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PROFESSIONAL SERVICE CONTRACT

City, date

Addressee

Address

Subject: Financial planning

Ref. no.: File no. ____________

Dear (Addressee),

Further to our recent meeting, we wish to offer you our services to complete an integrated personal financial plan, establish an action plan and, if necessary, make recommendations concerning the objectives we discussed.

We are authorized to act in the following areas: financial planning, individual insurance, group savings, (specify disciplines). We also offer the following financial products and services: financial planning, life and disability insurance contracts, mutual funds (specify).

For greater certainty, our services will consist of examining the following areas:

Personal and family situation

Financial situation

Tax situation

Retirement planning situation

Estate planning situation

Protection situation

For each of these situations, we will take the accounting and tax consequences into consideration when formulating recommendations and analysing your current situation.

1

10

Consideration

For the services rendered, you agree to pay us the sum of $______________ for every hour worked in relation to this contract, which we estimate at a total of approximately __________ hours.

The appropriate taxes (GST, QST), along with any fees and expenses incurred, will be added to this price.

You agree to make an immediate down-payment of $__________, deductible from the total sum invoiced, the balance of which will be due 30 days after invoicing. Interest in the amount of _____% per annum will be charged on any balance unpaid after 30 days.

This contract may be rescinded at any time. In the event the contract is rescinded, you agree to pay for any hours worked or expenses incurred up to the date of revocation.

Charges and conditions

As your financial planners, we agree to provide you with a written report that covers all of the items listed above, accompanied if appropriate by charts outlining our analysis and recommendations.

In particular, we will keep you informed of our progress on your file, and the final report will be submitted to you in approximately _________________________. We will then set up a meeting to explain the contents and recommendations. If additional work is required, you will be informed and additional fees may be charged.

You should understand that the report may need to be updated regularly. The fees for periodically updating the report can be the subject of a later agreement.

You agree to answer all questions asked and to provide us with all documents necessary to carry out this contract, whether they are in your possession or in the possession of third parties. To this end, you will immediately sign letters authorizing us to obtain information directly from third parties. The information obtained will remain confidential at all times and will not be used for any other purposes.

You understand that our responsibility is limited by our access to the documents provided and to their content, and that the recommendations we offer are only valid insofar as the prevailing social, family, economic and market conditions and laws remain unchanged.

Should the implementation of any of the recommendations made in the report require the services of specialists, our coordination and integration fees will be charged over and above their fees.

Sincerely,

(Signature)

Name of financial planner (BLOCK LETTERS)

Name of financial institution or firm

I, (enter the first and last name of the client), the undersigned, accept the terms of this service contract and agree to uphold all of the conditions.

Signed in

, this

day of

(month, year)

(Signature)

Name of client (BLOCK LETTERS)

Note:If remuneration is to be based on commissions on financial products sold, this must be clearly indicated. In such a case, it is recommended that an alternate type of remuneration, such as an hourly rate, be provided, in case the contract is rescinded.

4

data collection QUESTIONNAIRE client profile

FOR YOUR PERSONAL FINANCIAL PLAN

CONFIDENTIAL

File no.:

Name of client:

Type of client:

Name of spouse:

Questionnaire completed on:

Updated on:

Planner:

PERSONAL INFORMATION

Residence and employment

Client

Spouse

|_| Mr.

|_| Ms.

|_| Mr.

|_| Ms.

Name:

Name:

Address:

Since (date):

Date of birth:

Date of birth:

SIN:

SIN:

Home phone:

Home phone:

Work phone:

Work phone:

Cell phone:

Cell phone:

Fax:

Fax:

Email:

Email:

|_| employee |_| self-employed |_| retired

|_| employee |_| self-employed |_| retired

Name:

Name:

Address:

Address:

Since (date):

Since (date):

Position:

Position:

Job type: |_| 1 |_| 2 |_| 3 |_| 4

Job type: |_| 1 |_| 2 |_| 3 |_| 4

1. Permanent2. Temporary3. Independent4. Not employed

12

Other information

Client

Spouse

|_| smoker |_| non-smoker |_| never smoked

|_| smoker |_| non-smoker |_| never smoked

State of health: |_| 1 |_| 2 |_| 3 |_| 4

State of health: |_| 1 |_| 2 |_| 3 |_| 4

1. Excellent2. Good3. Acceptable4. Poor

Details:

PERSONAL INFORMATION (cont’d)

Civil status

Since

(yy)

(mm)

(dd)

single

married

place of marriage:

civil union

place of union:

de facto union[footnoteRef:1] [1: Also indicate legal civil status under the Civil Code of Québec.]

widow(er)

separated

divorced

Marriage contract

partnership of acquests

separation of property

community of property

other

specify:

Cohabitation agreement

yes

no

n/a

Waiver of family patrimony

yes

no

n/a

Will

yes

no

notarial

holograph

witnessed

date: _______________

Mandate in case of incapacity

yes

no

notarial

holograph

witnessed

date: _______________

Children

Grandchildren

Name

DOB

Job

Annual income

Civil status

Last name

First name

DOB

1-

2-

3-

Personal balance sheet as at __________________________

Client

Spouse

Total

$

$

$

Assets

Cash and near-cash assets

Bank accounts

Non-registered investments

TFSA

Other

Personal assets

Principal residence

Secondary residence

Automobiles

Other

Income-producing assets

Shares of a private corporation

Shares of a partnership

Rental property

Other

Registered assets

RRSP, RRIF, LIRA

HBP

Registered pension plan (RPP)

RESP or RDSP

Total assets

Liabilities

Personal loans

Credit cards

Line of credit

Car

Furniture

RRSP

Other

Mortgage loans

Principal residence

HBP

Secondary residence

Rental property

Other

Total liabilities

Net worth

Notes:

Name: _______________________________________

Determination of cost of living

Year: ____________

Client

Spouse

Total

$

$

$

Sources of income

Employment income

Self-employment or business income (net)

Rental income

Investment income

Support payments received (paid)

Annuities and other pensions

Other income

Total gross income

Taxes and contributions

QPP and CPP contributions

Employment insurance and QPIP contributions

Pension plan contributions

RRSP contributions

Provincial income tax

Federal income tax

Total Taxes and contributions

Available income

Less: Non-registered savings

Change in cash and debt[footnoteRef:2] [2: The change in debt corresponds to the change in the balance of personal loans.]

Cost of living

PERSONAL AND FAMILY SITUATION

Objectives

Yes

No

Comments

Get married or enter civil union

|_|

|_|

Get divorced

|_|

|_|

Enter de facto union relationship

|_|

|_|

End de facto union relationship

|_|

|_|

Have children

|_|

|_|

Other

|_|

|_|

Documents

Original

Copy

Comments

Marriage contract

|_|

|_|

Cohabitation agreement

|_|

|_|

Other

|_|

|_|

Service contract

After our meeting, we will analyse the outlined objectives and develop an action plan. If necessary, we will formulate recommendations related to the selected objectives. Only the objectives identified above will be analysed.

Our responsibility is limited by the documentation and information provided. Our recommendations will be based on certain assumptions and will have to be reviewed from time to time to reflect your changing social and family situation, changes to tax and other laws, and the fluctuations of the economy and the financial markets over time. The fee for the present contract will be $______.

(Client’s signature)

(Financial planner’s signature)

Points of analysis for the financial planner based on the client’s objectives

For all objectives, it is crucial to complete the Client Profile.

Objective: Get married

Steps

Reference

Evaluate the effects of marriage or civil union

Module 2, – Sections 2.2 and 2.3

Analyse the various matrimonial regimes

Module 2 – Section 2.5

Evaluate the potential effect of the partition of the family patrimony and the matrimonial regime


Evaluate the other rights arising from marriage or civil union


Objective: Get divorced

Steps

Reference

Evaluate the effects of a divorce


Evaluate the potential effects of the partition of the family patrimony and the matrimonial regime

Module 2 – Sections 2.4.4 to 2.4.7 and 2.5

Evaluate the effects of other rights arising from marriage or civil union


Objective: Enter a de facto union

Steps

Reference

Analyse the repercussions of living in a de facto union


Analyse the clauses to include in the cohabitation agreement

Module 2 – Section 2.10.4

14

Objective: End a de facto union

Steps

Reference

Evaluate the effects of terminating the de facto union


Evaluate the effects of the provisions of the cohabitation agreement


Objective: Have children

Steps

Reference

Evaluate the legal effects of becoming a parent

Module 2 – Sections 2.2, 2.7.3, 2.10.1 and 2.10.2

FINANCIAL SITUATION

Objectives

Yes

No

Comments

Evaluate net worth

|_|

|_|

Evaluate cost of living

|_|

|_|

Eliminate personal debts

|_|

|_|

Establish a savings strategy

|_|

|_|

Review the investment strategy

|_|

|_|

Help children (or grandchildren pursue higher education

|_|

|_|

Other

|_|

|_|

Documents

Original

Copy

Comments

Bank statements (savings, loans, credit cards)

|_|

|_|

Investment account statements

|_|

|_|

Tax account statements

|_|

|_|

Tax returns for the last three years

|_|

|_|

Notice of assessment

|_|

|_|

Purchase or long-term lease contracts

|_|

|_|

RESP investment statements

|_|

|_|

Service contract





Other questions

Yes

No

Comments

Does the client expect any major cash inflows or outflows in the next year?

|_|

|_|

Is the client interested in borrowing to invest?

|_|

|_|

Does the client have commitments from a previous marriage or relationship?

|_|

|_|

Has the client opened a tax-free savings account (TFSA)?

|_|

|_|



Objective: Evaluate the cost of living

Steps

Reference

Determination of cost of living

Module 4, Sections 16.1.6, 16.1.6A, Annexe 2

Draw up a budget

Module 4, Section 16.1.6A,

Annexe 2

Does the budget situation generate savings or a deficit?

Is there an emergency fund?

Is the amount of the emergency fund adequate?

Are the cash holdings adequate?

Is the line of credit used?

Objective: Eliminate personal debts

Steps

Reference

Credit management

Module 4 – Chapter 17

Does the client have loans with interest that is not tax-deductible?

What are the interest rates and maturities of the various debts contracted by the client?

Does the current level of loans compromise the client’s short-, medium- or long-term financial viability?

Is debt used effectively?

Can the debts be repaid without penalty?

18

37

Objective: Review the investment strategy

Steps

Reference

Target asset allocation based on answers obtained from investor profile questionnaire

Module 6 – Chapter 1

Determine current asset allocation

What is the rate of return generated by the RRSP and non-registered portfolios?

What is the rate of return generated by the income-producing assets?

Is the investment portfolio diversified?

Is the investment portfolio structured to minimize income taxes?

What is the fee structure of the portfolio?

Is the “growth” portion of the portfolio protected against a market crash?

Module 1 – Section 5.5.2Module 6 – Chapters 2 and 4

Risk tolerance questionnaire

Based on the work of university researcher and certified financial planner John Grable, Ph.D., and Ruth H. Lytton, Ph.D., this survey was developed after many years of examining dozens of risk evaluation methods and administering tests to over a thousand participants. The researchers combined the most effective questions to create the thirteen below. The score is explained at the end of the survey.

1. In general, how would your best friend describe you as a risk taker?

a) A real gambler

b) Willing to take risks after completing adequate research

c) Cautious

d) A real risk avoider

2. You are on a TV game show and can choose one of the following. Which would you take?

a) $1,000 in cash

b) 50% chance at winning $5,000

c) A 25% chance at winning $10,000

d) A 5% chance at winning $100,000

3. You have just finished saving for a “once-in-a-lifetime” vacation. Three weeks before you plan to leave, you lose your job. You would:

a) Cancel the vacation

b) Take a much more modest vacation

c) Go as scheduled, reasoning that you need the time to prepare for a job search

d) Extend your vacation, because this might be your last chance to go first-class

4. If you unexpectedly received $20,000 to invest, what would you do??

a) Deposit it in a bank account, money market account, or an insured CD?

b) Invest it in safe high-quality bonds or bond mutual funds

c) Invest it in stocks or stock mutual funds

5. In terms of experience, how comfortable are you investing in stocks or stock mutual funds?

a) Not at all comfortable

b) Somewhat comfortable

c) Very comfortable

6. When you think of the word “risk,” which of the following words comes to mind first?

a) Loss

b) Uncertainty

c) Opportunity

d) Thrill

7. Some experts are predicting prices of assets such as gold, jewels, collectibles, and real estate (hard assets) to increase in value; bond prices may fall, however, experts tend to agree that government bonds are relatively safe. Most of your investment assets are now in high interest government bonds. What would you do?

a) Hold the bonds

b) Sell the bonds, put half the proceeds into money market accounts, and the other half into hard assets

c) Sell the bonds and put the total proceeds into hard assets

d) Sell the bonds, put all the money into hard assets, and borrow additional money to buy more

8. Given the best and worst case returns of the four investment choices below, which would you prefer?

a) $200 gain best case; $0 gain/loss worst case

b) $800 gain best case; $200 loss worst case

c) $2,600 gain best case; $800 loss worst case

d) $4,800 gain best case; $2,400 loss worst case

9. In addition to whatever you own, you have been given $1,000. You are now asked to choose between:

a) A sure gain of $500

b) A 50% chance to gain $1,000 and a 50% chance to gain nothing

10. In addition to whatever you own, you have been given $2,000. You are now asked to choose between:

a) sure loss of $500

b) A 50% chance to lose $1,000 and a 50% chance to lose nothing

11. Suppose a relative left you an inheritance of $100,000, stipulating in the will that you invest ALL the money in ONE of the following choices. Which one would you select?

a) A savings account or money market mutual fund

b) A mutual fund that owns stocks and bonds

c) A portfolio of 15 common stocks

d) Commodities like gold, silver, and oil

12. If you had to invest $20,000, which of the following investment choices would you find most appealing?

a) 60% in low-risk investments 30% in medium-risk investments 10% in high-risk investments

b) 30% in low-risk investments 40% in medium-risk investments 30% in high-risk investments

c) 10% in low-risk investments 40% in medium-risk investments 50% in high-risk investments

13. Your trusted friend and neighbor, an experienced geologist, is putting together a group of investors to fund an exploratory gold mining venture. The venture could pay back 50 to 100 times the investment if successful. If the mine is a bust, the entire investment is worthless. Your friend estimates the chance of success is only 20%. If you had the money, how much would you invest?

a) Nothing

b) One month’s salary

c) Three month’s salary

d) Six month’s salary

SCORING

1. a = 4; b = 3; c = 2; d = 1

6. a = 1; b = 2; c = 3; d = 4

10. a = 1; b = 3

2. a = 1; b = 2; c = 3; d = 4

7. a = 1; b = 2; c = 3; d = 4

11. a = 1; b = 2; c = 3; d = 4

3. a = 1; b = 2; c = 3; d = 4

8. a = 1; b = 2; c = 3; d = 4

12. a = 1; b = 2; c = 3

4. a = 1; b = 2; c = 3

9. a = 1; b = 3

13. a = 1; b = 2; c = 3; d = 4

5. a = 1; b = 2; c = 3

According to John Grable: “Average and mean scores were relatively constant over time, ranging from 25 to 27 after addition.” Even though it is not an official scoring system, it appears that the following scores are reliable with regard to risk tolerance:

18 or less

=

Low

19 to 22

=

Below average

23 to 28

=

Average or moderate

29 to 32

=

Above average

33 and over

=

High

Source: J.E. Grable and R. H. Lyton, “Financial Risk Tolerance Revisited: The Development of a Risk Assessment Instrument,” (1999) 8 Financial Services Review 163. Reproduced with permission.

For the purposes of applying John Grable’s risk tolerance measure, the following chart was developed by the IQPF to convert the score to a target asset allocation.

Score

Fixed income

Growth shares

10 or under

100%

0%

11 to 15

80%

20%

16 to 18

70%

30%

19 to 22

60%

40%

23 to 28

50%

50%

29 to 32

40%

60%

33 and over

30%

70%

This conversion grid is not to establish the allocation in an investment portfolio for a specific investment objective. Rather, it establishes the asset allocation that will determine the return to use in the framework defined by the IQPF long-term projection assumptions with the objective of evaluating a client’s financial needs. Of course, a conversion grid cannot replace thorough knowledge of the client.

19

TAX SITUATION

Objectives

Yes

No

Comments

Reduce income taxes

|_|

|_|

Optimize after-tax investment income

|_|

|_|

Use income splitting strategies

|_|

|_|

Evaluate compensation method

|_|

|_|

Evaluate business structure

|_|

|_|

Other

|_|

|_|

Documents

Original

Copy

Comments

Tax returns for last three years

|_|

|_|

Business tax returns for last three years

|_|

|_|

Notice of assessment for client and business

|_|

|_|

Company’s financial statements

|_|

|_|

Investment statements

Service contract





Other questions

Does the client have capital or non-capital losses from prior years?

Has the client declared any taxable capital gains in the last three years?

Year:

Amount:

Has the client sold any assets since the beginning of the year?

|_| yes

|_| no

If so, the following table should be completed.

Description

Year of acquisition

Quantity

Net proceeds of disposition

Adjusted cost base

Undepreciated capital cost

Gain or loss

Recapture of depreciation

1)

2)

3)

Has the $750,000 capital gains deduction for the sale of qualifying small business shares been used? If so, was the deduction used for qualifying farm property?

|_| yes

|_| no

What amount?

What kind of remuneration does the client receive (salary, dividends, options, premiums, retirement benefits, etc.)?

Does the client own foreign property (other than personal property) with a cost exceeding $100,000?

|_| yes

|_| no

If so, has the client made the mandatory declarations every year this was the case? (federal income tax return and federal form T-1135)

|_| yes

|_| no



Objective: Optimize after-tax investment income

Steps

Reference

Determine taxation of each type of investment

Module 5 – Chapter 4Module 6 – Chapter 4

Check features of each product (e.g., ACB, UCC, carrying charges, etc.)

Module 5 – Chapters 4 and 5Module 6 – Chapters 4, 4A, 4B, 4C and 5

Choose products based on tax features (registered plan, corporation, personal account, etc.)

Module 5 – Chapters 8 and 10 Module 6 – Chapters 4, 4A, 4B and 4C

Objective: Use income splitting strategies

Steps

Reference

Examine the taxation of family members and the business structure (corporation, trust)

Module 5 – Chapters 6, 10, 11 and 12

Estimate tax and financial savings of setting up an income splitting strategy (pension income splitting, dividends to adult children directly or through a trust)

Module 5 – Chapters 14

Objective: Evaluate compensation methods

Steps

Reference

Depending on the client’s professional status (employee, entrepreneur, partner or shareholder), evaluate current and future methods of compensation

Module 5 – Chapters 3, 10 and 14.11.3

Objective: Evaluate business structure

Steps

Reference

Determine current business structure

Module 5 – Chapters 10 and 11

Evaluate possible changes (incorporation, creation of a holding company or trust)

Module 5 – Chapters 14

NPPF05 Even if it’s partial, it’s still financial planning!

23

46

Institut québécois de planification financière

RETIREMENT PLANNING SITUATION

Objectives

Yes

No

Comments

Retire at age . Maintain a cost of living of $ , an annual income of $ , in today’s dollars.

|_|

|_|

Evaluate RRSP, RRIF and annuity payout options.

|_|

|_|

Choose between a defined benefit pension plan or transfer to a LIRA.

|_|

|_|

Business: set up an individual pension plan.

|_|

|_|

Other

|_|

|_|

Documents

Original

Copy

Comments

Annual pension plan statement of contributions

|_|

|_|

RPP option statement

|_|

|_|

QPP statement of participation

|_|

|_|

Investment statements (RRSP, TFSA, non-registered, etc.)

|_|

|_|

Federal income tax notice of assessment

|_|

|_|

Tax returns (client and spouse)

|_|

|_|

Service contract





Questions

Client

Spouse

Yes

No

Yes

No

Does the client participate to a pension plan, registered pension plan, group RRSP, DPSP, supplemental pension plan, stock option plan, etc.?

|_|

|_|

|_|

|_|

Does the client always contribute the annual maximum to an RRSP or spousal RRSP?

|_|

|_|

|_|

|_|

If not, how much does the client contribute each year? ____________________________________________

When does the client make the RRSP or spousal RRSP contributions?

End of the year

|_|

|_|

Beginning of the year

|_|

|_|

Systematic savings program

|_|

|_|


For all objectives, it is crucial to:

1. Complete the Client Profile

2. Determine the Investor Profile

3. Use economic and demographic assumptions based on the IQPF Projection Assumption Standards

Objective: Determine savings required or feasibility of retirement objective

Steps

Reference

Determine or confirm cost of living


Identify sources of income

QPP

OAS, GIS, EI

Defined contribution pension plan

Defined benefit pension plan

RRSP or RRIF

LIRA or Locked-in RRSP or LIF

Module 7 – Section 4.2Module 7 – Section 4.3Module 7 – Section 5.4.4Module 7 – Section 5.4.5Module 7 – Chapter 6Module 7 – Section 5.7

Objective: Evaluate RRSP, RRIF and annuity payout options

Steps

Reference

Determine or confirm cost of living


Evaluate various payout options


Objective: Choose between a defined benefit pension plan and transfer to a LIRA

Steps

Reference

Calculate or confirm the transfer value

Module 4 – Chapter 12Module 7 – Section 5.4.9

Determine level of risk tolerance

Investor Profile

Analyse options


Objective: Set up an individual pension plan (IPP)

Steps

Reference

Assess advantages and disadvantages of an IPP


Evaluate set-up criteria


27

ESTATE PLANNING SITUATION

Objectives

Yes

No

Comments

Draw up or review the will

|_|

|_|

Minimize taxes payable on death

|_|

|_|

Determine life insurance needs

|_|

|_|

Maintain current standard of living for heirs

|_|

|_|

Provide additional legacies to heirs

|_|

|_|

Arrange other legacies, such as to a foundation

|_|

|_|

|_|

Business: safeguard business continuation after death

|_|

|_|

Other ________________________________

|_|

|_|

Documents

Original

Copy

Comments

Will

|_|

|_|

Marriage contract

|_|

|_|

Individual life insurance contracts

|_|

|_|

Group insurance brochure

|_|

|_|

Tax returns for last three years

|_|

|_|

Business tax returns for last three years

|_|

|_|

Financial statements of the business

|_|

|_|

Shareholders (partners) agreement

|_|

|_|

Other ________________________________

|_|

|_|

Service contract





Questions

Client

Spouse

Yes

No

N/A

Yes

No

N/A

Does the client have a will?

|_|

|_|

|_|

|_|

|_|

|_|

Does the client have a marriage (or civil union) contract with a “joint and last survivor” clause?

|_|

|_|

|_|

|_|

|_|

|_|

Does the client’s will still reflect their last wishes?

|_|

|_|

|_|

|_|

|_|

|_|

Does the client want to leave a bequest to a charitable organization?

|_|

|_|

|_|

|_|

|_|

|_|

Has the client made funeral arrangements?

|_|

|_|

|_|

|_|

|_|

|_|

At how much are the death-related expenses estimated?

How long will the client need to provide income for the heirs?

Is the client covered by life insurance?

|_|

|_|

|_|

|_|

|_|

|_|

Are the client’s loans life-insured with the lending institution?

|_|

|_|

|_|

|_|

|_|

|_|

Business

Does a corporation have insurance on the client’s life?

|_|

|_|

|_|

|_|

|_|

|_|

Has the client signed a shareholders (partners) agreement?

|_|

|_|

|_|

|_|

|_|

|_|


For all objectives, it is crucial to:

Complete the Client Profile

Establish the Estate Balance Sheet and calculate taxes payable on death

Establish a Statement of Cash Position the Estate and calculate taxes payable on death

Use economic and demographic assumptions based on the IQPF Projection Assumption Standards

Objective: Draw up or revise the will

Steps

Reference

Identify the legatees or legal heirs

Module 2 – Chapter 4.2

Is the will structured to reduce income taxes on death and in the years following death?

Module 5 – Chapters 9 and 14

Assess the advisability of setting up a testamentary trust


Are the life insurance beneficiary designations consistent with the conditions of the will?


Objective: Determine life insurance needs

Steps

Reference

Assess the need to maintain the heirs’ cost of living


Consider the objectives of:

Maintaining capital after death

Other legacies

Module 3 – Section 2.2.2.1

Determine life insurance needs


Determine whether current life insurance coverage suits the client’s situation

Module 3 – Section 2.6 and Chapter 6

Objective: Minimize income taxes payable on death

Steps

Reference

Consider the types of income

Module 5 – Chapter 3, 4 and 5

Consider the types of assets and tax repercussions of their disposition

Module 5 – Chapter 5 Module 5 – Chapter 9

Other factors to consider:

Death benefit

Medical expenses

Charitable donations

Unused capital gains exemption

Deferred capital losses

Rights or things

Separate returns

RRSP

Partition of the deceased’s assets

Module 5 – Chapter 6Module 5 – Section 9.2.4.1Module 5 – Section 9.2.4.2Module 5 – Section 14.15.1Module 5 – Section 9.1.1.2.1Module 5 – Section 9.1.1.2Module 5 – Section 9.2.3


Objective: Safeguard business continuation after death

Steps

Reference

Analyse shareholders agreement and current will

Module 2 – Chapters 3.7 and 3.8

Assess need for life insurance to buy out shares

Module 2 – Chapter 3.8 Module 5 – Chapters 9 and 14Module 3 – Section 6.4.2

PROTECTION SITUATION

Objectives

Yes

No

Comments

Draw up or review the mandate in case of incapacity

|_|

|_|

Draw up or review the general power of attorney

|_|

|_|

Review personal disability protection

|_|

|_|

Review business-related disability protection

|_|

|_|

Review other personal illness or accident protection

|_|

|_|

Review other business-related illness or accident protection

|_|

|_|

Other

|_|

|_|

Documents

Original

Copy

Comments

Mandate in case of incapacity (protection mandate)

|_|

|_|

General power of attorney

|_|

|_|

Group insurance brochure

|_|

|_|

Disability insurance contract

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Other illness or accident insurance contracts

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Service contract





Questions

Client

Conjoint

Yes

No

N/A

Yes

No

N/A

Does the client have a mandate in case of incapacity?

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If not, whom does the client want to name as mandatary?

Does the client have a general power of attorney?

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If not, whom does the client want to name as mandatary?

Does the client have a shareholder (partner) agreement?

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Does the client have disability insurance coverage?

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Does the client have other illness or accident insurance coverage (including critical illness and long-term care)?

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Are the client’s loans insured against disability or critical illness through the lending institution?

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What are the deductibles on the house and car insurance?



Objective: Draw up or review the mandate in case of incapacity

Steps

Reference

Examine the type and possible forms of the document

Module 2 – Chapter 2.13.1

Determine who will be the mandatary or mandataries


Examine the various issues to include in the document


Determine the type of administration required


Examine the implementation procedures


Objective: Draw up or review the power of attorney

Steps

Reference

Examiner the type and possible forms of the document


Determine who will be the mandatary or mandataries


Examine the limits and scope of the document compared to the mandate in case of incapacity


Determine the type of administration required


Objective: Review disability protection (personal and business)

Steps

Reference

Determine disability insurance needs


Objective: Review illness and accident protections (personal and business)

Steps

Reference

Evaluate health insurance needs


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