The majority of working Canadians have Employment Insurance (EI) deducted from their wages. This insurance is intended to provide temporary financial assistance to those who are unemployed and looking for work and/or upgrading their skills. EI also provides financial assistance for other reasons though; such as maternity leave, work absence due to illness, caring for a new child, as well as short-term help for those who need to care for a family member who is seriously ill with a significant risk of death.

Compassionate Care Benefits are intended to help those who are employed, but who need a short leave of absence in order to care for a relative that is gravely ill and at risk of dying within 26 weeks. People who are collecting EI at the time can also ask for this benefit. This benefit is payable up to a maximum of 6 weeks; however, it can be shared among eligible family members (i.e. 3 siblings can each claim 2 weeks to be used in succession.)

In order to be eligible for Compassionate Care benefits, you must be able to prove that your regular weekly earnings have decreased by more than 40%. As well, you must have accumulated 600 insured hours within the last 52 week period, or since the start of your last claim. This is known as the qualifying period. There is a 2 week waiting period; however if the 6 week period is shared by family members, only the first person will serve the waiting period.

EI recognizes family members as either your blood relative or a blood relative of your spouse (if common law spouse, you must have resided together for at least one year). These relatives include:

• Your child or the child of your spouse
• Your wife/husband or common-law partner
• Your parent or the parent of your spouse
• Step-parent or common-law partner of a blood parent
• Sibling or step-sibling, as well as sibling or step-sibling of your spouse
• Father or mother in law, either married or common-law
• Son or daughter in law, or your spouse's son or daughter in law
• Uncles and aunts, as well as their partner; or your spouse's uncle or aunt, or their partner
• Nephew and nieces; also a nephew or niece of your spouse
• Current or former foster parent; current or former foster parent of your spouse
• Current or former foster child as well as their partner
• Current or former ward; current or former ward of your spouse
• Current or former guardian or their partners

There is also a provision for someone who although they are not "related" they do consider you as a family member, i.e. friend or neighbor. In this case, a Compassionate Care Benefits Attestation is required from the person who is gravely ill and requesting your help. Care/support is defined as providing psychological/emotional support, arranging care through a third party, and/or directly providing or participating in care.

When applying for Compassionate Care benefits, you will be required to provide documentation proving that the ill family member is in need of care/support, as well as being at risk of dying within 26 weeks. 2 forms will be required to be submitted:

• Authorization to Release a Medical Certificate which is completed and signed by the ill relative or their legal representative
• Medical certificate for Employment Insurance Compassionate Care Benefits which is completed and signed by the ill relative's medical doctor to confirm the significant risk of death within the prescribed 26 weeks

These forms must be submitted at the same time; as well, the applicant assumes the cost of any fees charged by the doctor/legal representative. Only one Medical Certificate is required even if several family members are sharing the 6 weeks leave. If more than one is submitted, the first one submitted will determine the beginning and end of the 6 week period. Compassionate Care benefits end when either the 6 weeks have been paid up and the time period has expired, you have exhausted the maximum payable benefits allowed for your claim, or if the family member dies or no longer requires care and support. If the family member dies while you are receiving this benefit, it is your responsibility to immediately inform the administrator of your benefits in order to prevent EI overpayments.

For more information regarding eligibility as well as the complete list of requirements regarding this benefit, please visit the Service Canada website.

If you're like the majority of  Canadians, funeral planning is not a topic you wish to think about. Whether it's your own funeral, or that of a loved one, it's a subject that we all put off planning. But do you even know how much a typical funeral costs? What are your options? What about pre-paid funerals? These are all questions that do require some thought as well as financial planning, and should also factor into the amount of your life insurance coverage.

Pre-paid funerals do have certain advantages. It ensures that your wishes are specifically carried out, and takes the pressure away from your loved ones of making plans during their time of bereavement. It also removes the financial burden from your family. Pre-paying your own funeral also gives you the time to shop around for the best prices and to decide your own budget. If you do choose this option, make sure you inform your family of these arrangements, who you have pre-paid, and give someone copies of all the necessary paperwork. While pre-paid funerals are designed to give everyone involved peace of mind, there are some disadvantages to this option. For instance, there is no guarantee that the service provider you have pre-paid will still be in business at the time of your death. If you die before all the payments have been completed, the service provider may demand that your survivors pay the outstanding balance before they will honor the contract. As well, if you happen to move outside of the area that the service provider services, you run the risk of not being able to get a refund and/or transferring the services. Penalties may also be assessed for any late payments, and if you change your mind, there is a chance that you will be refunded substantially less than what you have paid in. Canadian provinces may have different regulations regarding this topic, so research what the current law is in your home province.

An alternative to a pre-paid funeral is to set up an interest bearing account that is specifically earmarked for your funeral expenses. This choice will still give you the time to decide on what type of service you would like, as well as pricing the various options you have. If you choose this type of planning however, you must keep in mind that the prices of what you have chosen will probably increase as time goes on, and plan accordingly. Once again, if you die before enough money has accrued in the earmarked account, your loved ones will be faced with either going against your wishes, or having to pay the balance themselves. As well, your loved ones must be able to quickly access the bank account, as well as be informed and able to carry out your wishes.

In order to either plan your own funeral, or plan one for a loved one, you must be aware of all your options, and what these cost. The average funeral in Canada today can range in price from $2,500 to $6,000. This price range does not include such added expenses like a burial plot, headstone, etc. Burial plots can range in prices depending on the location of the cemetery; as well not all burial plots are priced the same, some "desirable" locations within the cemetery are usually more expensive. Likewise, the size and detail of a headstone will determine the cost. The cost of a funeral will depend on what type of service you want, whether you choose burial or cremation, etc.

The 2 most common choices are funerals and memorial services. Memorial services are generally less expensive, as there is no casket, no embalming and no grave liner costs involved. A typical memorial service will cost around $2500, depending on what type of service you are planning. This does not include the cost of cremation however, which can cost anywhere from $500 up to $2000.  A memorial service is simply a service to commemorate the deceased's life; usually the body has already been cremated. Because there is no body present, there are more choices available regarding the location of the memorial service. This type of service tends to be more informal than the more traditional funeral.

Funerals have long been the most commonplace option when a loved one dies. Depending on the type of funeral planned, the cost can run from $2500 to over $7500. Although this is a more expensive alternative to a memorial service, funerals offer the advantage of the funeral home bearing most of the responsibility for the arrangements. They will arrange for the transportation of the body to the funeral home, as well as file the necessary paperwork such as the Declaration of Death. By law, Canadian funeral providers must present you with an itemized list of the prices for all the services and products that they offer. It is important to ascertain whether or not the funeral provider is what is known as an immediate disposition funeral provider; this type of provider has limited facilities and does not offer all services. Legally, a funeral provider must disclose that the facility is not allowed by law to provide full-range funeral services.

Choosing a funeral home, especially when planning the funeral for a loved one, can be difficult. If no previous arrangements have been made, and you need to acquire the services of a funeral home, asking the following questions will help you to choose the right facility:

• Can the funeral home accommodate all your needs? Do they have a chapel, visitation room, reception room, catering facilities, etc?
• Who have your friends and/or family used in the past and can recommend?
• Is the funeral home in good standing with an applicable professional association?
• How long has the funeral home been in your community? What is their professional and personal reputation?

It is important to understand what exactly a funeral home does when assisting you with a funeral. Typically, a complete funeral service requires 80 hours of work; this does vary depending on the individual needs of the family as well as any personal and/or religious requests. The majority of the funeral costs are incurred by charges for professional service, merchandise and final disposition. A qualified funeral director will be able to explain these costs, and assist you with planning a funeral that conforms to your budget.

The professional fee that is charged by the funeral home should include such services as:

• Transfer of body from place of death to the funeral home
• Obtaining the medical certificate of death and completion of government forms, registering the death and obtaining any necessary permits
• Sanitary care of the body, including embalming, restoration, and readying the body for viewing if requested. Embalming is not a legal requirement, but it may be required in instances where the body is being transported after 72 hours.
• Use of the funeral home and all necessary facilities such as: arrangement office, reception area(s), preparation room, chapel, selection room, parking, etc. This should also include the use of service vehicles (i.e. hearse).
• Transfer of the deceased to the crematorium and/or cemetery
• Complete personal supervision of all service arrangement details that precede as well as follow the services: the arrangement conference with the family, preparing and placing an obituary notice, consulting with clergy, cemetery and/or crematorium, arranging and caring for floral arrangements.

The other major expense is the merchandise, i.e. casket, urn, etc. It is important to remember that by law, a funeral home must display their lowest priced caskets and urns. They must also have a book/brochure illustrating the entire product line of caskets that they sell.

Using a reputable funeral home can make the time of bereavement much easier as they will take care of all the details for you. They can also help you make arrangements that are within your budget, as well as helping you to honor any specific requests that may have been made by the deceased.

It’s important when choosing the amount of your life insurance coverage that you incorporate the funeral expenses. You may want to consult with a funeral director in order to understand what all will be involved, and what expenses your survivors will be facing. You may also want to consult with your life insurance broker about ensuring that you have the right amount of coverage.

For many Canadian seniors, maintaining their independent residence sometimes isn't a feasible option. Health issues may make living alone a dangerous situation for some people. Children and/or caregivers of seniors who are facing this issue may be confused as to what is entailed, what level of care is needed for that individual, and what is covered by provincial insurance and what isn't.

Some seniors may be able to live in their home (at least for a period of time), provided they have In-Home Care services. Many different programs are available; some are funded by government agencies or non-profit organizations, while others are offered by for-profit private service organizations. The home care services that are typically provided include:

• Personal nursing care
• Physiotherapy and/or occupational therapy
• Speech therapy
• Counseling
• Day programs
• Friendly visiting
• Transportation
• Foot care
• Homemaking and/or home maintenance
• Information and/or referrals
• Meal programs (i.e. Meals On Wheels)
• Respite Care
• Emergency Response Service

If you think that the senior you care for may need these types of services, contact a local agency to get an assessment. Some services may be covered under Ministry of Health funding, regardless of income; as well, some may offer a subsidy for those who fall within a certain income bracket. Some however, will have to be paid for out-of-pocket if you do not have private insurance coverage.

For seniors who are no longer able to live on their own, a retirement residence may be the best solution. This can be the ideal arrangement, giving the senior the level of support and security they require while being able to maintain their independence and privacy. A retirement residence can also offer the social aspect for those seniors who are feeling lonely and isolated. Retirement residences can greatly vary in terms of what services they offer, as well as the types of accommodation they offer (i.e. single or shared rooms), as well as prices. The majority of retirement residences are privately owned and operated with no government funding, which means you and/or the resident must assume all the costs.

If you are looking into a retirement home for a loved one or someone you provide care for, it is essential that the senior is actively involved in the selection process. Some things to remember when choosing a retirement residence are:

• Make a list of all homes you plan on visiting; also make a list of questions you want to ask, so you won't forget when you are there. Keep notes on the different homes you visit.
• Ask questions not only of staff, but of the residents. Ask their perceptions of the residence, as well as what they like and dislike.
• Don't visit just once, plan another visit, but at a different time of day (i.e. go for a lunch or dinner)
• Ask to view all of the residence, not just the room and common areas. Checking the kitchen and stairwells can give you a good indication of the level of cleanliness and how often things are maintained.
• Ask if they will allow the prospective resident to actually spend a night at the residence, so that they can get a better idea of what to expect.
• Ask for a list of families who will give the facility a recommendation.
• Ask about the neighborhood, i.e. how close are such things as hospitals, churches, dentists, etc.
• Ask about the fees, i.e. is everything included in the price quoted, or will you have to pay extra for additional services, and if so, how much
• Ask how often are their rates increased, and how much notice do they provide for the increase in price

Long-Term Health Facilities (formerly known as nursing homes) are different than retirement residences. A long-term facility is needed for those seniors who have significant health issues and who require a greater deal of care. This type of care is needed for those who, because of age and/or level of disability, can no longer be properly cared for in the community. This is an ideal solution for those seniors who require care on a regular basis, but who do not require long-term hospitalization. Some long-term facilities are publicly funded, while others are not.

If you are facing the challenge of finding services for a senior in your care, you need to find out what exactly their insurance will cover. You may also want to consider the possibility of needing these services in the future, and have the right insurance that addresses this issue. Tangible offers a hybrid policy that combines life insurance with a long-term care component. If needed, a certain percentage of the policy converts into LTC insurance, if not, it simply remains as life insurance. This type of policy offers you the flexibility and security of being able to ensure that you will have the right type of coverage for whatever your needs may be.

Canadians who have RRSPs have the opportunity to withdraw up to twenty thousand dollars tax free to use as a down payment on a home. This money also does not have to be claimed as income on your tax return. This is a great opportunity for those who wish to be homeowners, but cannot afford to save for the down payment and contribute to their retirement savings.

The Federal Home Buyers Plan is available to those who qualify as "first time" homebuyers. This is defined as any Canadian who has not owned a home that they have occupied as their principal residence for a minimum of five years. You can qualify for the program at any time during the fifth calendar year since owning a home. This rule applies to both you and your spouse regarding previous home ownership. If you have owned a home within the previous five years, but your partner has not, then while you are not eligible, your partner will be. However, if you are using the homebuyers plan again, you must not have an outstanding balance on the previous Home Buyer Plan loan.

There are certain criteria that must be met in order to qualify for the HMP plan.  You must be considered a factual resident of Canada, meaning that even if you are not currently living in Canada, you are considered a Canadian resident for income tax purposes. You must also enter into a written agreement (offer of purchase) to buy or build a qualifying home. This agreement can be with the builder, contractor, realtor or private seller. It is important to know that simply obtaining a pre-approved mortgage does not satisfy this requirement. You must also intend to occupy the home as your principal place of residence within one year of buying or building your home. Certain exceptions can be made if you are unable to reside in the home, as long as your original intention was to move in within a year. As well, either you or your spouse (this includes common law spouses) cannot own the home more than 30 days before the planned withdrawal.

You must make the withdrawal request for the funds in the same year in which you wish to participate in the Home Buyers Plan. Each person (if applicable) can withdraw a maximum of twenty thousand dollars from your own RRSPs. Multiple withdrawals however, are allowed. The home that you are buying must be located in Canada, and can be either an existing home or a home under construction. This includes single detached family home, semi-detached homes, town home, mobile home, condominium unit, a share in a co-op, or an apartment.

You must begin repaying the withdrawal under the HBP starting the second year following the year in which you made the withdrawal. You make the repayments by contributing to any of your RRSPs in the year the repayment is due or within the first 60 days of the following year. However, you cannot designate sums to be considered s payments to your spouse’s (including common-law) RRSP are not considered payments, and vice-versa. As well, transferring amounts from another registered pension plan, deferred profit-sharing plan or registered retirement income fund will not be considered as a payment.

An important part of any financial plan is dealing with your debt. For most Canadians, debt is a fact of life and is not detrimental to their overall financial goals. However, too much debt can negatively impact financial health. Missing payments may end up hurting your credit rating; as well you may not be able to save and/or invest the money you need to in order to accomplish your long-term goals.

Not all debt should be considered "bad". Debt that is incurred for the purposed of attaining assets that will more than likely increase in value is considered "good" debt. This includes buying a home, borrowing money to invest (stocks, bonds, RRSP's) that can end up making you more money than what you spent on the interest payments. These assets can also be used to secure the debt in order to qualify for lower interest rates. Money borrowed for investment purposes may also be tax-deductible.

Debt that is viewed as "bad" comes in the form of purchasing items that depreciate in value (cars, electronics, etc), or is used for daily spending habits. Debt is usually incurred this way in the form of credit cards. In fact, debt in this form can actually hurt your chances of getting a mortgage and/or the amount you are qualified for. Credit cards that have really high interest rates can keep you in debt for a long time if you cannot afford to pay off the balance immediately. 

There are ways to manage your debt without having to to take the drastic measure of declaring personal bankruptcy. The following tips can be used as a guideline not only for those currently in debt, for also for those who wish to avoid having their debt become out of control.

• Spend less than you earn. Keep a running log of everything you spend. Make sure to factor in expenses that may only occur once a year (house insurance, vacations, Christmas spending, etc). These expenses should be divided by 12 and added to your monthly total of what you spend. Your log will be able to help you determine your earnings/expenditure ratio, and give you an idea of where you can cut back, i.e. taking lunch to work, etc.
• Restructure your debt. Almost half of Canadians are paying more interest than necessary due to the fact that they haven't shopped around. Invest some time researching getting a cheaper interest rate for not only credit cards, but for your loans. 
• Refinance your mortgage. You may be able to get a lower interest rate on your mortgage by refinancing it. You also may want to consider using a home equity loan and use the money to pay off credit card debt, which is generally higher in interest payments.
• Personal line of credit. This can be one of the cheapest ways to borrow money. Lines of credit can be secured against your assets, or unsecured. The rates do vary with the prime, but will be considerably less than the interest charged for credit cards. Money obtained through a line of credit is available for any purpose.
• Consolidation loans. Unlike a line of credit, this money is borrowed for the specific purpose of paying off debts that carry higher interest rates. The bank may directly pay off your creditors in order to insure that the money is spent in the manner for which it is intended. The bank may also require that you cut up your credit cards and/or that no new debt is incurred.

The amount of your debt along with the amount of your income will determine the best way for you to manage your debt. The end result will be a healthier financial plan, and the realization of your long-term goals.

Midnight of February 29, 2008 is the deadline for RRSP contributions for the tax year of 2007. RRSPs give Canadians a tax break, as well as letting your hard earned money grow tax-deferred. This differs from capital gains and interest accumulated on other investments, which are added to your taxable income for the year. As RRSPs are deducted from your taxable income, it effectively reduces the total amount that is subject to taxation. Waiting until retirement to cash in your RRSPs means that you are now in a lower income bracket, therefore you will pay less taxes, as your RRSPs are only taxable upon withdrawal.

RRSP is an acronym for Registered Retirement Savings Plan. It is not a specific financial product. It is rather a number of investments that are registered with the federal government specifically earmarked for your retirement. The Income Tax Act has a current list of eligible investments from which you can choose; the most popular is mutual funds, guaranteed investment certificates, accumulation annuities , segregated funds, and equities. However, you have a wide range of possible investments to choose from, depending on the financial risk you are willing to take. Some investment choices are quite volatile; they can make you a lot of money, but you must be prepared to take the risk of losing a lot of money. Others are more conservative; you may not make as much, but the risk factor is lower. Talk to your financial advisor about which types of RRSPs are best for your retirement savings plan.

Due to last year's federal budget, Canadians can now contribute to RRSPs until the end of the year in which they turn 71 as long as they are still earning income. This is a 2 year extension from the previous deadline. Once this deadline has been reached, 3 choices will be available:

1. Converted the RRSPs into a Registered Retirement Income Fund (RRIF) which is a tax-deferred retirement plan. Like RRSPs, the RRIF account is registered with the Canadian Revenue Agency. RRIFs are used to generate income from savings accumulated from the previous RRSPs. Once an RRSP has been converted into a RRIF, no further contributions can be made. RRIFs offer an annual minimum withdrawal which is cashed out and sent to the accountholder; this amount is tax free.
2. Purchasing an annuity. This is a good financial idea when interest rates are higher.
3. Cashing out. This is not recommended as taxes will have to be paid on the whole amount.

The 2007 tax year for the first time also offers senior couples the option to split their pension income. They can now allocate up to 50% of their eligible pension income to their spouse/common law partner. This includes company pension plan payments, RRIF payments as well as annuity income. For those who are still working and contributing to their RRSPs, it may be advantageous to contribute to a spousal RRSP if your spouse/partner has either no or little income for the year.

You can "over-contribute" by up to $2000 to your RRSP without being penalized. While you will not be eligible for the tax deduction, you will benefit as the earnings will be tax-free. Consider the option of borrowing money if you do not have the available funds to contribute the maximum amount; you may be able to make more money than you will spend on the interest for the loan. To calculate what your maximum allowable contributions are, use the calculator found at the Canadian Savings Bond website.

It's also important to decide who will be the beneficiary of your RRSP. By naming your spouse/common law partner, dependent child or grandchild, the proceeds upon your death may be tax-deferred even longer. Discuss this with your financial advisor in order to set up the most beneficial plan.

Most people assume that only those with wealth need a financial planner. However, everyone can benefit from professional financial advice, especially when it comes to retirement planning issues. Hiring or consulting with a financial planner can help Canadians avoid costly financial mistakes that can greatly affect their future.

A qualified financial planner will have a broad range of financial knowledge, including such issues as insurance, tax planning, investments and estate law. He or she will be able to help you coordinate your financial strategy with the other relevant parties, such as your estate lawyer, insurance broker, investment professional, etc. The financial planner you choose will be able to cover all aspects of your financial health, and make sure all these areas are sufficiently covered.

It's important to recognize that many provinces do not regulate the term financial planner. There is however a not-for-profit organization known as the Financial Planners Standards Council (FPSC) which sets the professional standards for the industry. The FPSC sets, enforces and promotes the highest competency and ethical standards in the financial planning industry. Planners who are recognized by the FPSC are denoted by the letters CFP, which stand for Certified Financial Planner. Financial planners who have this credential have passed a national examination for financial planning and are held to a strict professional ethic.

Whether you want to consult with a financial planner, or plan on hiring one, the following  tips will help you choose the planner who’s right for you:

• Have a basic idea of what you want. While your financial planner will help you come up with a concrete financial plan, have a general idea of what your goals are as well as thoughts regarding insurance, estate planning, investing, etc.
• Be prepared. Do your homework to familiarize yourself with various financial planning strategies as well as the terminology.
• Get referrals.  Ask your friends and/or colleagues who they use for their financial planning. You can also contact the FPSC for a referral to a professional financial planner.
• Ask to see qualifications.  A professional will have no problems disclosing their education status, what their degree is in, as well as if they are qualified as a Certified Financial Planner.
• Shop around. Plan on interviewing several financial planners. Ask such questions as how long they’ve been in business, whether their assistants will be handling your account, etc.
• Do a background check. You can contact their professional associations to see if complaints have been lodged against someone, and if so, what the outcome was.
• Ask for references. If the financial planner you plan on using has associations with other professionals i.e. insurance agents, investment counselors, etc., ask for their phone numbers so you can ask them questions.
• Know what to expect. Get a document in writing about the method of compensation, qualifications, etc. so you know exactly what the financial planner is offering, as well as the method of payment.
• Reassess the situation on a regular basis. If you are hiring a financial planner on a long-term basis, know what's going on. Schedule regular visits with your planner so he or she is aware of your changing needs, as well as time constrictions.

Once you have decided on which financial planner you will be using, whether for a consultation or a long-term relationship, you’ll need to do some thinking on your own about your finances. While your planner is there to give you valuable advice, you need to be knowledgeable about your financial status, as well as the areas you need the most help with. The areas that are most common in financial planning are:

• Budgeting: Regardless of income, everyone should have a household budget. Making and following a budget will let your financial planner know exactly how much money you will have every month to invest or save. This will help your planner to set up a plan that will best suit your needs. Your planner will also have suggestions about how much money you will need every month in order to reach both your short and long term financial goals.
• Saving and investing: In order to reach any sort of financial goals, this needs to be determined. You will have to decide on short term financial goals such as savings for a vacation, new cars, etc. You also need to decide on long term financial goals such as age of retirement, university education for your children, etc. A financial planner will be instrumental on helping you figure out the exact amounts, and the best investing plans for you in order to reach your goals. You and your planner will also have to decide what level of risk is going to be involved in your investment strategy.
• Insurance: Your planner will be able to look at what you currently have insurance for, and whether or not it is sufficient coverage. It's important that you have the right coverage so that your assets are protected, as well as coverage for if you can no longer work, etc. The proper amount of life insurance is also important should anything happen. Your financial planner can work in conjunction with your insurance broker to make sure that all your insurance needs are covered.
• Debt: Your goal should be to get out of debt, and your financial planner can help you devise a way to make that happen. Make sure you have all the information such as credit card balances, loan statements etc. in order to accurately calculate the total amount you owe.
• Taxes: This is an important part of your financial plan. Your planner will be able to help you with a strategy that can minimize your tax liability. Proper tax planning is essential to a successful financial plan.
• Estate: Your financial planner can help you make sure your plans are carried out as you wish. Depending on the size and intricacies of your will, your financial planner may also be one of your executors. You can also get advice on the taxation issues that will be applied to your estate.
• Retirement: In order to enjoy your retirement, you will need to have money saved. Letting your planner know at what age you want to retire, and the type of lifestyle you would like to have will enable him/her to set up the proper investment strategy for you.
• The whole financial picture: It's obvious that are many factors to consider when setting up a successful financial plan. This is where a planner is the most help; to put together all these components and give you the best advice in order to attain all your goals.

A financial planner, whether for a consultation or a long-term relationship, can be a great asset. Even if you don't have a complex financial situation, getting some help and clarity on your financial issues can make sure that you have the latest information and advice available. Your planner will be able to consider all the aspects involved and help you attain your goals. For more information on financial planning and choosing a qualified planner visit the Financial Planners Standards Council, you can also obtain a list of qualified professionals in Canada.

Although planning your will can be an unpleasant idea, it is the only way to protect your loved ones and ensure that your wishes are carried out. Choosing an executor is a very important component of planning your will. The executor (or executors) will be responsible for all the financial arrangements and notifications. It is important that who you choose is aware of what exactly is entailed with this job, and that everyone is comfortable with this decision.

So, who should you choose? You can choose more than one person. You may decide to choose a close friend or relative that you trust, as well as someone who is experienced in financial matters. This can be a wise choice if you have a complex estate that will require the time and effort of more than one person. However, make sure that the co-executors will be able to work together effectively. You can also opt for a family member or friend that you trust to work with a professional in the finance industry who will be paid a set fee for their service.

It is important to choose someone who has the time to devote to administering your estate. There are many responsibilities that your executor must take on, and be able to do during business hours. This includes such tasks as meeting with your lawyer, your insurance agent and/or financial advisor. For someone who works fulltime and/or has a lot of commitments, this may be an imposition to them.

The person(s) you choose should have a high probability of surviving you. It's a good idea to revisit this idea every few years; circumstances very often change. For instance, you may have chosen someone who 3 or 4 years later has serious health concerns, has started raising a family, etc. and can no longer devote the necessary time. If choosing a financial advisor/consultant as one of the co-executors, it is important that the specific person or business is still practicing and available.

The person(s) you choose must be aware of exactly what is entailed in being the executor(s).  Problems can arise if the person(s) you have chosen is not aware of the duties and responsibilities that are involved. Before accepting the role of executor, they must be willing and able to:

•    Obtain the death certificate and be able to participate in or fully arrange the funeral. If you have specific   requests about the service you would like, they need to be aware of these arrangements.

•    Find and review your will. This may entail meeting with a lawyer who can apply for probate.

•    Inform the beneficiaries that they have been included, as well as updating them on the progress of the probate. This can be a big job depending on the size of your estate and the number of people you have included in your will.

•    Notify all businesses and institutions of your passing. Banks, credit card companies, insurance companies, landlords, etc. must be notified as soon as possible. Items such as the phone company, internet, etc. must be notified and any pre-authorized payments stopped.

•    Apply for all life insurance benefits as well as any Canada Pension Plan death benefit if this is applicable.

•    Compile a list of the estate's assets. This is one of the most time consuming parts of being an executor. This list must include every bank account, investment, pension, registered plan, property and anything and everything else of value that you own. Each asset must be located, secured and valued. Detailed records must be kept of any transactions made on behalf of the estate for the courts and beneficiaries.

•    Paying the estate's debts, expenses, and taxes. All debts that are owed must be paid, including funeral expenses and the final tax return.

•    Administer any trusts set up in the will. The executor will be responsible for this task for as long as the trust is in existence.

•    Distribution of bequests, including any personal items (family heirlooms, etc) as well as property, stocks and bonds.

As you can see, the role of executor is complex and time consuming. Depending on the size and complexity of your estate, it can take months (sometimes years) before all issues are settled. If you choose a financial professional as executor or co-executor, they will specify the amount they need to get paid for their services. With friends and family members however, issues can arise revolving payment for their time. Specify an exact amount in your will that will sufficiently compensate them for their time and efforts. It is important to state the amount so there will not be any disagreements among the family and/or beneficiaries.

Once you have selected your executor(s), make sure that you have all your required documents together i.e. bank account numbers, insurance policies, deeds, and any other financial documents, as well as your current will. You also have to make it known where these documents are stored (lawyer’s office is usually advisable). Include in this a current list of all beneficiaries' addresses, phone numbers and email addresses. You can also compile a separate list of the information that will be needed such as:

•    The provincial location for your Canadian Pension Plan
•    Revenue Canada (for taxation information)
•    Your banking representative
•    Insurance broker
•    Service providers (phone company etc)
•    Charities that you have specified in your will

Remember that the more organized your will and documents are, the less stress will be incurred by your family and friends. Make people aware of your intentions to avoid confusion later on. Consult with a lawyer and/or financial advisor about your wishes, and the correct way to construct your will. Also consult with your life insurance representative to make sure that your coverage is sufficient to carry out your plans.

Each January brings with it the usual resolutions: more exercise, spending more time with family, etc. However, January is also a good time to look back at your finances and re-evaluate your financial strategy.

Re-evaluate your health and life insurance coverage. If you have successfully quit smoking/ and or lost a significant amount of weight, you may be eligible for cheaper rates. You  may want to apply for disability insurance so you’re protected in the event of illness or injury.

Review all your insurance policies. For instance, if you belong to AAA Auto Club, which includes a towing service, remove the towing service on your auto insurance. For those who have health insurance as well, you may not need the medical insurance that's included in the your auto insurance plan. By removing these unnecessary items, you can reduce your premiums. Know exactly what is covered in your health, life, and auto insurances so that you have the coverage you need, and aren't paying for unnecessary items. Consult with your insurance broker about any new insurance products that have become available and may be beneficial for you.

Review your spending and saving habits. Set a fixed amount that goes directly into a savings account every payday. If you need a debit card for this account, get one that allows you only deposit, not withdraw, to avoid impulse buying.

Pay your bills online. You save money on postage and checking costs, and have immediate access to your records and payment history. It's also more environmentally friendly!

Review your credit report annually and try to raise your credit score. Cancel any unused credit cards as well as limit the amount of credit lines that are in your name. Set up loans with automatic payments so you will not be penalized for late payments.

When interest rates are low, add to your mortgage payment to pay down your balance. See if your bank or credit union will allow you to convert your mortgage to biweekly payments that match your pay periods. This method gives you the opportunity to make one extra monthly payment each year, and pays down the principal and saves on interest. Be advised that some institutions may charge a fee to set this payment method up.

Start the new year off with a financial plan in place that realistically reflects your goals. Discuss your goals and other financial concerns with your insurance broker in to make sure that you have the correct coverage.

As the year 2007 nears the end, it's a good time to evaluate your business. Begin the new year with a detailed business plan in place, as well as defining your goals. Go beyond the profit and loss figures; maybe it's time to research using new suppliers, a new marketing strategy, etc.

Use the arrival of the new year as a time to step back and re-focus. By financially planning for your business, you give yourself an advantage. Being proactive rather than reactive can have positive results. You need to have a budget in place to ensure a positive cash flow. This needs to cover not only expenses such as payroll, but contingencies as well. Money will need to be set aside for taxes, capital expenditures, overhead, etc.

Look ahead to what you wish to accomplish in the coming year. You may wish to buy new computers, or upgrade your technology. This is also a good time to consider whether you need to hire more people to accomplish your new projections. If you don't already have it, group insurance can be a useful tool in attracting and retaining qualified personnel. It's also a wise decision to decide on changing your corporate identity. Changing your corporate identity may mean different liability and tax considerations; many of which are required to be done in the first few months of the year.

If you are partners in a small business, it can be beneficial that all partners have a term life insurance policy. These can be taken out, with the other partner named as beneficiary in order to insure the business. Agree on the amount and the length of term you wish to purchase; this will safeguard your business should something happen to one of the partners.