Firehall Fest a Smashing Sunfilled Success - Old Ottawa South

The OSCAR - OUR 36 th YEAR
Page 34 JUL/AUG 2008
by Rick Sutherland, CLU,
CFP, FDS, R.F.P.
The bond between a grandchild
and grandparent is very special.
Often grandparents decide to
leave a gift to their grandchildren in
their will. This extremely generous
gesture can be fraught with challenges.
Here are a few things to consider prior
to implementing this decision.
It is important to recognize the fact
that more grandchildren may arrive
following the death of grandparents.
When grandparents leave gifts to their
grandchildren who are alive at the time
of death, resentment can sometimes
arise for the grandchildren who are
born at a later date. In order to prevent
this occurrence grandparents can
leave their estate to their children who
can divide the money accordingly to
Leaving Money to Grandchildren
all current and future grandchildren.
In some cases grandchildren left
with an inheritance from grandparents
may end up wealthier then their
parents. In this scenario, it is often
found that the children whom inherit
their grandparent’s wealth may have a
tendency to be more difficult and tend
to take on a cavalier nature.
Problems can arise if no age is
specified in the will, specifically if
the grandchildren are under the age of
majority. In this case the province will
take control of the money until such
time as the grandchild reaches the age
of majority. The age of majority varies
among jurisdictions between 18 and
19 years of age. Here in Ontario the
age of majority is 18.
Even if the grandchildren are at
the age of majority it is sometimes
advisable to establish a testamentary
Financial Divorce Specialist
Avoid costly mistakes with professional financial
assistance in the division of assets.
Contact: Rick Sutherland, CLU, CFP, FDS, R.F.P.
1276 Wellington Street, Ottawa ON K1Y 3A7
Phone: (613)798-2421 Email: rick@invested-interest.ca
Guidance, Protection
and Peace of Mind.
Anna E. Sundin, Barrister & Solicitor
GEnErAl PrActicE includinG:
Family Law, Wills, Real Estate, Incorporations, Litigation and Collaborative Family Law
– A Cooperative and Dignified Approach to Separation and Divorce.–
trust and appoint a trustee who will
apply conditions on how much and
when the grandchild actually receives
the money. If the grandchild is a minor
the trustee can be given instructions in
the will with directions and conditions
when minors will receive their
inheritance.
A trustee is given investment
powers over the money and other
assets until the beneficiary reaches a
certain age. Although the beneficiaries
of the trust have an interest in it,
the trustee is the legal owner of the
property held in the trust and has the
authority to control the management
of the assets. The trustee’s obligations
include making investment decisions
and preparing and filing income tax
returns on behalf of the trust.
A testamentary trust has
additional tax benefits. Unlike other
By Anna Sundin
trusts, a testamentary trust is treated
as a separate taxpayer and enjoys
graduated tax rates on income. A
testamentary trust has non-tax related
benefits including, but not limited
to being creditor proof. This means
that beneficiaries, lenders or spouses
cannot attack the trust.
Care must be exercised when
planning gifts to grandchildren. You
want to make sure that your gift is
appreciated and achieves your desired
objectives. Your grandchildren will
appreciate it.
This is a monthly article on
financial planning. Call or write to
Rick Sutherland CLU, CFP, FDS,
R.F.P., of FundEX Investments Inc.
with your topics of interest at 798-
2421 or E-mail at rick@investedinterest.ca.
Local Anti-Terrorism
Measures?
Members of the Eastern Ontario bar and those requiring access to
the Ottawa court house were recently advised that as a result of
the trial of the first person to be charged under Canada’s Antiterrorism
Act, beginning on Monday, June 23, 2008, new security measures
will be taken at the Courthouse.
These include:
· Barricades at the circular driveway at the entrance of the courthouse
and at entrance of the parking garage. Police patrol and police vehicles will
monitor these areas.
· Parking meters on Elgin Street, from Lisgar Street to Laurier Avenue,
will be hooded, making it a non-parking and non-stopping area. Vehicles
left unattended will be immediately removed at the owner’s expense.
· Trial proceedings will be held on the third floor where there will be an
overflow court (with live video feed), if necessary. There will be screening
of everyone wishing to attend the proceedings and access will be controlled
on the third floor of the Courthouse.
As I was starting to type this, an electronic “Wizard” came on and advised
me that my use of the word-processing application had become unstable
and required me to make an electronic report to the software company. I
was not allowed to ignore the “Wizard” command and was prevented from
continuing with the writing of this article. After I sent the electronic report,
I tried to return to the article I had been typing, but it had been deleted and I
had to start over again. I wonder if this had anything to do with the content
of my article.
Has the heightened security at the Court House been successful? Is
my paranoia a result of these ‘protective’ measures? It would seem that
rather then creating an atmosphere of security, these protective measures
are intensifying fear, paranoia and hatred. Anti-terrorism measures, such as
those at Court House, in addition to the cost of the extra manpower, the
metal detectors, the SWAT teams on alert, the reduced access to our public
buildings by the public, and the delays in conducting our business, are
producing a rise in social distrust and fear.
As our social bonds are severed, our communities become dangerous,
soul-less places rather than strong networks of support. I believe that the
security that comes from strong communities is better than any monitoring.
When we know our neighbours, we learn to trust them and as we demonstrate
that trust by working together on community projects, we create a place
where everyone feels valued and included. Then there is no need to strike
out at each other with violence.
Averting violence in this way is not without a price tag; however, it has
incalculable value. It is the value of a complex, vibrant community which
provides a safe haven for human creativity, where the best of the human
spirit can soar.
Constant electronic monitoring and security measures exist in many
large cities now.
We can create more security in our neighbourhood, one relationship at a
time. Get together with your friends and neighbours this summer.