Marc's situation
THE SITUATION
Marc works as a production manager in a large factory in the Montreal region. He is 56 years old, father of two teenage daughters and he plans to retire in the next 5 years. Marc is recovering from the death of his parents, both of whom died within the last year. His parents lived with him in the intergenerational house, which was now too big. These two girls plan to leave the family home in the coming months to move into an apartment. Marc was wondering a lot about the important decisions he will soon have to make:
- Do I sell the house to move down to a smaller one?
- How to adequately preserve and invest parental inheritance?
- How do the taxation rules work in an inheritance?
- Have I accumulated enough assets to retire soon?
- How much can I spend annually?
- Do my will and protection mandate need to be updated?
Faced with all his concerns, Marc contacted the office to obtain support in the management of his investments, to prepare the sale of his property and to be guided in his role as liquidators in his parents’ estate.
Objectives
- Liquidate his parents’ estate
- Sell your house and move
- Preserve the inheritance received
- Review your entire financial situation to prepare for retirement
Key figures and elements
- House: $800,000
- RRSP: $435,000
- TFSA: $86,000
- RESP: $27,000
- Inheritance to be received: $800,000
- Desired retirement date in 4 years
- Will and notarized protection mandate made in 2006
Our solutions and results
Marc was quickly met to better understand his situation and his priorities. Following an analysis of his parents’ inheritance situation, an action plan including recommendations was provided to him with the aim of respecting the wishes contained in the wills and fulfilling his role as liquidators. The large sum received as an inheritance has been deposited safely, giving him time to review his entire financial situation and plan the next important actions.
Marc put his house on the market and it sold in just a few weeks. He made the decision to rent a magnificent apartment so that he no longer had to maintain a house. He now prefers to concentrate on his approaching retirement and the numerous trips he would like to take. Following a complete financial analysis, Marc can now precisely set his retirement date, establish his different sources of income, plan his annual cost of living and begin to organize his future trips. A tax-advantaged investment portfolio was tailor-made to meet Marc’s expectations and his future income needs.
As his financial situation has changed significantly in recent months, recommendations were sent to him to update his will and his protection mandate. After having experienced the role of liquidator of an estate, he absolutely wants to make this task easier for his daughters.
