Estate Planning

Estate Planning: An individual’s property and assets — including real estate, bank accounts, life insurance policies, stocks, and personal property such as automobiles and jewellery. This article is about a “child” in their 50’s who feels “gutted” by the way in which their parent has set out their estate plan. 

A distraught sibling contacts an advice columnist seemingly out of desperation: the sibling and his/her brother are set to inherit money from their parents (money that they both assumed would be evenly split among them). Surprise, surprise, both the sibling and their brother were shocked to learn their parents would be dividing up their inheritance in one-fifths: one-fifth each among the following; the sibling, the brother, and the rest to be spread out among each of the brother’s children (i.e. the grandchildren). Their parents estate planning appears grossly unfair to the child in question: the person feels neglected, as they are the child the parents often reach out to in times of help. Therefore, the person in question feels slighted. What advice would you offer? Every child wants to feel loved on the same level as their siblings. It’s not always about the money but the feeling of being included. On the surface, the estate plan appears equitable as everyone is getting an equal share, but the child in question feels as though he/she went above and beyond for their parents. Depending on the situation at hand, there may be several reasons as to why the parents in question divided up their estate the way they did: perhaps one  needs more financial help than another; perhaps one child has more health issues than the others. If  the parents in question were to leave behind more of their assets in favour of the particular child feeling neglected, the other siblings would be resentful of their parents. Feeling undervalued and ignored, the person turns to an advice columnist for help: 

 Can I tell my parents their estate plan hurts my feelings?

Need a quick pick-me-up? A taxi driver from Nova Scotia left behind a massive fortune to his community; an inheritance that will be cherished for decades! We hear stories like this from time to time; someone working an ordinary job (e.g. a janitor or a teacher) who ends up surprising everyone after their passing. There’s a similar story about a janitor who died with millions to his name. There was also the teacher who left behind a sizeable donation to the school she taught at. An astronomical sum of money is bequeathed for the benefit of the community. The biggest question is: how did these people manage to save up millions from these types of jobs? Frugality and saving up every penny is usually the way they did it, but at the same time, they passed on without properly enjoying the money. Many people want that type money in their prime: they want to be able to enjoy vacations, paying off debts, etc. Is it worth it to save a fortune, but not to be able to save it?  

On the flip side, the taxi driver (and the janitor referenced in the article above) left behind millions to their loved ones. At least the money wasn’t squandered. 

This story is no exception: a retired taxi driver by the name of John MacLellan, who worked as a taxi driver for 63 years until his retirement at the age of 83, left an entire community astonished when he entrusted his fortune to the St. Martha’s Regional Hospital in Nova Scotia. Located in Antigonish, St. Martha’s Regional Hospital is the only catholic hospital in the province. He passed away at 96 with a fortune in the bank. The inheritance will be put to good use. 

How did John leave behind a whopping $1.68 million to a hospital? Maybe some answers could be found here. 

The sandwich generation has it rough: they’re juggling their finances, helping out their kids AND taking care of their elderly parents. In this article, we’re just focusing only on the elderly parents the adult children are trying to look after. We’ve written a lot in the past about the importance of taking care of your loved ones, including your elderly parents.

Parents may be reluctant to have a discussion on their financial matters. One place to start is having a frank discussion with your (elderly) parents about their finances. Their finances, bank accounts, offering advice, etc. A thorough look into their finances to offer support and advice can be useful. Offer advice, but don’t take over their finances. It is also important to be aware of their professional contacts: their attorney, doctor, insurance agents, financial advisors, etc. Also note that if you have siblings who can help, how the responsibilities will be divided up. If one sibling lives closer, can they shoulder responsibilities during the week, and if you live farther, can you take over other responsibilities during the weekend? Although it’s rarely discussed anymore, children may want to look at having their parents move into an inter-generational household, and help your parents out that way. 

 The following article is a good way to get started. 

Dave Ramsey is an American financial author, radio host, and motivational speaker. He is the host of a radio show called “The Dave Ramsey Show,” which is a personal finance talk show that airs on radio stations across the United States. Ramsey is known for his approach to financial management, which emphasizes the importance of saving money, living within one’s means, and becoming debt-free. He has written several books on personal finance, including “The Total Money Makeover,” which has become a best-seller. Ramsey’s financial advice is aimed at helping people take control of their finances and achieve financial stability and success.

Although Dave has often been praised as somewhat of a “financial guru” he has also been criticized as being outdated in his advice for the younger generation: for instance, Ramsey has been critical of remote work-from-home policies, working minimum wage jobs, and he has also been critiqued for his own employee policies. He has been criticized for allegedly discriminating against his own employees.

Despite all of this, he famous money mogul has helped thousands get out of debt. He’s also offered sound advice on how to choose an Executor for your Last Will and Testament. Should you, for instance, choose an Executor who lives nearby? Dave offers advice on this topic, which you can read here.