Frequently Asked Questions (FAQ)

What does a wealth advisor do?

 

A wealth advisor helps you manage your money and plan for your financial future. This includes creating a personalized financial plan, managing investments, advising on tax strategies, retirement planning, estate planning, and helping you make informed decisions about major financial goals like buying a home or funding education. A wealth advisor also helps you navigate financial markets, adjust your strategy as life changes, and make sure your financial decisions align with your long-term goals.

 

When is a wealth advisor worth it?

A wealth advisor is worth it when:

You have complex financial needs, such as managing investments, tax planning, and estate planning.

You’re experiencing a major life event like receiving an inheritance, selling a business, or retiring.

You want to make sure your financial decisions align with your long-term goals.

You need help managing emotions and avoiding common investment mistakes during market volatility.

You’re looking for guidance on growing and preserving wealth over time.

The value of a wealth advisor goes beyond just managing investments, it includes providing peace of mind, helping you avoid costly mistakes, and ensuring your financial plan adapts to life’s changes.

 

Are wealth advisor fees tax deductible?

In Canada, financial advisor fees for registered accounts like RRSPs (Registered Retirement Savings Plans) and TFSAs (Tax-Free Savings Accounts) are not tax deductible. However, fees for non-registered investment accounts may be tax deductible if they are charged separately (not embedded in the product). It’s always best to consult with your tax professional to confirm what applies to your specific situation.

 

Where can I find a wealth advisor?

You can find a wealth advisor through:

Referrals: asking friends, family, or other trusted professionals.

Online directories: many financial institutions and independent firms list advisors on their websites.

Direct contact: you can reach out to us directly to learn more about how we can help you achieve your financial goals; or refer you to someone who can.

 

What is the difference between a wealth advisor and a financial planner?

A wealth advisor is a broad term that includes professionals who help with investments, wealth management, and overall financial strategy. A financial planner specifically focuses on developing a comprehensive financial plan, including budgeting, saving, retirement, tax, and estate planning. We typically consult with a financial planner to deliver customized plans to our clients.

What’s the difference between a wealth advisor and a wealth manager?

A wealth advisor typically helps with a wide range of financial needs, from budgeting and saving to investing and retirement planning. A wealth manager focuses on more complex financial situations, usually for high-net-worth clients, offering services like estate planning, tax optimization, family governance, and philanthropy. Wealth managers often take a more holistic approach to managing significant assets and planning for multi-generational wealth.

 

Is wealth management different for millennials, retirees, women, athletes, etc.?

Yes, wealth management should be tailored to each client’s unique circumstances and life stage:

Millennials: Often focus on managing debt, building good financial habits, and long term investment. Wealth advisors can help establish long-term strategies and create a plan for financial independence.

Retirees: The focus shifts to preserving capital, generating income, and managing withdrawal strategies to ensure retirement funds last.

Women: Women may face unique challenges like longer life expectancy, career breaks, and wage gaps. A wealth advisor can help tailor a strategy to address these realities.

Athletes: Professional athletes often face shorter earning windows and large fluctuations in income. Specialized financial advice helps with budgeting, investing, and preserving wealth over the long term.

At Piccoli Wealth Management we start with getting to know you, so we can offer a personalized approach that ensures that your financial strategy aligns with your goals, lifestyle, and vision for the future.

 

Estate Planning Frequently Asked Questions (FAQ)

 

How does estate planning work?

Estate planning is the process of organizing your financial affairs to ensure your assets are managed and distributed according to your wishes after your death or if you become incapacitated. It involves creating legal documents like wills, trusts, and powers of attorney, assigning beneficiaries, and considering tax implications. A well-crafted estate plan helps minimize taxes, avoid probate, protect your heirs, and ensure that your financial and personal wishes are honored.

Who needs an estate plan?

Everyone can benefit from an estate plan, but it’s especially important if you:

Have children or other dependents.

Own property, investments, or a business.

Want to control how your assets are distributed.

Wish to minimize the tax burden on your heirs.

Want to appoint someone to make financial or medical decisions if you become incapacitated.

Why is an estate plan important?

An estate plan ensures that:

Your assets are distributed according to your wishes, not according to provincial laws.

Your family reduces the lengthy and costly probate process.

You minimize the tax burden on your heirs.

You appoint someone you trust to make medical and financial decisions on your behalf if you become incapacitated.

Your business and personal affairs are handled smoothly after your passing.

Without an estate plan, your assets may be tied up in court, distributed according to government formulas, and exposed to unnecessary taxes.

 

What estate planning documents will I need?

Key estate planning documents can include:

Will: Directs how your assets will be distributed and who will manage your estate.

Trust : Helps manage and protect assets, providing flexibility and potential tax benefits.

Power of Attorney (Financial): Authorizes someone to manage your financial affairs if you are unable to.

Power of Attorney (Healthcare): Authorizes someone to make medical decisions on your behalf.

Living Will: Outlines your preferences for medical care if you are unable to communicate them.

Beneficiary Designations: Ensures that life insurance policies, retirement accounts, and other assets go to the right people.

The specific documents you need will depend on your financial situation and personal goals.

 

Are estate planning fees tax deductible?

In Canada, most estate planning fees, including fees for drafting a will or setting up a trust, are not tax deductible. However, legal or accounting fees related to tax planning or investment management may be deductible in some cases. It’s best to consult with a tax professional for advice tailored to your situation.

However, it’s important to know that at Piccoli Wealth Management, estate plans are free of charge for clients in managed programs.

Where or when should I start thinking about an estate plan?

It’s never too early to start estate planning. Major life events that should prompt you to create or update your estate plan include:

Getting married or divorced.

Having children or grandchildren.

Buying or selling a business or property.

Significant changes in your financial situation.

Moving to a different province or country.

Health changes or aging.

 

What’s the difference between an estate plan and a will?

A will is a single document that specifies how your assets should be distributed after you die and who will manage your estate. An estate plan is a broader strategy that includes a will, trusts, powers of attorney, and other legal structures to protect your assets and manage your affairs during your lifetime and after your death.

A will is part of an estate plan, but an estate plan provides more comprehensive protection and control over your financial legacy.

 

Will an estate plan reduce my taxes?

Yes, a well-structured estate plan can help minimize taxes for your heirs by:

Structuring assets to avoid probate.

Setting up trusts to reduce taxable income.

Taking advantage of tax-efficient gifting strategies.

Ensuring proper beneficiary designations on registered accounts and insurance policies.

Strategic tax planning within your estate plan can preserve more of your wealth for your heirs.

 

Is estate planning different for seniors, business owners, or blended families?

Yes, estate planning should be customized to your specific circumstances:

Seniors: Focuses on protecting assets, securing income streams, and ensuring healthcare and long-term care decisions are clearly outlined.

Business owners: Business succession planning ensures a smooth transition of ownership and minimizes tax implications for heirs.

Blended families: Careful planning helps ensure assets are distributed fairly among children from different marriages and protects the surviving spouse’s financial security.

Athletes: Estate planning for athletes may involve managing large earnings during a short career, protecting assets from creditors, and setting up trusts to provide long-term financial security.

Personalized estate planning ensures that your specific goals, family dynamics, and financial situation are accounted for.

Get in touch for a free and no obligation consultation if you feel like this is the right time for you to start thinking about an estate plan.