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planned giving and trust ser vices
Part 3 of 3
Death and Debt 101
“‘I direct my executor to pay out of my estate all my debts, funeral
expenses, estate administration fees, and taxes that may be due,’” quoted
the Planned Giving director. “This is generally the next typical will clause. 1
“What happens if a person doesn’t leave enough money to pay all
their debts?” asked the director.
“Let’s consider Martha, a single mother of three who died suddenly
at age 53, leaving only her Canada Pension Plan Death Benefit of
approximately $2,000.” 2
Looking at one of the seminar attendees, the director asks, “Rosalie,
Becky how could Martha have provided the money to pay the
remainder of her funeral costs, the final rent, utility and
household bills, the balances owing on loans and credit
cards, and final income taxes, if any?”
“I don’t know,” Rosalie said. “She couldn’t have saved
much while raising three kids by herself.”
“That’s true,” replied the director. “Does anyone have
Susan’s hand went up. “I think a life insurance policy
would have been a good way to take care of Martha’s
expenses.” “Yes,” the director agreed. “One way to have enough
money at death is to buy life insurance. The payout is
usually very quick, and because insurance money does
not go through the will, there are no taxes to be paid.
Also, you can purchase only the amount of insurance
that you or your family would need if you were to die.
“Sadly, because Martha did not plan ahead,” the
director finished, “her three young adult children were
forced to share the burden of Martha’s last expenses.” n
1 Wills Seminar topics are currently continuing from month to month.
For Canada Pension Plan Death Benefit information, see “Death Benefit”
on the Government of Canada’s website, http://goo.gl/lN74bs. Or search
“Canada Pension Plan Death Benefit.”
2 If someone delivered a big bouquet of flowers to you,
but there is no name, what would you do?
AT THE MOUNT HOPE AND ALDERGROVE
CHURCHES IN BRITISH COLUMBIA.
Stephanie Schafer: First of all, I would probably think that it was from Todd. But if it turned out
to not be from him, I would wonder and wonder and wonder. . . . I would probably feel
greatly encouraged that someone loved me and had thought of me. I would thank God
for His lovingkindness!
Pam Wahl: I would place them out for all to see and be proud of their beauty
and thank everyone I see! I would hope the giver would hear somehow of my
appreciation. Anne Toope: I would automatically wonder who the giver was and whether it was
a man, and if it was, whether he was cute. I would also be wondering what I did right,
or even if it was a mistake!
M Apr i l 2 014