Insights: Practical executor considerations, corporate tax rates + Caesar's 100th
Good reads:
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·???????? Weekly Investment Strategy
·???????? The U.S. Real Estate Market in Charts
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Best quote of the week:
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“Don’t give up at half time. Concentrate on winning the second half.” – Paul Bear Bryant
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Best soundbites of the week:
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Talking about your estate planning isn’t always the most exciting or comfortable of topics, but it is an important thing to do. Questions often arise about executors – who to name and what to consider.
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Here are some practical considerations:
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It can be very impractical for an executor to administer an estate when they do not reside in the same province, or country, as the deceased. Some aspects of the estate administration can be very difficult to accomplish if the executor is not physically present. For example, if the executor needs to deal with household items, prepare real estate for sale, or access a safety deposit box or storage unit, it is generally much simpler to accomplish these tasks when the executor can present themselves in person.
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If the executor chooses to travel, they must account for time taken away from work, and family, and must justify the travel cost to the estate or bear the cost themselves. The executor may be unable to travel for health or other reasons. At times, there may even be travel restrictions that prevent the executor from travelling to the province where the estate assets are located.
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The executor may choose instead to hire agents to act on their behalf to administer the estate because of the difficulties involved with travel. This can be a suitable solution provided that the executor is careful in choosing a professional and trustworthy agent.
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Here are some additional concerns for an executor outside of Canada:
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As a rule of thumb, the executor(s) should always be Canadian residents. In addition to the tax issues discussed above, an executor who resides outside of Canada is likely to encounter other issues while administering the estate. The executor may have reporting requirements in the country where they live. For example, an executor resident in the USA is required to report all assets over which they have control to the Internal Revenue Service (IRS). Most USA residents may be less than thrilled at the idea that the IRS may audit their estate administration. In addition, Canadian financial institutions and other professionals may have restrictions imposed upon them, under legislation or under their governing body, with respect to taking instructions from non-residents. For example, this means that an executor who is seeking to give investment instructions to the deceased’s investment firm may find that the firm cannot accept those instructions. Equally, a bank may not be willing to release funds to a non-resident without more rigorous vetting. These restrictions can be impractical at best and insurmountable at worst.
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The above excerpts were from a Solus Trust report. If you’d like a copy of the entire document, shoot me an email and I’d be happy to send it to you.
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Best chart of the week:
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Canadians definitely pay a fair bit of tax, including corporations. It could always be worse though...
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Not sure I’d classify this as the “best” visual, but interesting nonetheless.
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In case you missed it:
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In my latest ChartMasters with Asset TV, I explain why presidential reelection years tend to be good years for the equity market. Watch the full interview here:
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Beyond the markets:
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In case you were wondering, ceasar salad turned 100 years old this week. Here are some interesting facts about it:
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·???????? Italian immigrant Césare Cardini is said to have invented the dish on July 4, 1924, at his restaurant, Caesar's Place, in Tijuana, Mexico.
领英推荐
·???????? Caesar’s – an elegant restaurant Cardini opened in Tijuana a few years after the salad was born – says it still makes as many as 300 Caesar salads each day.
·???????? The original recipe included a whole coddled egg, lemon juice and Worcestershire sauce, and did not include anchovies. Instead of emulsifying the dressing before tossing the salad, the lettuce was laid in the bowl and topped with the dressing ingredients, one by one, then mixed.
·???????? An estimated 35% of U.S. restaurants have Caesar salad on their menus.
·???????? Nearly 43 million bottles of Caesar salad dressing – or $150 million worth -- have been sold in the U.S. over the past year.
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Looking to make Césare Cardini’s original recipe?? Here you go:
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Ingredients:
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1 medium head romaine lettuce, outer leaves discarded and separated into individual leaves
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1 coddled egg yolk (see note)
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Juice of 1 lime
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1 1/2 teaspoon Worcestershire sauce (preferably Lea & Perrins)
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1 teaspoon freshly ground black pepper
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Shy 1/2 cup extra-virgin olive oil
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2 tablespoons freshly grated Parmigiano-Reggiano cheese
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2 slices baguette, toasted (2 round croutons)
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Directions:
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Using a large open bowl (wooden, if you have one), add the lime juice, the egg yolk and the Worcestershire sauce and whisk or emulsify with a wooden spoon or spatula. Grind in the black pepper and mix in.
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Slowly add the olive oil while emulsifying further and then 1 tablespoon of the cheese. Mix well. Add the romaine leaves longways and gently roll them over each other so that they gather up as much of the dressing as they can.
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Plate the salad onto 2 chilled plates, the romaine leaves spine-side up and topped with the toasted baguette slice. Sprinkle the remaining 1 tablespoon of grated cheese over the plated salads and croutons.
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Note: To coddle an egg, bring a small pot of water to a rapid boil. Meanwhile, have ready an ice water bath in a bowl in the sink. Carefully lower the egg into the boiling water and precisely time exactly 1 minute when the water begins simmering again (almost immediately). Remove the egg to the ice water and let it cool well, 3-4 minutes, stirring gently. Crack the egg at its fat end and allow the liquid-y white to drain away, saving the yolk in the palm of your hand or on a large spoon for making the Caesar salad dressing.
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Sources: ABC News, UC Health, The New York Times
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Thanks for reading, and I wish everyone a great 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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