are investments for education, income support for lower income families, and tax breaks for lower income families. You can read more about the American Families Plan.

Some are against the law; suggesting the way things are done without the proposed new law in place, saves taxpayers $41 billion per year. That is from an organization called the Joint Committee on Taxation. Without the proposal in place, people who inherit property may defer taxes until the property is sold.

The price for homes in the U.S. is growing, and rapidly exceeding $1 million. Sales of home worth more than $1 million was particularly prominent between February 2020 to 2021.

How does this plan by President Biden work? Read more below:

President Joe Biden’s plan for inherited real estate

Canada’s #1 Estate Planning website

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