Holding Power over your parent's finances?


Power of Attorney is an integral part of estate planning; it is a legal document which allows someone else the ability to act on your behalf to control your finances and assets. If you ever become incapacitated or unable to look after your finances, a Power of Attorney ensures that you won’t have to worry. 

So, what would happen if you were suddenly given control over say, your elderly parents’ finances? What would you do? Would you know what your roles and duties as your parents’ Attorney would be? 

Check out this informative article form MONEYSENSE for answers on overseeing your parents’ finances: Looking after Mom and Dad.

The Canada Pension Plan (CPP) provides a number of benefits, the most significant of which is the retirement pension that forms an integral part of most Canadians’ financial plans for retirement. The Quebec Pension Plan (QPP) provides parallel benefits for Quebec residents. Every contributor to these government-sponsored pension plans will eventually need to make important decisions about when to begin receiving these valuable benefits.

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Pension Income Splitting

Individuals in receipt of eligible pension income can allocate or split up to 50% of the income with their spouse or common-law partner, and the allocated income is reported as the spouse’s taxable income. This allows the shifting of income from a higher-income spouse to a lower-income spouse, enabling the couple to reduce their combined income tax liability and increase cash flow during retirement.

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