WHEN YOUR SPOUSE DIES

While the loss of any loved one is traumatic, the death of a spouse is especially hard. It means many changes to your life and your plans. Your advisor can help with strategies and advice for balancing your priorities and making progress towards achieving your financial goals in your situation. You should review your priorities and consider asking your advisor these questions:

• How do I transfer my spouse’s investments into my name and what documents will I need?
• Will we need to create a new investment portfolio?
• Do I need a new will?
• How will my estate plans change?
• Should I consider transferring any assets to my family now?
• How will my budget change?
• If I decide to sell my home, what are the implications?
• Will I need new or different insurance coverage?
• What is involved in settling the estate?

If your spouse was receiving Canada Pension Plan, there will also be benefits you can apply for. You may be eligible to receive a lump sum death benefit of up to $2500 and there may also be a survivor’s pension payable. The forms you require will be available from any Service Canada centre or online at: http://www.servicecanada.gc.ca/cgi-bin/search/eforms/index.cgi?app=profile&form=isp1200&lang=e

There also may be benefits available for survivors under the Allowance for the Survivor Program, but conditions are rather restrictive. You may be eligible if you are 60 to 64 years old, your income was less than approximately $20,000 last year and you have lived in Canada for at least 10 years after reaching age 18.

You should contact Service Canada at 1-800-277-9914 and they will send you an application kit.

Your spouse’s assets will need to be distributed to you and any other beneficiaries. Different rules will apply to different types of assets. The assets in an RRSP or a RRIF can be transferred to you on a tax-deferred basis. You will have different options as to the new investment or plan depending on several factors including your age, so make sure you get advice as to the best option for you.

If your spouse had any non-registered assets at death you may be able to rollover those assets to you without immediate tax implications. Again, seek proper tax advice as to the various options.

If you are the Executor or Executrix, you will be responsible to carry out the terms of the Will, pay any estate debts and perhaps make funeral arrangements. You may want to call in outside professionals to assist you including lawyers or accountants, especially if the estate is complicated. Your advisor may also be of assistance with respect to your insurance, estate plans and investments.

Another one of the duties of the Executor or Executrix is to file any final tax return or returns on behalf of the deceased person. Canada Revenue Agency publishes a very useful guide called Preparing Returns for Deceased Persons, which is available at any Tax Services office or can be downloaded at http://www.cra-arc.gc.ca/E/pub/tg/t4011/. Again, it may be advisable to enlist the services of your accountant to file the final tax documents required.

If you have any questions or would like more information, please feel free to give me a call.

*This newsletter is solely the work of William Aldous for the private information of his clients. Although the author is a registered Mutual Fund Representative with Dundee Private Investors Inc., a DundeeWealth Inc. Company, this is not an official publication of Dundee Private Investors Inc. The views (including any recommendations) expressed in this newsletter are those of the author alone, and they have not been approved by, and are not necessarily those of, Dundee Private Investors Inc. Insurance products provided through Dundee Insurance Agency Ltd.