Toronto Estate Law Blog : Toronto Estate Lawyer : Hull & Hull Law Firm : Trust Mediation and Succession Planning : Serving Ontario, Ottawa, Mississauga, Hamilton

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I savoured every moment of the Christmas break.  How could I not when eating, sleeping, movie-watching and hanging out with family and friends occupied most of my time? So I couldn’t help but fantasize about how great it would be to live out my retirement as a lady of leisure.  

While it seems appealing to me now, the reality when the time comes may be something very different. For many the transition from the working world is not a smooth one – from both a financial and emotional standpoint. So how do we get ready?

From a financial perspective, putting your finances in order is necessary. The Wall Street Journal offers a simple list on how to do this.  An interesting article on the subject also speaks to being emotionally ready, and notes as follows:

·                    Think in terms of retiring to something, not retiring from something - "The Journal quotes Jonathan Guyton of Cornerstone Wealth Advisors in Minneapolis: If your definition of retirement is framed in terms of what you are leaving, you are setting yourself up for a much more difficult transition emotionally. Even if it’s just some relatively small thing that you are energized about and this is something you get to do right now … you generally do much better.”

·                    Phase into retirement – "first scaling back your hours and responsibilities, or maybe taking a part-time hobby job, so that you don’t suddenly have an endless amount of time to fill. This strategy has the added benefit of keeping some wage income, which will help stretch your nest egg."

Another idea the author cites is “practice retirement”, which entails staying on the job longer (either full-time or part-time), but instead of saving your income, use it to take vacations, fund a hobby or indulge in other ways that will help you figure out how you want to spend your retirement. 

Enjoy the weekend!

Natalia R. Angelini - Click here for more information on Natalia Angelini. 

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A recent article by Ted Rechtshafen in the Globe online edition encourages us to think about our retirement prospects, and plan for them.

The author notes that in 1921, the average life expectancy for a Canadian male was 58.8 years, while the mandatory retirement age was usually 65. At that time, financial planning for retirement was not an issue for most.

Good news: life expectancies have gone way up. Bad news: we now need to plan for a (hopefully) much longer retirement. Most Canadians should plan for, conservatively, a 30-year retirement!

Planning for retirement means considering the following basic questions:

-Do I need to think about ways to work beyond age 60-65?

-Am I saving enough for retirement?

-What is my world going to look like in 25 years?

The article contains links to tools such as a detailed “How long will I live” calculator. The calculator is eye-opening and instructive, and worth a visit. Other links include a “How much money will I have at the end” calculator, which estimates the value of your estate, assuming you live to a full life expectancy. Again, eye-opening.

Thanks for reading.

Paul E. Trudelle - Click here for more information on Paul Trudelle. 

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An article by Denise Appleby posted yesterday on the Globe and Mail website sets out the top three retirement savings tips for 55 to 64 year olds.

That group, the article advises, is more acutely aware of the need to save for retirement, and are at a critical time in their lives to assess how financially prepared they are for retirement.

The tips are:

1. Assess whether you are financially ready to retire.

This requires that you assess your assets and needs. The article has links to tools to help with these assessments.

2. Re-Assess your portfolio.

As retirement nears, many move their investments into more conservative vehicles.

3. Pay off high interest debts.

This would likely be good advice for any age group.

The article concludes by suggesting that individuals continue on their path towards having their retirement savings on track, and increase savings where possible. The author notes that saving more than required will help cover unexpected expenses.

From an estate and capacity planning point of view, we see on a daily basis the high cost of health care for the elderly, and the devastating effect that this can have on a retirement plan.

Thanks for reading.

Paul E. Trudelle - Click here for more information on Paul Trudelle. 

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A recent article in the Ontario Lawyers Gazette discusses succession planning for lawyers with respect to their practice. Lawyers often fail to plan for their retirement or death and often do not set up a formal succession plan for their practice to the determent of their families, clients, and colleagues.

The article states that 41% of practicing lawyers are over 50 years old and 34 % of all lawyers in Ontario are sole practitioners with an additional 29% working in firms of two to ten lawyers. However, often lawyers do not prepare well enough in advance for the winding down of their practice or what will happen to their practice in the event of their death or disability.

The article makes a number of helpful suggestions including:

• Advising sole practitioners to assign another licensed lawyer or paralegal with alternative signing authority for their trust account in the case of an emergency;
• Suggesting that practitioners name a licensed lawyer or paralegal as a limited trustee in their Will for the sole purpose of winding up a practice;
• Advising lawyers that a non-lawyer trustee or attorney pursuant to a Power of Attorney may not be able to deal with some of the issues with respect to winding down a practice;
• Advocating that lawyers communicate with their families, partners, and employees their succession plan; and
• Advising lawyers to plan well in advance (i.e. five years) to maximize their financial compensation.

The Law Society offers A Succession Planning Toolkit and a Guide to Closing Your Practice to assist lawyers. On May 20, 2009, the Law Society will be offering a teleseminar Succession Planning for your Practice  discussing these topics and more.

Thanks for Reading,

Diane Vieira

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In Thursday’s Globe and Mail, Margaret Wente wrote about “Geezers in Paradise”, and observed that tomorrow’s seniors will be able to enjoy “the most delightful old age of any generation the world has ever known”. Seniors are the fastest growing group in Canada, and by 2017, seniors will outnumber those under 15.

Ms. Wente sees a future where “mature lifestyle residences” replace schools, nannies are imported to care for your mom rather than for your kids, and the most popular diapers will be size XXL. Industries will sprout up to service this aging population, medicines will improve, and the political clout of this older group will ensure their comfort and entitlements.

This optimistic future is contrasted by reports earlier last week that one in three Canadians worry about outliving their savings (Toronto Star, July 16, 2007). The report found that many older Canadians did not foresee such a rosy retirement. 33% of respondents over 60 worked either part-time or full-time, and 19% indicated that their financial situation was worse or much worse than 5 years ago.

The vision of the baby boomer generation, on the cusp of becoming senior citizens, being the most affluent group ever is not universal. “There’s going to be a group of baby boomers for whom all of this image of affluence and consumption isn’t reality,” said professor Doug Owram of the University of British Columbia.

Rich or poor, the articles both highlight the importance of planning for our later years.

Thank you.

Paul Trudelle