A WOMAN came up to me the other day and said: “I've been geiting more involved in the family’s finances — and was shocked to find our debts are uninsured.’’ husband had = borrowed some money ‘“‘but | thoughi the bank manayer would have automatically pointed out the need for insurance on Ute loan. fn fact, he hadn't even discussed what would happen if my husband died.” This woman's conmmrents prompt me to ask you: Hf you (or the principa! wage-carner) died today, what would happen to your debts? I don’t suggest you rush out to buy life insurance to cover all your depts. Perhaps there are other fairly liquid assets that could be cashed. if you have a mortgage on reve- nue property, perhaps the rental income covers the payment and the debt will cause no financial problem. When you are dealing with in- vestment, remember also to look * at possible income tax liabilities. Her Let’s say a husband dies. He has mortgaged rental property which can pass without income tax consequences to his widow. A deemed disposition of the proper- ty takes place at his death, but because of his special spousal rollover rule, income tax can be deferred. The rent continues to pay the mortgage. But then the wife dies. This time, the deemed disposition could result in a hefty income tax bill. With a mortgage already on the property, the executor will have to use other assets to pay the tax. Nickael Grenby DOLLARS AND SENSE Otherwise, the have to be sold. You never want to be forced to sell an investment to pay taxes or to repay a loan. Instead of prop- erty, let’s say the husband had a portfolio of growth (rather than income) stocks he had bought with an investment loan. When he dies, his widow might not want or be able to make the loan payments (there would be no income from the stocks to make the payments), Bur if the market were down, she might be forced to sell the stocks at a loss. Hf other funds were available to repay the loan, then she could hang on to the stocks until a better time. To have more contro! over debts: property might NEWS photo Stuart Davis LOCAL FIREFIGHTERS push to reach the finish line in the hose ree! race at the 1991 Annual Hose Reel Festival heid last week in Maton Park. A huge crowd enjoyed the competitions, parade and live entertainment. THE CORPGRATION OF THE DISTRICT OF NORTH VANCOUVER NOTICE OF MEETING The North Shore Advisory Commission on Disability Issues will be holding a pubdlic meeting in recognition of National Access Awareness Week. Thursday, May 23, 1991 at 5:00 p.m. Municipal Hall 355 West Queens Road, North Vancouver Guest Speaker: Michae! Carlaton, Executive Director, of the Premier" Agvi sory Council ter Persons with Disabilities The new wheeichar Hittequipped bus will be avaiable for a demonstration. All interested persons are welcome {to atienc. ake an inventory of your debts now dept oot (and your (1) Write down every more than SS000 vou spouses partner) have. (2) Next to each debt, write what would happen after death = — “heep™ or “payoff. (3) Next to each ‘theep,”” write dows the source of the required monthly payments -- or a ques- tion mark if you don’t know how you (the survivor) would make the paymenis. And next fo each ‘pay off’ write down where the money would come from. (4) Circle or highlight any ques- ton marks, (5) Next to each question mark, write dawn what you will do to to our members. institution. LEGAL FEE PACKAGE Gulf and Fraser is offering a residential mortgage “Legal Fee Packuge” exclusive & NO TRANSFER FER Gulf and Fraser has a “No Transfer Fee” policy for transferring your residential mortgage to Gulf and Fraser Fisherinen’s Credit Union from any other financial fH PRE-PAYMENT © LEXIBILITY We make it possible to pay off your mert- age sooner and save you thousands of ollars. Weekly, bi-weekly along with i MORTGAGE PROTECTION semi-monthly and monthly payment 1 schedules are avnilable to you. FIRST MORTGAGES” * Rates are subject to change without notice Gulf and Fraser Fishermen's Credit Union Wednesday. May 22. 1991 - North Shore News - sorrect the sittation —- Yom you will contact and by when. Many fenders actively: promore lite insurance on their loans ‘al- though we do not offer insurance on investment mortgages.” said Barbara Reynolds, a Royal Bank Mortgage centre minager. Always compare the cost af mortgage or ather loan insurance offered by the lender with buying coverage separately, Be sure to do this if you expect ro pay off your debt faster than the original amortization period — or you might find you are pay- ing for coverage you can never collect. WELCOME TO OUR HOME NO MATTER WHAT YOUR OCCUPATION IS... | RESIDENTIAL MORTGAGE SALE CLOSED MORTGAGE Gulf and Fraser Fishermen’s Credit Union offers flexible residential mortgage packages... Call or come in and see us if you're... * Shopping for a New Mortgage * Facing a Mortgage Renewal * Looking at Re-Financing an Existing Mortgage ] 14.25% pe ee Steveston Branch — Vancouver Branch « Head Office Julisna Yung, Mer. — Les Welton, Mgr. LS. iLen) Gatto Hit Chatham St. 805 Last Hastings St. Chief Executive Officer Richmond Veacouver 2nd Fir, 803 E. Hastings 271-591 231-9811 St, Vancouver 254-7270 54 “We originally fook out a 25. qear, $142,000 mortgave when we bought our home in PYs8."" said Mateolm Barnes, 47. sales maniag- er fora chemical firm. "We also took out the mortgage insurance." By making extra payments, the mortgage now is dawn to $88,000 “and we hope to have it paid off in another five to seven vers? Barnes said. “But what annoys us is that we are still paying for life insurance coverage based on the original 25-year amortization period: yet if one of us dies, only the remain- ing, much smaller balance will be paid of f."" Over 50 Years of Service — nearly 12,000 Members. $180 million in Assets. % ONE YEAR 20/20 PLAN Our closed residential mortgages also include our 20/20 PLAN. On any one year anniversary date Gulf and Fraser allows you to increase your payment up to 20% and/or pay an additional amount of princi- pal not exceeding 20% of the original amount of the mortgage. Flexibility is what Gulf and Fraser is about. PRE-APPROVED MORTGAGES Before you goa house shopping visit Gulf and Fraser and have your mortgage pre- approved at no cost to you for this service. INSURANCE We offer a 5-year guaranteed renewahle term for mortgages. With level coverage to age 55, low group premiums and non- smoker discounts Gulf and Fraser can off- er the protection you need. - Just call, we'll be glad to answer all your questions and design a mortgage package to suit your needs. Become A Member of Gulf & Fraser And See The Difference!