Logan Marchen CFP RRC - IG Wealth Management

The financial impacts of having a disability, both short and the long term, affect both the person with the disability and their caregivers. Despite this, many families don’t have the right financial plan in place.

We can help you make the most of an RDSP and other government programs, while putting a comprehensive financial plan in place that considers your full family picture.

Join us on Dec 3rd to learn more: ow.ly/scHx103bYx4

It's important to recognize the work involved during the application process of the Disability Tax Credit, however, limiting unreasonable fee's charged means more for the people who truly need it - the disabled applicant and their family. I think everyone can agree this should be the goal of all involved.

Proposed fee cap on disability tax credit consulting stalls once again Jamie Golombek: Getting CRA to allow DTC can be an ordeal, pushing some to turn to consultants who may charge upwards of 30% of tax refunds generated by a…

The shift to a low-carbon economy could create huge investment opportunities over the next decade. As a result, IG has created risk tailored portfolios built using the expertise from leading global asset managers allowing clients to participate in the future of our world.

IG Climate Action Portfolios You can help fight the effects of climate change while seeking to benefit from the global transition to a low-carbon economy.

An interesting read - Should we be relying on assistive technologies vs teaching necessary skills? What do you think?

Ontario reading test scores inflated by assistive technology, report says | CBC News Assistive technology for children with learning disabilities has inflated scores for Ontario standardized reading tests, according to a recent report by the International Dyslexia Association.

While scams tend to pick up around tax time, its important to be vigilant year round.

There is a number of red flags in this email I received this morning, but its important to remember that the CRA will not email you to notify you of a change to your tax assessment like this.

If the CRA emails you they may:
1. Notify you by email that a new message or document is available in your secure CRA portal.
2. Email you a link to a CRA webpage, but only if you ask them to DURING a telephone call.

In this case, it was clear that the email was not from the CRA (the sender was from a money transfer service, not a government organization) and the Income Tax Act section cited doesn't exist.

Protect yourself and your loved ones from financial scams - and if you are ever in doubt, contact a trusted professional first for an opinion before engaging with a potential scam.

With a near constant influx of news and changes means it is easy to lose sight of the big picture.

Here's a handy tool allowing you to compare the risk-reward premium of various asset classes over various timelines.

https://investmentsillustrated.com/clients/osc/bigpicture/

The Big Picture by OSC

Do you know how important it is to coordinate beneficiary designations?

Most people know that they can name a beneficiary to directly inherit the balance of certain registered accounts in Canada. Think naming your spouse on an RRSP or your child on a TFSA. But did you know a court could override your wishes?

It's true! Past court decisions have overturned beneficiary designations when it contradicts the way a will was written. More recently, a decision last year in the case of Calmusky v. Calmusky held that there is a presumption that a named beneficiary is holding assets in trust for the deceased's estate and the will would decide how the assets would be inherited.

Somewhat confusingly, last month that same court decided with Mak v. Mak, that the presumption would not apply when a beneficiary designation is made - allowing the beneficiary to inherit directly (as is most often intended).

What does this all mean? The important takeaway is that things aren't always as simple as they first appear. The best approach is too ensure there is no ambiguity in your intentions, and clearly document the purpose of a beneficiary designation. Additionally, coordinating your will (and making sure it is up-to-date) alongside the beneficiary designations of your accounts and Insurance policies will ensure there is no unintended consequences.

More than ever, having a clear, organized Estate plan for your finances can save you, and your loved ones, significant issues down the road.

How have recent changes affected Estate Planning in Ontario?

I am a BIG supporter of effective estate plans. There are few things with a bigger impact to the people you love and the causes you care about then coordinating your finances and putting your intentions down on paper.

Recently, Bill 245 received royal assent and it contained a handful of important impacts to planning in Ontario.

1. Virtual Signing: While it was introduced as a temporary measure during COVID-19, the ability to virtually sign for wills and powers of attorney documents is now a permanent option. You are now able to virtually meet with a lawyer to prepare your wishes officially, which helps dissolve some of the barriers in preparing an effective (and legally defensible) estate plan.

2. Marriage: Planning on getting married and already have a will? In the past, getting married automatically revoked a will (unless it was specific in considering the marriage). With Bill 245, this is no longer the case and wills continue to be valid, even after marriage. Very important however - this doesn't mean you should ignore your will. Marriage can have impacts in other areas of family law, entitlements and especially on tax planning - so make sure to spend some time reviewing this with a professional.

3. Death of a Spouse: On the other side, spouses who separate but have not yet officially divorced no longer have default property rights (with some conditions). Also, the surviving spouse entitlement has increased from $200,000 to $350,000 for cases where there is no will.

4. Errors and Invalidation: Sometimes, errors in how a official document is executed can invalidate a will or powers of attorney at exactly the wrong time - when it is needed! Thankfully, this bill has provided the courts with some authority to validate these documents as long as its determined to adequately set out the intention of the deceased.

Remember, keep your wills and powers of attorney up to date!
1. New children
2. New property
3. Marriage and Divorce
4. Family Issues
5. Material changes to your wishes, intentions and rules
. are all good times to ensure your wills and powers of attorney are in-line with what you want when you aren't around to provide the guidance yourself.

Mortgage changes incoming!

On June 1st - borrowers looking to purchase a home with insured (downpayments less than 20%) and uninsured (downpayments greater than 20%) mortgages will be tested at the mortgage contract rate plus 2% or 5.25%, whichever is greater.

This isn't completely new, currently the qualifying rate is 4.79% - meant to ensure that borrowers are able to continue to handle their mortgage payments should interest rates increase significantly from where they are today.
However, this recent increase is meant to have a "cooling" effect on the Canadian housing market, and Canadians looking to purchase will qualify for smaller loans and put pressure on sellers to reduce their asking prices.

A potential unintended consequence remains for current home owners - not only in reducing the current value of their home but in allowing them to make changes to their existing loans, as they'll be required to re-test. Imagine not qualifying for a home you've been paying for without issue for years!

Whether the intended effect becomes reality remains to be seen, however it certainly adds a layer of protection for home buyers from unmanageable increases in their monthly payments... at least with respect to their mortgage.

The IG Wealth Management Walk for Alzheimer’s is back!

This year has been especially difficult for people living with dementia, that’s why I’m walking with the Alzheimer Society for my community and to raise support and funds for those in need. Join me in May and we can walk virtually, together to make a difference

Please conduct your walk by following local health guidelines.

Proposed changes to the DTC
Yesterday, the Government released the 2021 federal budget and there is a key proposal important to people with Disabilities and their families.

The proposal aims to update the qualifications Canadians need to receive the Disability Tax Credit. If approved, it should help reduce delays and improve access to this program.

The Disability Tax Credit is part of a complex system of supports designed to assist Canadians living with disabilities. It plays a key role in helping absorb the additional costs of care and gain access to programs which can be used to provide immediate AND long-term support.

A infographic of this and other key recommendations of the budget included to this post.

Several measures were introduced during 2020 to help Canadians navigate the economic impacts of COVID-19. Often these measures included cash payments. This article provides an overview on what government assistance may be taxable to you or your loved ones. ow.ly/eXDr102CHMm

The Ontario Budget Updated to two hugely beneficial programs for families with children - especially children with disabilities.

Ontario COVID-19 Child Benefit
Ontario will provide a third round of payments through the Ontario COVID-19 Child Benefit. The payment will be doubled to $400 for each child aged 0 to grade 12, and $500 for children and youth 21 years old or younger with special needs.

If you received the "Support for Learners" benefit earlier this year, you will be automatically enrolled for this new benefit - if you missed that last payment, keep an eye on the Ontario.ca website which will updated with the new application details soon.

One-time increase to the CARE tax credit
The government is proposing a temporary 20% increase to the Childcare Access and Relief from Expenses (CARE) tax credit for 2021. The CARE tax credit provides support of up to 75% of eligible childcare expenses focusing on lower and moderate income families. The credit is based on a tax filer’s family income. The top-up will be delivered when families file their 2021 personal income tax returns.

Why was the market so volatile this week? Get caught up on all the latest events, economic releases and news in our weekly update. ow.ly/mSHe102APZU

I'm very proud to share that I have successfully achieved and have been granted the Certified Financial Planner (CFP) Professional designation.
This designation is the culmination of years of experience, study and examination and I am extremely honored (and relieved 😅) to finally be counted amongst its members.

Credential : Accredible : Certificates, Badges and Blockchain. CERTIFIED FINANCIAL PLANNER certification is the most widely recognized financial planning designation in Canada and throughout the world and is considered the standard for the financial planning profession. CFP® professionals have demonstrated the knowledge, skills, experience and ethics to provid...