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ESTATE ANALYSIS
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Your estate is made up of "pro-forma" net worth (assets minus liabilities at
time of death before taxes), government death benefits, life insurance, and
liability insurance. You then must pay any expenses associated with your death
(e.g. burial, charitable donations, etc.) and any taxes associated with the
deemed disposition of your assets. The result is your Total Net Estate, which
will be available to your heirs.
The following graph illustrates how your estate will be affected over time.
Generally, the taxes and expenses you must pay on death increase, in many cases
dramatically, as you build net worth over time. This is particularly true if
your net worth contains a significant amount of assets subject to deferred
taxes.
The following graph illustrates your estimated estate shrinkage (in dollars)
over time.
The next graph illustrates the estimated estate shrinkage amounts shown above as
a percentage of net worth.
We have analyzed your plan from 1999 to 2057 to estimate the amount of estate
shrinkage you are likely to encounter on death in each of these years. The
average estate shrinkage you will face is $324,359, with the largest estate
shrinkage ($659,269) occurring in 2036.
Note that in some cases you may not experience any shrinkage in your estate
(both as a dollar amount and as a percentage of your pro-forma net worth). This
situation will arise if your insurance benefits exceed the additional taxes and
expenses payable on death in a given year.
The following report illustrates how your estate will be affected over time in
the event of your death.
|
Lifestyle |
1999 |
2013 |
2027 |
2041 |
2056 |
Split-Level Bungalow |
124,848 |
164,734 |
217,363 |
286,806 |
386,004 |
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Subtotal |
124,848 |
164,734 |
217,363
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286,806 |
386,004
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Investments |
| Cottage Fund |
3849 |
35614 |
0 |
0 |
0 |
| Our Retirement Fund |
1601 |
3968 |
0 |
0 |
0 |
| Retirement Funds |
16,547 |
406,331 |
466,272 |
0 |
0 |
| ABC Company Stocks |
17,077 |
42,337 |
104,960 |
260,211 |
688,323 |
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Subtotal |
39,074 |
488,250 |
571,232 |
260,211 |
688,323 |
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Registered |
| Mutual Fund |
20,266 |
150,389 |
461,375 |
685,736 |
0 |
| Mutual Funds |
32,065 |
200,187 |
679,781 |
1,060,292 |
0 |
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Subtotal |
52,331 |
350,575 |
1,141,156 |
1,746,028 |
0 |
| Current Surplus/Deficit |
(46,136) |
10,462 |
0 |
(10) |
(256,269) |
| Pro-Performa Net Worth |
170,133 |
1,014,022 |
1,929,752 |
2,293,036 |
818,057 |
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Death Benefits |
| CPP/QPP Survivor Benefits |
5,000 |
7,563 |
11,440 |
17,303 |
26,958 |
| Other Benefits |
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(13,479) |
| Estate Before Taxes & Expenses |
175,113 |
1,021,585 |
1,941,191 |
2,310,339 |
831,537 |
| Additional Income Taxes |
(20,297) |
(141,994) |
(447,178) |
(644,280) |
(761,263) |
| Net Estate |
154,816 |
879,591 |
1,494,013 |
1,666,059 |
761,263 |
| Final Estate |
154,816 |
879,591 |
1,494,013 |
1,666,059 |
761,263 |
| Estate Shrinkage ($) |
15,297 |
134,431 |
435,738 |
626,977 |
56,795 |
| Estate Shrinkage (%) |
9% |
13% |
23% |
27% |
7% |
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