Insights: 4 common estate planning questions, managing market volatility + the King of Rock n' Roll

Good reads:

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·???????? Weekly Investment Strategy

·???????? Snowbirds, take note: The U.S. says these foreign nationals must register

·???????? Three non-tax reasons for teenagers and students to file a tax return

·???????? What Happens in a Recession?

·???????? Charted: The Most Powerful Passports in 2025

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Best quote of the week:

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“Do something worth remembering.” – Elvis Presley

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Best Soundbites of the Week: Four Common Estate Planning Questions

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Death and taxes are not the most pleasant topics to discuss, so they often get pushed down the to-do list. However, it's important to review your plans every five years or so, or sooner, if you experience a major change in your situation. Unfortunately, many people tend to delay this much longer.

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Recently, I met with clients who were updating their wills. Their primary concern was their daughter, who is soon reaching the age of majority. They want to ensure her future inheritance is used for her benefit, allowing her time to grow into her wealth without making missteps that could have long-term consequences. Additionally, they want to ensure she has assistance and support in the event of a catastrophe, such as the unexpected passing of both parents and the need to manage the estate.

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Since this is a fairly common situation, I thought I’d share a few key questions and answers that came out of our conversation with my estate planning partner, Senior Trust Advisor Patricia Chartrand . If you’d like to discuss your unique situation, please reach out, and we can set up a meeting with my team.

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Q: Who should be appointed as executor while our daughter is still relatively young?

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A:?While your daughter is still young, it may be a good idea to have a corporate trust company act with her as a co-trustee. This means the company accepts the full burden of administration, and she can be involved if she wishes, but can also choose not to be if she is finding it too much.

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Q: How can charitable giving benefit our estate plan?

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A:?Charitable giving is an option to redirect your tax dollars. As part of your will review, it is good to understand how much unrealized capital gains you carry. Upon the last spouse to die, there is a deemed disposition, which typically creates the biggest tax bill an individual will ever have. By naming a charity to benefit from your will, you can redirect the tax bill towards something of value to you.

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Q: What are the benefits of a trust for your daughter?

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A:?A trust for your daughter can safeguard her assets while providing her with benefits. One approach is to set up a discretionary trust where she receives income monthly and has the right to ask for capital for health, education, property purchases, and catastrophic events. As an example, she would receive 50% of the capital at 25 years of age and the remainder at 30 years of age. Another approach is to have the assets in a trust where she becomes her own trustee at 25 years of age, with full discretion over the trust.

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Q: Why is a trust a good option for protecting family assets in the event of a marital breakdown?

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A:?Relationships can be unpredictable, and it's possible for our children to become involved in marriage-like relationships without fully realizing it. This is one of the reasons why setting up a trust can be so beneficial. A trust is a private document, and assets in a trust are not subject to creditor claims. A trust can help protect family assets from being integrated into a communal pot, safeguarding them from potential marital claims. This way, your child's inheritance remains secure, regardless of their relationship status.

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If you have any questions or need assistance with your estate planning, please don't hesitate to contact us. We're here to help you ensure your loved ones are taken care of.

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Best Visuals of the Week:

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The markets have been quite volatile lately, and the constant barrage of media headlines certainly doesn't help our peace of mind. However, it's important to take a step back and reflect.

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Consider this example: if you focus on the recent performance of the S&P 500, you might feel disheartened. In the short term, it seems like most of the gains made since the summer have been erased:

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However, if you zoom out and look at the S&P 500's performance over the last five years, the recent volatility is just a minor blip. As of the time of this writing, the S&P 500 is up over 140% from the Covid lows:

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It's challenging to ignore the headlines, especially when they are everywhere, but it's crucial to try. We've just experienced two years of 20%+ gains for the S&P 500, so a drawdown is quite normal. In fact, a 10% market correction is also typical, occurring on average once per year. It never feels good, but remember, we wouldn't have a market if it only went straight up.

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Taking a long-term perspective can help you stay calm and focused on your investment goals, despite the short-term noise.

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In the Media:

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In my recent interview with Jenna Dagenhart on Asset TV Canada, I discussed some of the most prevalent misconceptions among investors. I explored why these misconceptions have gained traction in recent years and highlighted one particular misconception that investors should be especially cautious of in 2025. You can watch the full interview here:

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You’re Invited: 2025 Tax Season Preparation and Federal Income Tax Update

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This webinar will highlight recent federal tax legislative and administrative announcements and how they will impact your upcoming tax filings, notably:

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·???????? The latest developments to the capital gains inclusion rate.

·???????? Trust reporting obligations.

·???????? Implementation of AMT changes.

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Uncertainty about the federal government’s leadership is also adding to the challenges of long-term tax planning. How can clients navigate this environment of uncertainty in their personal tax and financial affairs?

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Please join us to learn how these changes may impact the 2025 tax season. Reply to this email for a registration link.

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Tax Season Support – Working With Your Accountant:

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As we move through tax season, we wanted to remind you that we’re happy to work directly with your accountant to help ensure a smooth and efficient filing process.

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If you haven’t already done so and would like us to liaise with your accountant, please send an email introducing us and granting your approval for us to communicate regarding your 2024 taxes (this authorization needs to be renewed annually). Kindly CC my assistant, Saundra, on the email as well.

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If you prefer to manage this yourself, please don’t hesitate to reach out if you need any documents or have any questions. We’re here to help.

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Beyond the markets:

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Apparently one of Elvis Presley’s former homes listed in Los Angeles recently for US$24.5 million. He lived there in the late 1960s and ’70s with his wife, Priscilla, and daughter, Lisa Marie.

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Naturally, this got me thinking about the King of Rock n’ Roll, so here are some interesting facts about him:

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• Elvis had a twin: On January 8, 1935, Elvis Aron (later spelled Aaron) Presley was born in East Tupelo, Mississippi, about 35 minutes after his identical twin brother, Jesse Garon, who was stillborn.
• High school days: Elvis attended Humes High School, where he failed a music class and was considered quiet and an outsider.
• Graceland purchase: Elvis bought Graceland when he was just 22 years old for $102,500.
• Graceland's history: Graceland was built in 1939 by Dr. Thomas Moore and his wife Ruth on land that was once part of a 500-acre farm. It was named in honour of the original owner's daughter, Grace, who was Ruth Moore’s great-aunt.
• Colonel Tom Parker: Elvis’ controversial manager, Colonel Tom Parker, was a former carnival barker. He helped Elvis achieve enormous success but took commissions as high as 50% of Elvis' earnings, drawing criticism for potentially holding Elvis back creatively.
• Military service: Elvis served in the Army after he had already become famous.
• International sales: An estimated 40% of Elvis’ music sales have been outside the United States. However, except for a few concerts in Canada in 1957, he never performed on foreign soil.

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Source: History

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Thanks for reading, and I wish everyone a wonderful weekend!

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Cheers,

Kim

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Kim Inglis, BCom, CIM, PFP, FCSI, RIAC

Senior Portfolio Manager

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T: 416.777.6417 (Toronto)

T: 604.654.1160 (Vancouver)

T: 250.979.1803 (Kelowna)

TF: 1.877.363.1024

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www.inglisprivateinvestmentcounsel.com

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The opinions expressed in this newsletter are those of the Financial Advisor Kim Inglis, BCom, CIM, PFP, FCSI, CAFA and not necessarily those of Raymond James Ltd. (“RJL”) or Raymond James (USA) Ltd. (“RJLU”).? Statistics, factual data and other information presented are from sources, believed to be reliable but accuracy cannot be guaranteed. It is furnished on the basis and understanding that Raymond James Ltd. and Raymond James (USA) Ltd. is to be under no liability whatsoever in respect thereof. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Raymond James Ltd. and Raymond James (USA) Ltd. financial advisors may only transact business in provinces and/or states where they are registered. Follow-up and individualized responses involving either the effecting of or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in provinces or states where the financial advisor is not registered. Raymond James Ltd. is a member of the Canadian Investment Regulatory Organization (CIRO) and the Canadian Investor Protection Fund. Raymond James (USA) Ltd. is a member of FINRA/SIPC. Raymond James (USA) Ltd. (RJLU) and advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. This provides links to other Internet sites for the convenience of users. Raymond James Ltd. is not responsible for the availability or content of these external sites, nor does Raymond James Ltd endorse, warrant or guarantee the products, services or information described or offered at these other Internet sites. Users cannot assume that the external sites will abide by the same privacy policy which Raymond James Ltd adheres to.

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