Part 3: Estate Planning & Review
In this third and final installment of our series on retirement planning, Tax Manager Mary Ann Donahoe explains why insurance and a current will are such important parts of your future plans.
The first and second posts in this series looked at transitioning your business and ensuring optimal tax flow upon reitrement. Obviously, knowing who will take over your business and having enough money to maintain your current lifestyle are hugely important when planning for your golden years. Two other crucial considerations are your will and proper insurance coverage, both business and personal. Each of these help to ensure that your wishes are adhered to and that you're fully prepared for whatever the future holds.
Part of MRSB's Comprehensive Review & Tax Planning (CRTP) process is to review your current insurance policies and to liaise with your insurance provider to ensure that proper coverage is in place; this helps to achieve financial security for your estate and your family. In the event of the untimely death of yourself or a partner, or an unforseen emergency, you want to be sure that your business can withstand any ensuing financial blows. There are a number of insurance products available depending on your needs. Although we are not in the insurance business, we are able to analyze any potential tax or financial impacts of losing key players in your business, and can recommend what type of insurance would best suit your situation.
Even if you've had a policy in place for several years, it can be beneficial to take another look and make sure it's still the right fit.
Whether it is Term Insurance (where you reeive protection for a pre-determined period of time), Whole Life (where you receive protection for your lifetime and the policy accumulates value that you can borrow against) or Disability Insurance, there are lots of options and the coverage required is different for everyone. A cost/benefit analysis is always a good idea, as well as considering who owns the policy and who the beneficiaries are. Our role is to outline your needs and, in conjunction with your insurance provider, recommend the correct mix of coverage. Even if you've had a policy in place for several years, it can be beneficial to take another look and make sure it's still the right fit. A well thought-out insurance plan can allow for shareholder buyouts, estate taxes and potentially estate and family security. It's a lot to sift through, but well worth the effort.
If you don't yet have a will, you can read about the importance of this document here. If you've already taken this step, think about the last time you had your will reviewed or updated. Plans, ownership structures and laws change, and it's crucial to keep your will up to speed. Part of the CRTP process is to ensure that your will is properly structured based on your current financial situation, your assets and of course, your wishes. As tax advisors we can assist with the will review and then work with your lawyer to make any necessar adjustments. One of our main objectives through the CRTP process is to maximize wealth and minimize any potential tax burdens that you or your family may face.
Perhaps the most important take-away from this blog series is that retirement planning is an ongoing process; simply having the initial, verbatim conversations about a will, insurance and transitioning your business are not enough to ensure that your retirement will be as you've envisioned. Revisiting your plans on a regular basis can save you headaches down the road and set you up for a happy, worry-free retirement. We think you deserve it, don't you?
MRB Group is proud to be an independent member of DFK Canada, a nationwide association of independent accounting firms and business advisors. Each year DFK goes all out with Movember, encouraging gents from all member firms to get involved and grow their best 'staches for a great cause.
We'll be tracking the weekly progress of four MRSB guys who have decided to get groomed up in support of sparking conversation and raising funds for vital men’s health programs.
Cory MacEwen, IT Manager
John Connolly, Senior Tax Manager
Chris Arsenault, Accounting Technician & Student
Lloyd Compton, Partner
Good luck, guys! Check out DFK's Movember campaign progress here.
MRSB Consulting Services would like to extend its congratulations to the PEI BioAlliance, which recently announced it will receive up to $3.8 million in funding from the federal goverment to support bioscience-based companies in Prince Edward Island.
The BioAlliance is one of only 15 organizations selected across Canada for funding through the new Canadian Accelerator and Incubator Program (CAIP) that hopes to accelerate business development. This sector has seen phenomenal growth on PEI in recent years with 40 companies, 1,200 jobs and a goal to attract 30 to 40 new companies to the province in the next five years.
"We think our track record established by the strong growth of bioscience companies and partnerships among our businesses, research and government agencies has served us well in this competition and will contionue to do so throughout the life of this project and beyond," said PEI BioAlliance Executive Director Rory Francis.
Here are some photos - courtesy of the PEI BioAlliance - taken during their funding announcement in Charlottetown.
A crowd gathers to celebrate the PEI BioAlliance's recent news
Federal Fisheries Minister Gail Shea
Innovation Minister Allen Roach
PEI BioAlliance Executive Director Rory Francis addressing the crowd
We are sure that this new funding will lead to exciting and innovative developments for the biosciences sector and for the Prince Edward Island economy.
Well, another fall season is upon us and it's hard to believe that the PEI Marathon has already been and gone. MRSB Group once again held the role of Title Sponsor, and we always feel privileged to have the MRSB Marathon - the weekend's ultimate attraction - bearing our name. Here are a few photo highlights of this year's events. And, because we live on PEI after all, you might see a familiar face or two!
Our team poses for a couple of group shots in the office before race weekend.
There was great energy in downtown Charlottetown come race day!
Thanks to all the hard-working volunteers who supported all Marathon participants.
Here comes Mary Ann Donahoe of MRSB Tax Services - way to go on completing the 10K Walk!
A few MRSB team members along their Corporate Relay Team route.
And a big congratulations to Chris Matters of Llink Consulting on completing the MRSB Marathon!
Our Corporate Relay Team after crossing the finish line together.
We didn't waste any time in heading back to the office for some well-deserved treats and social time.