There is a time for everything,
and a season for every activity under the heaven:
a time to be born and a time to die
(Ecclesiastes 3:1-2)
As we plan for our death, there are many things to think about. Have I updated my will and power of attorney? Have I taken care of all my financial obligations to my family and to my business? Have I thought about my charity and is my estate plan tax efficient? Along with these, another planning opportunity to consider is organ donation.
Why would I want to be an organ donor at death?
According to the BC Transplant Society you are more likely to need a transplant in your lifetime than you are to be an organ donor. If this is the case, then the following questions arise. “If I needed an organ transplant, where would the organ come from? Also, if there is less than a 1% chance that I will qualify to be an acceptable donor, who will fulfill this shortage?”
Since there is a serious shortage facing us, let me clarify some questions around organ donation. Firstly, qualifying as a donor is not an easy process: you have to be on life support with no chance of survival as determined by two ICU doctors. The BC Transplant Agency is then contacted due to confidentiality to see if you are registered as a donor and if there is a suitable recipient. Your family is shown the donor paperwork to put them at ease. Secondly, the donor is treated with the utmost respect during the surgical recovery of the organs. The donor is then released to the families so that funeral arrangements can be carried out. Most religions support and encourage organ donation as an act of “Life Saving”.
Being an organ donor can be one of the greatest gifts that anyone can ever give in their lifetime. What many people don’t realize is that you have to register as an organ donor first. Organ donor decals on care cards are no longer valid and writing it in your will can be time sensitive. You can find detailed information and register online at the BC Transplant society website. Paper forms are also available at ICBC or Autoplan offices and Service BC offices. There are no age limits to being a donor but parents have to sign for children under 19 years of age. Due to Covid restrictions, it is a great time to go online and register to give the ultimate gift that ONLY you can give…the gift of life. God bless you all, stay safe and best wishes for 2021!
Connect Wealth is an independent financial planning firm that offers holistic advice to clients based on their current goals and future aspirations. We use well-established workflows and cutting edge technology to maximize planning efficiencies while simplifying the process for clients. Learn how you can maximize your financial opportunities at www.connectwealth.ca
De-Bunking Your Budgeting Barriers. If you don’t have a million dollars in your account right now, it is likely that you hate budgeting. It’s even more likely that you’re annoyed, even enraged, the moment the topic arises. It’s an interesting phenomenon, we all want to be financially successful, yet this first step is often the […]
The income sprinkling rules outlined in July 2017 held strong and the rules pertaining to passive investment income weren’t as harsh as predicted. Specifically, Budget 2018 has implemented two simple measures as it pertains to passive investment income:
Budget 2018 proposed to provide for an alternative reduction to the small business tax rate where a Canadian Controlled Private Corporation (CCPC) and its associated corporations have investment income in the year exceeding $50,000. The amount of the reduction is $5 for every $1 of investment income exceeding $50,000. In effect, the small business tax rate reduction disappears if passive income in a related business exceeds $150,000 in a fiscal year.
Currently, private corporations are entitled to claim a tax refund equal to $38.33 for every $100 of taxable dividend Where the corporation has a combination of regular business income (taxed at the regular business rate which does not include a refundable tax element) and investment income (taxed at the corporate investment rate which includes a refundable tax component), planning was commonly implemented to have the business income distributed by way of eligible dividend (taxed at a lower rate) while still being able to claim the tax refund.Budget 2018 proposes to modify the refundable tax regime to eliminate this planning and ensure that, in general, the private corporation is entitled to a dividend refund only when non-eligible dividends are paid.
There are ways to reduce the impact the business tax changes outlined within Budget 2018 through other financial strategies. These strategies may include Individual Pension Plans, Cash Value Insurance, as well as the strategic use of prescribed loans. We highly recommend contacting your financial advisor to determine which of these strategies will best suit your financial situation.
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If you have any questions on this taxes, or the different kind of impact it could have on you, please, do not hesitate to contact us!
Connect Wealth is an independent financial planning firm that offers holistic advice to clients based on their current goals and future aspirations. We use well-established workflows and cutting edge technology to maximize financial efficiencies while simplifying the process for clients. Learn how you can maximize your financial opportunities at connectwealthp.wpengine.com
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