Friday 2 May 2014

Designate Beneficiaries

As I have mentioned before, I love Gail Vaz-Oxlade, her shows, her books, just HER. For Christmas, my brother got me her newest book: Money Rules: Rule Your Money or Your Money Will Rule You. I don't like the set up as much as Debt-Free Forever, which is an amazing resource that I still refer to when it comes to my finances. Money Rules is set up as short tips. The most recent one I read was so interesting that I felt like I should share it:

Designate Beneficiaries on Everything!
This helps with tax costs (and probate fees) when assets get passed to your spouse or children after you die. Make sure that you list beneficiaries on your RRSPs, TSFAs, and Life Insurance. You should also back up these designations in your will. Note: Don't use your 'estate' as your beneficiary for RRSPs, TSFAs, or Life Insurance - the money will get distributed the same way but more taxes and fees will be charged. Also, obviously, set up a will and keep it current (marriage, divorce, children, property, etc may change your circumstances.) Need more convincing? Here is a quick reminder from Gail: You're Gonna Die

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