Imagine you are sitting at the desk or table where you sit when you pay your bills. Your chequebook is there in front of you. You are going to write a big cheque today.

It’s a cheque for $500,000 and it’s causing you to pause. You reach for your pen and you fill in the number $500,000 and then you fill in the part where you write it out in words, Five Hundred Thousand Dollars and you make that little line and the two little xx’s.

You pause again and sigh as you stare at the “Pay to the order of” line and you begin to write Canada Tax and Revenue. How do you feel as you write that line? Does it make your stomach queasy? Does it make your head hurt?

Now re-imagine that scene. As you place your pen on the “Pay to the order of” line you smile as you begin and you write the names of your children, your grandchildren and your favourite charity. Now how do you feel? Do you feel satisfied? Maybe even joyful?

You see it doesn’t matter if that number is $5,000, $50,000 $500,000 or $5M. You only get to choose who receives it if you plan it that way. 

It’s not you who fills in that cheque. It’s your executor who has to fill in the pay to the order of and if you want to choose who receives your money you need to take control now.

There are 3 possible recipients of your estate. They are your family, your favorite charity and Revenue Canada. You can pick two but you have to do it now. 

I was talking to my client Dorothy the other day. Dorothy was interested in leaving a gift in her will to the food bank in her community. The first thing I needed to discuss with Dorothy was her own needs because Dorothy also had a fear that if she lived too long she might not have enough money. I needed to show Dorothy that there would be money left over. Once she knew that, we had more to discuss.

Dorothy’s next concern was for her family. We talked about what Dorothy would like to leave to her children and her grandchildren. She wanted to be sure the grandchildren could go to the schools they wanted to attend.

I showed Dorothy which assets would have the most impact when left to the foodbank and which assets would flow smoothly to her children and grandchildren. We moved a few things around and designated beneficiaries. Dorothy was able to help her family and give a significant gift to the food bank. Because of the planning it was a larger gift than she had first contemplated. It was truly a win/win. Dorothy chose to share her decisions with her family. We arranged a meeting with Dorothy’s family where Dorothy shared her reasons for supporting the food bank. It was the story of when she was a little girl and her father had pneumonia and couldn’t work and they had to rely on the generosity of others. Dorothy told her family what it felt like to be afraid and hungry. Her family had never heard that story before. Dorothy was overjoyed to be confident that her retirement was secure, to help her family and to give a substantial gift to the food bank. Her gift showed her family why she valued giving back to the community. 

Dorothy showed her family how much she cared about them and that she cared about the community as well. She shared her values even in leaving her money behind. That is what Dorothy’s money said about her – that she cared. She designed her contribution.

Dorothy followed 5 steps to her Designed Contribution.
  1. She clarified what was important to her. 
  2. She stress tested her retirement income plan.
  3. She allowed herself to imagine the impact that she could make to a cause that was important to her.
  4. She considered her options and chose to give effectively by repositioning assets.
  5. She communicated her values.

How prepared is your estate? What if you could make a far bigger impact than you ever imagined by leaving more to your family, more to charity and as little as possible to the tax man? Send me a quick email and I’ll send you an estate checklist to help you determine your next steps. 

When we are mindful about the way we leave our money behind, we cast a vote for our values and we practise ☺Mindful Money Management. Join the mindful and create a better world.

Imagine what it would be like if we all became mindful. Mindful Money Management makes that happen when you spend, invest and donate to create a better world.

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How are you voting for your values? I’d love to learn about the impact you plan to make. Please feel free to contact me at [email protected] with your comments and ask to be included on the guestlist for my next Mindful Money Management Zoom Workshop. See you there!