WHEN WE THINK OF WELLNESS, we most often think of physical wellness. At Speakwell, we believe there are other kinds of wellness such as financial wellness and community or global wellness. To that end we are including a financial section in each issue along with some very worthwhile causes under the heading of "Global Wellness" that we invite you to consider. Take a look at each one and decide if there is something you could throw your support behind. « The concept of total wellness recognizes that our every thought, word, and behavior affects our greater health and well-being. And we, in turn, are affected not only emotionally but also physically and spiritually. » :: Greg Anderson
Financial solutions for when life happens!
by David Mason, CLU, CFP, RHU
THROUGHOUT YOUR LIFE you may be approached by a family member or friend to act as the executor of their estate. What should you consider before saying, 'yes'? While it's flattering to know that you are so highly regarded, before you say yes you should carefully consider the responsibilities and duties of this role. This is especially true if you have not acted as an executor before. This month we will identify some of the points that you should consider if you find yourself in this position.
Accepting an appointment as an executor
Within your role as an executor, you are entrusted with the responsibility of administering an estate by carrying out the wishes of the testator (the individual in whose name the will is created) as expressed in their will. Although potentially rewarding both emotionally and financially, being an executor can also be complicated and time-consuming. Before you decide to take on this role, give some thought to the following:
Potential complexity of the estate Estate administration has become increasingly complex. For example, the estate under your administration may involve assets in different countries, beneficiaries from different marriages and sophisticated investments or business interests. It's a good idea to make sure you understand these parameters before accepting the appointment of executor.
Your availability and willingness Depending on the complexity of the estate, your role as the executor may continue over a few years. as an executor, you are generally required to carry out all of the duties personally, and are usually not allowed to delegate your responsibilities. therefore, make sure that you have an adequate amount of time, energy and ability to devote to this task.
Your knowledge in business and financial matters As an executor, you may be called upon frequently to exercise your business judgment in certain circumstances such as: making investments on behalf of the estate, minimizing taxes payable and preparing tax returns. while you can, and in most cases should, retain legal and tax professionals to help you in these areas, you should still make sure you are comfortable dealing with these matters.
Your ability to deal with beneficiaries Perhaps the most difficult task for an executor is dealing with the family and all of the politics that can arise during the administration of an estate. executors are often called upon to make decisions that have financial consequences for the beneficiaries. so be prepared to act in an impartial and objective manner to best balance the needs of all beneficiaries, and to limit the potential conflict and hostility.
Responsibilities of an executor
The responsibilities of an executor are generally as follows:
locate and review the will
make funeral arrangements
solicit professional advice (legal, financial, tax)
notify beneficiaries of any bequests
secure estate assets
open estate accounts
submit the will for probate
indentify estate creditors
convert residual estate assets to cash
pay any financial obligations
complete final tax returns & obtain a clearance certificate from CRA
distribute inheritances
close estate accounts
Duties of an executor
An executor is expected to perform their duties in the same way that a prudent person would in managing his or her own affairs. the professional practice of acting in the best interest of another party is known as fiduciary duty. the best way to think about it is that if you act honestly, sensibly and to the best of your ability, you will generally not be held responsible for any losses incurred by the estate.
So in general, try to make sure that you:
avoid conflicts of interest, such as transaction involving the estate that result in a profit to you personally
exercise all discretion granted to you in a reasonable manner
make any necessary investments in a cautious and prudent manner
act impartially and objectively with all beneficiaries
Executor compensation
As an executor you are entitled to some compensation for your efforts. in terms of the nature and amount of your compensation, you may want to discuss this in advance with the person who appointed you (the testator) and incorporate any agreements into the will. you should also note that any bequest (assets passed on through the will) made to you may also be presumed to be your compensation. therefore any compensation beyond the basic bequest should be indicated in the will.
If compensation was not discussed in advance, then the amount you may be entitled to can be based on the following:
the size of the estate
care and responsibility involved
skill and ability shown
success of the work performed
Closing thoughts
Although acting as an executor is a serious and potentially time-consuming role, it can also be a personally gratifying one as well. the more preparation and honest consideration you give to the role, the more effective you will be in fulfilling the accompanying duties and responsibilities, and achieving the final wishes of your family member or friend.
This article is intended to be general in nature and should not be construed as tax, legal or accounting advice. readers should obtain tax and legal advice pertaining to their own circumstances before taking action. the information contained in this article was provided by aim trimark investments.
Drag your thoughts away from your troubles ... it's the healthiest thing a body can do :: Mark Twain
:: David Mason is a financial advisor in Victoria, BC.
He is a Chartered Life Underwriter, Certified Financial Planner and Registered Health Underwriter.
He can be contacted at david@donnellyadvisors.com »
IREAD SOMEWHERE RECENTLY that if all the money spent on weight loss and dieting in North America could be reassigned, it would be enough to totally eliminate hunger throughout the world. Such is the irony of life today.
I spend a lot of time in Tanzania, undertaking volunteer work for the Canadian Harambee Education Society (CHES) — a Canadian NGO whose mandate it is to provide secondary education to girls in two small districts in Kenya and Tanzania. Childhood obesity is an unfathomable concept there.
More than 95% of the cropland in the area I visit when I am staying in the small town of Katesh is dedicated to growing either corn (maize) or beans. No one can afford fertilizers but there are lots of cattle, sheep and goats in the district. During the dry season, livestock is encouraged to graze on the fields. Hence some level of natural fertilization occurs. If there is an adequate wet season between March and June, these crops translate into year-long meals of ugali (maize porridge) and bean stew. When available, tough meat from the ever-walking cows and other vegetables are added to the mix. Whatever is harvested after the rains has to provide a family with sustenance until the next harvest period. This generally means that many families eat adequately from July to November and then less and less until the following June.
These schoolchildren are lucky as there is a water source near their school. Some drink the water while others collect it to irrigate their “agricultural project” which is part of their syllabus. Local villagers also use this source.
A child will rise at dawn and seldom have anything to eat before he or she heads off to school which can be up to 10 kilometers away. Thanks in no small part to the initiatives of my wife Catriona, a few local schools now provide a lunch programme consisting of a bowl of ugali with sometimes a spoonful of beans. Most schools do not offer this which means that some children taste food for the first time only when they get home and even then, will have to wait until it is dark — about 7 pm.
We visited one elementary school — Deloda — which was miles off the beaten track. The adjacent village consisted of three huts and the nearest water source was eight kilometers away. The school had an enrollment of 228 students but on the day we were there, only 34 were attending. Two of the three teachers were there that day and showed us their accommodation. It consisted of a thin foam rubber mattress that they put down on the floor of a tiny storeroom wedged between two classrooms.
Two school girls walking home are passed by a woman carrying water
We asked one of the teachers to explain the low turnout.
“Hunger,” he explained. “They are not strong enough to walk back and forth to school and even if they were to come, they are not able to pay attention in class.” We discovered shortly afterwards that many families in the area were surviving by eating grasshoppers, roots and grasses.
Walking is a means to an end in the Tanzanian outback; one does not do it for exercise. Mr. Queleka, age 83, walks the 25 kilometers from his home to the CHES House to attend a meeting and is generally the only person to arrive on time. This is not considered out of the ordinary. However, when Catriona and I go for a walk on the weekend we continually have to explain that we are walking merely for the sake of walking and that we are not actually going anywhere. Tanzanians are very tolerant people. What we say puzzles them but they accept what we say and no doubt later in the day talk about the strange Mzungus (white people) within their family circle.
Maasai women and children take containers of water back to their village. The water has been collected from a parched dam.
Water is plentiful and taken for granted where I live on the west coast of British Columbia. Some even refer to this as the wet coast. This is not the case in most parts of Tanzania where any rain is unlikely between early June and late November. The so-called short and long rainy seasons in between are never certain; often the rains come late, stop early or, on occasion, fail to come at all. During such times the rivers dry up and the water table drops. We have seen hand-dug wells of 90 meters come up dry.
A young woman collects water from a hole she has dug in a dry sand river
We of the first world are prolific wasters of water. We wash cars and driveways, water lawns that produce no food, flush toilets after every tinkle and spend 15 minutes in a shower. We would think twice if we had to spend three to five hours a day acquiring water for our household. Each load would be only as much as we could carry at one time — generally about 20 liters. Our friend Ceci taught in a school that had no water supply. Like her counterparts at Deloda, she slept in the storeroom. She was far too busy in the classroom to walk for water every day and so paid a young fellow with a donkey to bring her 20 liters every three days. With this supply, she cooked, washed and laundered — and looked and dressed like a fashion model. Most of us flush more than that by lunchtime daily.
The outskirts of Katesh in the dry season
When water is plentiful, it can affect great change. The Jane Goodall Foundation sponsors the Roots and Shoots programme; an international environmental education for children. When the headmaster of Qedang'onyi Elementary School pointed out that he had 24 students in the school who were orphans and who therefore had no means of support, Margreth, one of our CHES graduates, pitched the idea to the school to grow vegetables. When sold at the market, the proceeds could be used to support the orphaned kids. As the school was fortunate to have a water supply for two hours a day, it tried to do this for two growing seasons. Unhappily, as soon as the crops started to mature, the local cattle and sometimes the school's neighbours helped themselves to the produce. The headmaster mentioned this to Catriona, saying that the problem could be alleviated if the garden had a fence; one that the school could not afford to build. Catriona in turn mentioned this to a friend in Victoria. She in turn hosted a champagne brunch and within two hours had collected the $1100 needed for the fence. We took the funds to the school on our next visit and the fence was in place a few weeks later.
Almost the same scene [Katesh] after the rains have come
We now play with the school's name to refer to it as the Garden of Q'edan. Rows of vegetables are harvested every month, avocado and paw paw trees are plentiful within the 2 hectare plot and passion fruit vines are now entwined around the barb wire fence. Nothing is taken as fences are respected and, in any case, the students are so proud of their project that they even tend it on the weekends. Harvesting occurs monthly and the orphan students now eat well, wear shoes and proudly don school uniforms that fit.
We in the West are unlikely to make dramatic changes in our lifestyle. Most of us find it distasteful to downgrade our comfort levels. What we can perhaps do is try to be at least a little less profligate. More importantly, realize how much further a dollar goes in a place like Tanzania and consider supporting one of the many programmes that make such a difference to those that live there.
Chris Harker and his wife Catriona [chriscat@pacificcoast.net] are both retired school administrators. In addition to their volunteer work with CHES [www.canadianharambee.ca] they organize and escort safaris every year to the famous game parks of Tanzania [www.chriscatsafaris.ca].
ONLY ONE CLICK A DAY on a button at the Hunger Site » and you will freely have given someone in need a cup of food each time.
The Hunger Site was founded to focus the power of the Internet on a specific humanitarian need: the eradication of world hunger. Since its launch in June 1999 [this is its 9th Anniversary!], the site has established itself as a leader in online activism, helping to feed the world's hungry. On average, over 220,000 individuals from around the world visit the site each day to click the yellow "Click Here to Give—it's FREE" button. To date, more than 300 million visitors have given more than 573 million cups of staple food.
by David Mason, 
What we can perhaps do is try to be at least a little less profligate. More importantly, realize how much further a dollar goes in a place like Tanzania and consider supporting one of the many programmes that make such a difference to those that live there.
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