Background

Alan and Sue have three adult children: Sharon, Shayla, and Charlie. Charlie, who lives with them, has significant disabilities; he is unable to work and receives social assistance benefits that provide a monthly stipend and prescription drugs. Alan and Sue want to ensure Charlie’s well-being after they pass.

Discovery

While Alan and Sue initially wanted to update their wills, we explained that a properly structured tax-efficient estate plan is much more than a will. In addition to Charlie’s needs, they needed to consider their full family situation, goals, and concerns. Through a focused, relaxed, discovery conversation, we learned:

• Charlie qualifies for the disability tax credit. Alan and Sue also recognize that Charlie should not receive a direct inheritance because he would not be able to manage it, and it could cause him to be disentitled to future social assistance benefits. 
   
• Shayla is a spendthrift and declared bankruptcy a few years ago. Alan and Sue are concerned if she inherits a large lump sum that she would not properly manage it.
   
• Sharon and Charlie have a close connection, and Sharon is committed to looking after Charlie after Alan and Sue pass.  
   
• Sharon’s relationship with Shayla is strained because she feels she has taken advantage of their parents financially over the years.