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Individuals typically believe that a Will governs how all of their assets will be distributed upon their passing.  In fact, there are a number of techniques that can and should be employed to effect transfers.

Individuals will want to ensure that appropriate arrangements are in place, with tax and other considerations having been reviewed. Planning may include the making of advance bequests (transfers made prior to death) and charitable bequests, as well as the implementation of trusts.

We also provide advice to lawyers and other estate planning professionals as to the appropriate use of annuities in an estate setting.

Ontario, in 2015, implemented a new regime (including complex filings) for probate fees. This has made the probate process more cumbersome, and many heirs may see delays in receiving distributions from an estate.

When working in the pension consulting arena, it became clear that the primary focus of pension consultants was to provide expert advice to employers sponsoring various retirement arrangements.  There was a void as it related to employees who sought competent advice as to their entitlements under plans.

Lea has considerable experience in this area, and has advised on significant number of cases.  For members of large plans (for example, OMERS, OPG, Hydro One, OPTrust), the commuted value is often the plan member’s largest asset.  The amount of the commuted value may even exceed the value of the home, even in the GTA!  A plan member will want comprehensive advice in this area.

Plan members will want to make informed decisions as to what to do with their pension asset.  For example, plan members will want to understand the provisions of their pension plan that relate to when a pension may be commuted.

More over, when contemplating retirement, the appropriate planning is essential. In some situations, the best strategy may be to remain in the pension plan. In other circumstances, choosing to commute may be appropriate.

Options that a plan member may have in respect of the commuted value may include:

• Doing a direct transfer to another registered plan (provisions of the tax laws typically cap the amount of the transfer),
• Purchasing a “copycat” annuity, or
• Transferring the amount to a (locked-in) RRSP, subject to limits and paying tax on the balance, or
• Transferring the amount to an Individual Pension Plan (where still permitted after 2019 Federal Budget changes).

The appropriate course of action can only be determined by reviewing the plan member’s specific circumstances. It is also critical that the requirements of the pension supervisory authorities (for example Financial Services Regulatory Authority of Ontario – FSRA) and Canada Revenue Agency (CRA) be complied with, as mistakes in planning can lead to significant tax liabilities for the plan member.

When we use the term “copycat” annuity we mean a life annuity that has rights that CRA are not “materially different” from what the benefits under the pension plan would have been. While at Standard Life, Lea recognized that there were gaps in both pension and tax legislation as it related to commuted value transfers to “copycat” annuities.  She worked assiduously to have these issues resolved, and as a consequence of this, many plan members (for example in the automotive industry) were able to acquire annuities where this otherwise might not have been the case.

Lea has spoken at a number of forums on this topic.

Lea’s thorough understanding of retirement plans allows her to provide advice in this area. She has implemented Retirement Compensation Arrangements (RCAs) and advised on other savings and retirement plans.

She also provides advice to prospective retirees as to their entitlements under employer sponsored and personal savings plans. Also, many clients facing commutation decisions may wish to have a retirement plan prepared for them. We are also pleased to prepare retirement plans for clients planning for their retirement.

Lea implemented her first IPP in 1991, when this strategy again became available to incorporated business owners.  While later employed at a pension and benefits consulting company, she was responsible for all of the IPPs.

She is an acknowledged expert in this area, having both published articles in this area and spoken widely on this topic. She has also been engaged as an “expert witness” as it relates to litigation in this area.

She is well equipped to advise in this area, including identifying situations in which this is an appropriate strategy for a business owner.

She has a strategic relationship with actuaries working in this area.