Author: kiara

Learn the signs to look out for in email phishing scams so you can safeguard your confidential financial and personal information.

Phishing emails are a regular tactic used by cyber criminals to steal your personal information, such as your online banking login credentials.

Some red flags are easy to spot and will quickly alert you to the fact that you are the victim of a phishing attempt. In other cases, phishing is harder to discern.

As cyber criminals become more and more creative in their attempts to steal users’ personal information via email, awareness and understanding what to watch out for become the best defense against cybercriminals and their schemes.

But first, what is Email Phishing?

In this form of online scam, cyber criminals impersonate someone you know or a legitimate organization, like the CRA or your banking institution.

Typically, phishing emails contain an urgent call to action and link that, once clicked, will direct you to a website to confirm your personal data, account information, etc. These links which lead to fake websites are designed to steal your personal information or infect your device with malware.

Phishing emails can also contain unexpected or suspicious email attachments, that when downloaded, may cause your computer to become infected with a virus, which compromises the security of your computer.

How do I know an email is a phishing scam?

Many phishing email attempts end up in your spam folder, but spam filters aren’t enough to keep out phishing scams from your inbox.

Some telltale signs of email phishing include:

• Unknown sender or email recipients that you don’t recognize
• Misspelled or incorrect sender name and/or email address
• Mismatched sender name and email address (e.g. – The email comes from “Microsoft” but the sender’s email address uses a Google domain like example@gmail.com)
• Generalized or missing salutation (e.g. – “Dear Canadian Taxpayer”)
• Typos and other spelling and grammatical errors in the subject and body of the email
• The tone is not consistent with that of the sender
• The language used is urgent or menacing and there is an impending deadline mentioned (e.g. – “this attachment will expire in 24 hours,” “you have an unpaid invoice,” you need to “verify” personal information”)
• Strange, unusual, or unsolicited request or the content just doesn’t make sense and asserts something ridiculous
• You did not subscribe or consent to receiving the email communication from the sender
• Odd layout and bad quality images
• The link in the email doesn’t match the URL when you hover on it with your mouse
• The included attachment has a strange name or file extension
• The email went directly to your junk or spam folder

It’s important to note that the above isn’t an exhaustive list of all the warning signs of phishing emails. Phishing emails can be so sophisticated that only contain one or a few signs listed above.

Be proactive, not reactive!

Cybercriminals are always looking to innovative and more sophisticated ways of impersonation and duping unsuspecting victims to give up their financial information.

When you’re evaluating whether an email is a phishing attempt, some questions you can ask yourself include:

• Do I recognize the sender’s name and “From” email address?
• Does the email’s subject line or body include typos or grammar mistakes?
• Does the sender’s email address match the name in the “From” field?
• Do I recognize the recipients included on this email?
• Does the email have a call-to-action such as clicking a link or downloading an attachment?
• Is the email asking me for personal information, such as my SIN number or bank account login?
• Did I sign up to receive this communication from this sender?
• Is the layout or image quality odd?

As a general rule of thumb, be suspicious of all links and attachments and think first before clicking.

If you ever get a suspicious email from someone claiming to be a reputable company, friend, or acquaintance, it’s always best to contact the organization or individual in question immediately to confirm whether the email is legitimate before proceeding.

One thing to keep in mind is that just because you receive a phishing email doesn’t mean your personal information has been compromised. Email phishing scams are only successful when their targets click on malicious links or download harmful attachments.

Between tuition and other-related expenses, post-secondary education, especially during these times of high inflation, can be a significant financial burden on families with multiple children. What are some smart strategies to manage these costs? Our experts suggest some options.

The rising expense of post-secondary education, at a time when inflation is skyrocketing and other areas of life are becoming more expensive, may prompt you to worry about how you will be able to provide this opportunity for your children. The cost of tuition, coupled with other university-related expenses like textbooks, electronics, and living accommodations can be a significant financial burden on families, especially those with multiple children.

You may deem the costs of your child’s post-secondary education as necessary, but also consider them to be quite expensive. The good news is that you don’t have to foot the bill all at once and there are a few things you can do as parent to manage and ultimately reduce these expenses when you have several children. There are even a few things you can encourage your child to do as they pursue their university education in order to manage their school-related expenses.

1. Consider opening a family RESP plan.

Many families opt to open one RESP account per child but managing multiple accounts can be difficult. That’s why a family RESP is a great option for families with multiple children. While you may be investing in a single account, RESP contributions are tied to your child’s SIN, so your financial institution knows which child receives the contribution. In turn, investment earnings can be shared among your children. You also have the flexibility to allocate funds to other qualifying beneficiaries if one beneficiary does not pursue higher education or if education costs differ among them.

2. Take advantage of the Canada Education Savings Grant (CESG).

The CESG program, which is available to everyone, provides an excellent incentive for families to begin saving for their child’s education as soon as they can. This RESP grant matches 20% of the first $2,500 contributed each year to a RESP of an eligible child under 18 up to a yearly maximum of $500 and a lifetime maximum of $7,200. If you contribute annually from when your child is born, the grant will max out in 14 years. Quebec residents can receive an added incentive in the form of an additional 10% grant called the Quebec Education Savings Incentive (QESI). While many believe the age-old adage “There’s no such thing as free money,” the Canadian government is essentially giving you “free money” to put towards your child’s education. You can find out more about the CESG grant here and the QESI here.

3. Co-sign your child’s student line of credit application.

A student line of credit is a flexible financing option for students that helps them pay for post-secondary education expenses such as tuition or books and can also be used to fund day-to-day expenses such as food and transportation. Much like a credit card, the money borrowed must be repaid with interest. However, a student line of credit tends to have more favorable interest rates than your standard credit card and the interest charged is only on the money borrowed. Oftentimes, a financial institution will require a co-signer who will be responsible for the debt should the student be unable to pay. This is where you as the parent can step in. Co-signing your child’s student line of credit may be a good way to help them establish credit, for instance. You can find more information about student lines of credit on the Government of Canada website here.

4. Explore additional ways to pay for your child’s post-secondary education.

Savings plans like a RESP may not be enough to cover the costs of your child’s university education so you may consider financial assistance. Financial assistance can be anything from the CESG mentioned above to student loans to scholarships, grants, and bursaries, which provide tuition assistance that does not need to be repaid. One misconception is that you need to be low income to benefit from any of these options, but that is simply not the case. Scholarships, for example, can reward academic achievement regardless of income level.

5. Give your children a primer on good money habits.

Along with the above strategies, financial education and being money-savvy goes a long way in helping to manage any large expenses like post-secondary education. You may have instilled good money habits in your children as they grew up, but it’s never a bad idea to go over the bases as a reminder. While tuition costs tend to be foreseeable, many other university-related expenses are variable costs and there are usually ways to reduce those costs. For example, for food, you may encourage your child to take a college meal plan or cook at home rather than order out as ordering out can be quite expensive. Of course, there are many other ways to reduce costs and save money that you should educate your children about, such as keeping an eye out for student discounts, avoiding out-of-network ATMs, and using a credit card in the most efficient manner. These money habits can add up over time and can make a noticeable difference.

Advisors like us help clients all the time work towards their financial goals and over the years, we’ve helped countless families with choosing the right investments to build savings for their children’s education. For more information on how we can help, email us at inforequest@rothenbergwstg.wpenginepowered.com.

With inflation at a nearly 40-year high, you might be worried about what it means for you retirement. In this article, we go over some things you can expect, whether you’re in the process of planning for retirement or are already retired.

You may have noticed a spike in certain expenses recently, such as your groceries, rent and gas bills and you may be wondering why this is happening. The reason is inflation. Inflation occurs when there is a broad increase in the prices of goods and services. But inflation doesn’t only impact your spending habits. It also affects your ability to save for big life goals like retirement and enjoy your golden years as you should.

I’m saving for retirement. How does inflation impact me?

As your expenses go up with inflation, your financial priorities will most likely shift, and saving for retirement may move down the list. You may even find it difficult to put aside funds on a regular basis since you first must pay for things like food and gas. In extreme situations, you might even have to dip into your savings to compensate for overspending. When your income remains the same, but the cost of living keeps going up this is certainly a possibility.

Your first instinct may be to reduce or cut back entirely on otherwise regular contributions to your retirement accounts until things subside and prices return to something-like-normal. However, you should avoid giving in to this urge. Even if you’re only considering reducing or ceasing your contributions for a short period of time, this can have drastic effects on your nest egg.

Compound interest earned on the funds you save and invest for your retirement on a consistent basis will help your savings increase more quickly over time. Imagine the size of a snowball increasing as it tumbles down a slope and gains momentum. Compound interest works in a similar way.

By continuing to make regular contributions to your retirement accounts, you ensure that you enjoy the full power of compound interest. On the other hand, when you reduce or stop your contributions to your retirement savings, this could result in thousands of dollars less in retirement savings over the long term.

Consider the following example. Let’s say Bob starts with $2,000 in his RRSP and invests an additional $2,000 per year towards his retirement for the next 30 years. We’ll assume a 7 percent return every year to keep things simple. Bob’s RRSP would be worth $202,146. Now if Bob decides to stop contributing to his RRSP in year six and seven due to inflation, he will end up with $181,146 in total savings, which creates a $21,000 difference by the end of year 30.

While we do not recommend reducing your spending on necessities such as food, if you fear you may have to lower the amount or frequency of your contributions, you can free up some funds by eliminating non-essential expenses, such as dining out or subscription services.

Budget cutbacks can only go so far in any event, so you should definitely have a conversation about this matter with your wealth management advisor. Your advisor will be able to guide you through the process of adjusting your retirement planning strategy and investment portfolio in a way that has the least amount of impact on the quality of your life at the current moment and the best possible outcome for your retirement.

I’m already retired. What does inflation mean for me?

With so much time and effort involved in planning and saving for your retirement, as a retiree, you are certainly wondering if you’ve saved enough, how long your money will last and if you will need to adjust some of your highly anticipated plans as inflation rises. The answer depends on a few factors. Among them, your cash flow, your expenses and how willing you are to compromise on things if need be.

Since you are no longer working as a retiree, your income tends to be more predictable, and your expenses tend to become more stable as well. Your personal savings and your investment portfolio are most likely your main source of cash flow during this period in your life. You may also rely on government pensions, such as CPP, Old Age Security (OAS), and GIS for retirement income.

While your personal savings and ongoing investments will likely be the most affected by rising inflation, as your purchasing power decreases and the markets respond, the federal retirement benefits you’re receiving will see less of a negative impact.

Government-funded programs like CPP, OAS and GIS are indexed for inflation, which means that they are adjusted to keep pace with inflation, although using different formulas. So, you will likely receive an increase in the payout amounts as the government tries to account for the rapidly rising cost of living.

However, it remains important to note that if the rate of inflation outpaces the adjustment rate, it will not entirely offset inflation. So, you may find, after you spend on your basic expenses, like rent, utilities and groceries, that you have less left over for the really exciting activities on your bucket list. It then becomes a balancing act between carrying on as planned with your retirement and making concessions, especially when your expenses exceed your income. This can be the case if you have goals or hobbies you’re determined to hang on to.

If you’re healthy, travelling is probably one of the top items on your retirement bucket list. You’ve most likely saved up for this lofty goal as it can be costly. Unfortunately, when inflation is up, it can be more expensive to travel than you anticipated.

But there are also some silver linings to inflation, such as interest rates rising. You’ll find that rates for annuities like GICs, as an example, should go up during periods of inflation.

Another advantage is in real estate. For those who still own their home and are looking for the best time to sell it, during periods of inflation, real estate prices tend to go up. What this means is that it might actually be the best time to sell your home when inflation rising.

Of course, like any situation, there are both positives and negatives and these must be weighed against each other. If you are to draw any conclusions, the bottom line is this: If your expenses exceed your income, which is entirely possible, as the cost of living rises with inflation, you may be forced to choose between delaying your retirement or moving forward as planned but making some concessions.

If you are just transitioning into retirement, you may decide to work longer to generate more income to do the things you initially planned and cope with rising expenses. If you are in retirement and do not plan on returning to the workforce, you may opt for lower-cost alternatives to everyday products to offset inflation costs.

It’s understandable to be concerned about how inflation will affect your freedom and flexibility during retirement. The strategies to mitigate the effects of inflation on your retirement savings and plans will differ from person-to-person depending on your unique situation. It’s always best to touch base with your wealth management advisor if you feel even slightly concerned about how inflation will impact your retirement.

While this article been carefully checked, we cannot and do not guarantee that the information provided is correct, accurate or current. Please speak to your Rothenberg Wealth Management advisor for advice based on your unique circumstances. 

Are you one of the millions of Canadians set to receive a tax refund this year? Here are some ideas of what to do with those funds.

The good news is that you’ve prepared your tax return and realize that you’re entitled to a refund. This certainly beats the alternative of owing the government money. If you do find yourself in the position of receiving a tax refund, here are six things to consider doing with that money.

1. Splurge

In general, the suggestion to treat yourself comes last on the list of things to do with your refund, if it shows up on the list at all. But if your refund is relatively small, consider treating yourself to something you’ve been eyeing or doing something special, such as going out for a nice meal. Even if you receive a larger return, it is acceptable to take a percentage of it and use it to enjoy yourself.

2. Contribute to your RRSP                                                                                                                          

You might consider a contribution to your RRSP to build up your retirement nest egg. If you have an RRSP, you may have carryover contributions from previous years when you didn’t fully fund your account up to your yearly limit. Taking all or part of your refund and contributing it to your RRSP can help use up some or all your available contribution room and get you one step closer to your retirement savings goals.

You may also receive a potential tax break for the 2022-2023 year since these contributions are made on a pre-tax basis and the funds are only taxed upon withdrawal.

If appropriate for your situation, you might also consider contributing to a spousal RRSP account. This is an income-splitting strategy for couples that can help decrease their collective tax burden.

3. Contribute to your TFSA

Placing your tax refund money into your TFSA to save for a major purchase can be another option to consider.

Contributions to a TFSA do not provide an upfront tax deduction. However, your refund can be placed in a range of income-generating investments, which will grow tax-free inside your account. The advantage is that you can save towards a big goal, such as your first home or a long vacation, and any funds withdrawn are not subject to taxes.

This can offer an advantage in your tax planning in retirement. It is also a way to diversify the taxation of your retirement income sources if you also have an RRSP and have already maxed out your available contribution room.

4. Invest via a taxable account

While the tax advantages of an RRSP or a TFSA are very tempting, investing in a taxable brokerage account also has its advantages. Capital gains are taxed at a favorable rate, so it can make sense to hold investments that are likely to generate sizable capital gains in these accounts while holding income generating investments in an RRSP or TFSA.

Dividends collected on stocks in a taxable brokerage account are also taxed preferentially as opposed to some other income sources. This is because the company has already paid tax on these dividends, and the government does not tax this income again.

Another thing to keep in mind is that funds in a taxable account like an RRSP can be more readily accessible over time than funds held in a tax-sheltered account since they are not subject to the same rules.

5. Pay down debt

If you have outstanding debt such as high interest credit card payments, a personal loan or a mortgage you can consider putting some or all your tax refund towards reducing this debt. You can eliminate or at least reduce the overall amount of the payments on this debt, saving the compounded interest cost over time.

In the case of a mortgage, if the refund is sizable, you could consider making a substantial payment to reduce or eliminate this debt entirely.

There is currently a suspension on the accumulation of interest on student loan debt by the Government of Canada until March 31, 2023. This can be an excellent time to pay off some or all of this debt with your tax refund. Besides reducing your debt, making a payment now can help eliminate additional interest once things return to normal and this suspension is removed.

6. Contribute to an emergency fund

Your refund money can be used to start or add to an existing emergency fund. This is money that is generally held in a liquid, interest-bearing account to be available for an emergency. This might be the loss of a job or a large, unexpected repair that is needed on your home or car.

A rule of thumb says that you should have at least six months worth of your required and necessary expenses in this fund. This should include money to cover payments such as rent or a mortgage, food, a car payment and other expenses that are essential to maintain your regular standard of living. This could also include extras like entertainment, dining out or other discretionary spending although it remains important to prioritize your necessities and those of your dependents.

Review your withholding tax

While not something you would do with the funds from a tax refund, this is a good time to review your withholding tax for the current year to see if it best reflects your situation. Has your income level changed? If so, are you having enough withheld?

Withholding tax refers to the amount of income tax your employer withholds from your paycheck and typically does not consider various deductions normally claimed, such as RRSP contributions, which reduce your taxes payable. If you find yourself getting a sizable refund each year you might consider reducing your withholding tax, so you receive more money with each paycheck.

The takeaway… Prioritize what’s important to you

Getting a hefty refund can be a form of forced saving, but you are not receiving any interest on this money. You could be putting it to better use during the year by investing it. However, it really depends on your current situation and your needs.

Give us a call at 514-934-0586 (Montreal) or 403-228-2378 (Calgary) to discuss the best way to put your tax refund to use and to do a review of your withholding tax to ensure that it is optimal for your situation.

While this article been carefully checked, we cannot and do not guarantee that the information provided is correct, accurate or current. Please speak to your Rothenberg Wealth Management advisor for advice based on your unique circumstances.

Using home equity as retirement income can be an interesting option for retiring Canadian baby boomers who have benefited from strong real estate markets over the past two decades.

The options for funding one’s retirement are varied and wide-ranging. The most typical sources of income in retirement include pensions and financial savings, which typically take the form of Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs) and non-registered savings accounts.

Another option that retirees can consider is their home equity. One method for accessing home equity is through a reverse mortgage. A reverse mortgage is a loan that allows you to get money from your home equity without having to give up your home. Depending on several factors, including you and your spouse’s age (both must be at least 55 years old) and the appraised value of your residence, you can borrow up to 55% of the current value of your home. However, reverse mortgages are usually issued for much less than this.

A reverse mortgage can be set up to make periodic payments to a homeowner, or it can be taken as a lump sum. In either case, there are no payments required until the homeowner moves out of the home, passes away or sells it.

There are several advantages and disadvantages to using a reverse mortgage. 

The advantages include:

1. Your net worth may be tied up in the value of your home, especially if its value has grown over the years. A reverse mortgage allows you to access your home equity without having to sell your home. Furthermore, you continue to own your home, and you will never be asked to move or sell your home. Even if the value of the home declines below the balance owing on the reverse mortgage, you can continue to live in the residence for the rest of your life.
2. You can access your home equity without the month-to-month payments you would find on a typical loan, like a Home Equity Line of Credit (HELOC) or a refinance. In fact, no payments are required at all, at least not until you move or sell your home, which is entirely your decision. Payments are thus voluntary, and, as a result, it is impossible to default on the loan.
3. You can choose how to receive your money, whether as a lump sum or at regular intervals. There are no conditions or requirements as to how you spend the money you receive. You can use a reverse mortgage for anything from paying off an existing mortgage to renovating your home or helping your family.
4. Since this source of income is technically a loan and not income, it is available on a tax-free basis. Furthermore, any payments received from a reverse mortgage are not considered when determining eligibility for Old Age Security (OAS), Guaranteed Income Supplement benefits (GIS), or Canadian Pension Plan (CPP) nor do they affect any benefits you may be receiving.
5. Unlike some other types of loans, income and credit scores are not considered for eligibility for a reverse mortgage. However, because of mortgage rules and regulations in Canada, you may be required to submit them.
6. You can never owe more than what your home is worth. If your home falls in value, the reverse mortgage lender takes the loss.

The other side of the coin… The disadvantages include:

1. One of the most significant disadvantages of reverse mortgages is the noticeably higher interest rates. In effect, the interest rates charged on reverse mortgages tend to be materially higher than the rates charged on similar types of lending products such as a traditional mortgage or a HELOC. For example, Canada’s largest reverse mortgage provider currently charges 5.49% on reverse mortgages with a 5-year term. Meanwhile, major Canadian banks are offering regular mortgages for 2.65% (as of April 2020). The percentage points difference will significantly reduce a homeowner’s equity, particularly given the effects of compounding when no payments are made before selling (like almost all mortgages in Canada, it compounds semi-annually). For this reason, it’s important to compare solutions.
2. The equity you hold on your home may go down as you accumulate interest on your loan. As a rule of thumb: The higher the interest, the more interest you’ll end up paying back to your reverse mortgage provider, and the less equity you’ll have at the end once you reimburse the amount. In a rising interest rate environment, it’s not uncommon that the interest can accumulate and take up more home equity to a point where you may have no money left.
3. If you have an existing mortgage or HELOC, the funds you receive from a reverse mortgage must first be used to pay off existing loans secured by your home. Consequently, you can’t just go and spend the money you receive however you want.
4. Staying in your home may become unfeasible at some point in retirement if things like climbing the stairs, house maintenance, snow removal and lawn care become too much of a burden. In this case, you may decide to move and sell your house. The issue here is that when you do so, you must repay the reverse mortgage in full. However, you may not have sufficient funds to do so. In this case, planning is everything.
5. If a reverse mortgage has significantly reduced the equity of your home, there may be little funding left to cover long-term care later in life.
6. A reverse mortgage reduces the size of your estate. In turn, the inheritance that you would leave for your family is smaller. It’s important to consider how a reverse mortgage can impact your legacy.

Some retirees may want to remain in their home for personal or sentimental reasons. If no other financial options allow for this preference, a reverse mortgage may be the only option. However, as with any financial product, there are many things to consider; there is no one-size-fits-all solution. Reverse mortgages certainly fulfill a need in the market, but they are not well-suited for all retirees. It’s essential to get a professional opinion on your personal situation.

Please note we do not offer reverse mortgages. However, we suggest you give us a call at (514) 934-0586 (Montreal) or (403) 228-0949 to discuss comparable options. A Rothenberg Wealth Management advisor will evaluate your unique situation and see if other options are available that might be better suited to your needs.

When people move out of their home, it is usually after they have tried remaining at home – at times with assisted living care – and have reached a point where this solution no longer works.

In some cases, home care lasts only for a limited time due to changes in the senior’s health condition and increasing additional needs. In other cases, the reason for the change may not be physical but rather due to social isolation, apathy, or loneliness.

Where do I start? Who can help?

When looking for the most suitable Residence for one’s next life chapter, there are many aspects to consider. Facility, comfort, activities, proximity to family, level of care, budget, demographics and so much more. Often, first-timers feel overwhelmed and uncertain as to which facility to visit, what to look out for, what questions to ask, or have nothing to compare with.

Often the local municipality will offer resources for seniors and housing options, though usually they mostly cover long term care facilities (regulated by the government). If you are looking for this information, please consult:

Ottawa: Community Information Centre Ottawa – Tel  613-761-9076

Kelona: Aging at Home, Moving to another care level. Another resource in Kelowna is the not-for-profit organization Seniors Outreach – Tel 250-861-6180

Montreal: Community Information Centre Montreal

Calgary: Community and Social Services Help Line

The search may become a little more complex when you are looking for a retirement home also for independent or semi-independent seniors. It may be helpful to consider the services of specialized agencies which are available in many parts of Canada. Placement agencies are compensated by all private Residences, so their service comes at no cost to you and they operate in a similar manner across the country.

Services such as Seniors Choice Montreal headed by Steve Besner, or Accès Résidences under Fabienne Coullerez’s guidance, provide an efficient way to search for the best Residence. Their services are free as they get compensated by the Residences.

Similar services are available in Ottawa and Kelowna as well. For example: Comfort Life – Servicing large sections of Canada

Comfort Life Ottawa

Comfort Life Kelowna

Or Tea & Toast, who work with 90 % of residences in the Ottawa area but offer services across Ontario.

How can such an agency control the quality of service at a Residence?

Some agencies have a dedicated evaluator who visits each Residence and assesses the quality of services, care, and facilities offered to seniors. The teams at both agencies mentioned above visit the facilities they recommend on a regular basis and follow up with each client.

Are placement agencies objective when advising seniors on the best Residence? Placement agencies are compensated by all private Residences, so they do not have an interest in suggesting one over another. Maintaining trust in the relationship with clients and their families is crucial to placement agencies’ reputation and referral business.

Types of Residences available to today’s seniors

While Assisted Living Residences and Nursing Homes have long been a solution for seniors who require care, in the past few years Autonomous Residences have increasingly been built and renovated to accommodate independent senior customers.

Autonomous Residences

Autonomous Residences service seniors who are able to function autonomously and manage all activities of daily living (ADL). Often times these seniors have their own car and may still have the ability to travel.

So why would these autonomous seniors consider a move to a Residence?

• Residences offer peace of mind for the senior and their family – Though they are in relatively good health, there is always the fear of an accident, a fall, blood pressure issues, etc. When in a Residence, a nurse or care worker arrives within a couple of minutes of a push of a button or pull of a cord on the emergency call system.
• An array of fun and interesting activities – These activities are designed to stimulate mind, body and spirit and are invaluable in maintaining a zest for life. Drama, art, music, field trips, athletics, lectures, movies, and bingo are some examples.
• The responsibility of maintaining a home is lifted – Shoveling snow, arranging home repairs, mowing the lawn, painting and renovating… these burdens are left behind in favour of living in a building with on-call maintenance experts.
• A Residence becomes a cure for loneliness and solitude – Residences offer all the privacy and personal space a senior may want while at the same time providing the option of joining a multitude of common areas and activities with other seniors or chatting with neighbours and friends at will.
• Cooking and cleaning dishes is optional – Residences offer the option of eating in the dining room for 1, 2 or 3 meals per day. Those who desire to continue preparing meals are welcome to do so.
• Residences provide a great venue for family visits and get–togethers – Whether it’s a one-on-one visit in the Residence library or a family birthday party in a private dining room, Residences provide an environment for seniors and their families to enjoy quality time together.

Assisted Living Residences

Assisted Living Residences provide various levels of care for seniors who need help with ADLs.

If a senior requires help with only one or two daily activities, they can often live in an Autonomous Residence or on an autonomous floor in a Residence and can purchase extra help from the Residence or via external private companies (home care).

When a senior needs help with many ADLs, it is time to move to the Assisted Living floor or, if not available in the current Residence, to move to an Assisted Living Residence where their needs can be met. They will still benefit from all the advantages of Residence living along with the extra help to make their days stress-free and comfortable.

Nursing and Memory Care Residences

These Residences provide full care until end of life. Nurses and care workers are available 24/7 and all ADLs are managed by the Residence. In a memory care situation such as Alzheimer’s or any form of dementia, these Residences (or special floors within Residences) have secure entrances and exits so the senior cannot wander off the floor or out of the building.

At this stage, many of the otherwise available activities are no longer appropriate. However, other adapted activities are offered instead, designed with the high-care or memory-challenged senior in mind.

Continuum of Care vs Specialized Residences

Some Residences cater to one specific type of senior (e.g. only equipped for an autonomous lifestyle or specialized in memory care). Other Residences offer a continuum of care whereby the senior can enter as a fully autonomous resident and move to different areas within the Residence as their needs change.

Many seniors/families prefer such continuum of care Residences since they allow them to remain in the same building and avoid a complete change of environment when care needs increase.

Helpful checklist while visiting a Residence

To choose between multiple Residences offering a similar level of care in the same geographic area, one should visit each Residence and make note of certain factors and criteria:

• Analyse the environment and the interactions between the staff and the residents.
• Do you like the location and outside appearance? As you tour the Residence, does it feel inviting and homelike?
• Ask the residents about how they like the community and staff.
• Do the residents seem to be appropriate housemates for you or your loved one?
• Unit accommodation – is heating/air conditioning individually controlled?
• What type of activities and amenities are offered?
• What level of healthcare services are offered (nurse, doctor visits, dietary services, physiotherapy, grooming, pharmacy, etc.)?
• Are visits welcomed at any time? Are grandchildren allowed to spend the night? Is there a charge?
• Does the Residence train staff on elder abuse and neglect? Is there a policy for reporting suspected abuse? Is there a camera surveillance system in place?
• Does the Residence have a designated area for residents with cognitive impairments such as Alzheimer’s disease? If so, is it secured?
• Does the Residence allow hospice care to come in and care for residents?
• What are the most common reasons a resident may be asked to move out of the community?

The role of a senior living consultant

Experienced senior living consultants work with various sizes of Residences, from autonomous to high care. Consultants can provide families with behind-the-scenes knowledge that is otherwise not accessible.

Seniors Choice Montreal can often negotiate a better price for their clients due to their long-standing relationship with Residences. The agency uses its valued connections with Residences, hospitals, social workers and nurses to provide personalized service and help with the necessary paperwork and government assistance applications.

Their team continues to support the family even after the senior has moved in. Sometimes occasional check-ins are enough; other times, such as when the senior’s family lives out of town, they depend on Seniors Choice Montreal to visit their loved one and provide regular updates.

Accès Résidences’ team of consultants visits the facilities it recommends and ensures they remain consistent over time. Their consultants are familiar with the ins and outs of each Residence and can help clients determine which Residence offers the best personalized response to their needs. All their consultants are members of the Quebec Association of Consultant for Services to Seniors (ACSAQ) and abide by their code of ethics. They service a large spectrum of communities in multiple languages and are attuned to their cultural sensibilities.

Residence costs

The average monthly rent for a standard unit in a Residence for seniors in Quebec was valued at $1,788 in 2019. In the Montreal area, private Residences’ monthly costs range from approximately $2,000 up to $8,000. This wide discrepancy in cost results from various factors including location, facilities, care level, size of room or apartment, number of meals included, and optional parking.

Generally speaking, the amount of care needed is the largest single factor influencing the monthly cost.

Conclusion

Placement agencies conduct a free initial consultation and assessment of the senior’s needs and later accompany the senior and their family on multiple visits to appropriate Residences as they search for the perfect fit. The agencies’ extensive knowledge of the industry and long-standing relationship with Residences is often invaluable and enables deeper insights, access to non-published details, and better long-term follow-ups. All of the above is made available without additional cost to the family – a win-win option to consider.

Your savings, possessions and property form your estate. Estate planning allows you to decide in advance who receives what, and to establish a financial plan to minimize taxes upon your death. An important part of estate planning includes funeral and burial instructions and your wishes regarding medical interventions.

Estate planning is the best strategy to ensure your wishes are followed at the time of your death. Having an estate plan will streamline the process, possibly reduce legal costs, and ease the burden on your survivors.

In Canada there are no “estate taxes” – taxes owed on the entire value of an estate. However, your estate may be subject to probate and income taxes. Taxes and other expenses are paid out of your estate, reducing the amount available to pay to your heirs. All expenses must be paid prior to disbursing to the heirs.

Wills

A Will is a formal legal document detailing how you wish your assets and possessions to be distributed upon your death. It legally guarantees that your savings, individual items and property are given to people and organizations of your choosing. It also allows you to choose the person(s) who will care for your dependents and pets.

In preparing a Will you will decide who will act as executor of your estate. This can be one or more relatives or friends. Who you choose is important as he/she will be responsible for settling the estate and, once all expenses and taxes have been paid, distributing the balance of the estate to the beneficiaries in accordance with your wishes as outlined in the Will. It is sometimes wise to choose at least one younger person to act as executor of your estate to ensure that he/she will be alive when you pass away. Also, choose a person or people who live in Canada, because having a non-resident executor can create problems and additional tax burdens.

You can modify your Will at any time should circumstances change for you or for those mentioned in your will. A change in marital status, grown children, or death of a beneficiary or executor are good reasons to review and update your Will.

Dying without a Will leaves your possessions to be divided according to a pre-set formula according to province. Without a Will, your estate will be automatically transferred to your closest relatives, while friends, charities, and organizations will be excluded.

Having your Will prepared by a notary or lawyer is recommended. Once completed the document will be registered with the Chambre des Notaires and Barreau du Quebec or the law society of your province and becomes an official legal document. This ensures the document is indeed the last official Will and mistake-free and helps avoid delays and procedural costs – not to mention stress – that would be imposed on the executor(so) of your estate. It is important to provide details of your wishes when preparing your will. However, do not put in the specifics of your funeral or burial in the Will because in most cases, the Will is opened and read only after the funeral. Keep those instructions in a safe place and be sure to let the executor(s) know the location.

Keep all information regarding organ donation separate and make sure your close family and friends are aware of your wishes. Some detailed instructions regarding specific furniture or jewellery etc. can be written separately to the official will in what is known as a memorandum or codicil.

Probate

A Will is validated through a process called probate. The goal of submitting a Will to probate court is to ensure that the document is indeed the true Last Will and Testament and to confirm the executer and their ability to perform their duties.

The courts can resolve possible confusion between multiple documents and respond to any concerns regarding the legitimacy of a document (during Probate a Will can be challenged).

In Quebec, a notarial Will does not require probate.

Once the courts have accepted the Will and the appointment of the Executor, they will issue a document that officially appoints the executor as the estate administrator. It is important to be aware that once a Will has been probated it becomes a public legal document and can be viewed by anyone who applies for it at the probate courts.

What property can be transferred without probate?

In all provinces except Quebec, probate fees (sometimes called administration tax or probate tax) vary from province to province but are mostly calculated based on the total value of the “estate”. Consequently, it is important to understand what is considered part of your estate, and what is not.

Joint accounts with a right of survivorship, and financial accounts that already include beneficiary designations are not part of your estate (e.g. life insurance policies, registered savings accounts like RRSP’s or TFSA with named beneficiaries). Planning ahead can reduce probate fees.

Power of Attorney (POA)

A Power of Attorney document grants one or more people with the authority to make decisions for you regarding your bank accounts, payment of bills and other finances, property and other responsibilities in the event you are not available because of travel, hospitalization or other reasons. The terms of a Power of Attorney document are flexible. You set the conditions under which it begins and ends, and you can limit its authority to a specific asset or account.

A Power of Attorney will be completed by a lawyer or notary. Once completed, the document will be registered with the Chambre des Notaires/Barreau du Quebec or the law society of your province and becomes an official legal document. The Power of Attorney will provide you with peace of mind in the event of accident or other emergency where you are not able to take care of your day to day obligations.

Living Will (Mandate in Quebec)

A Living Will (in Quebec known as a Mandate) is a set of instructions that define your medical wishes should you become physically or mentally incapacitated. In Quebec, it also replaces the Power of Attorney, which loses its legal power. The document guides how medical professionals respond in the event you require medical interventions like life-support, tube feeding, or resuscitation. It can also include instructions regarding organ donation. You will designate a person(s) to ensure your wishes are followed or to make last minute decisions on your behalf.

This person can be one or more of the executors of your Will or other people that you choose. When possible, it is wise to choose a person or people who live nearby and would be close at hand. A Living Will (Mandate) will be completed by a lawyer or notary.   Once completed, the document will be registered with the Chambre des Notaires/Barreau du Quebec or the law society of your province and becomes an official legal document.