F YOU HAVE an RRSP (Registered. Retire- ment Savings Plan), you would be well advised to take a precautionary step until the authorities settle one confusing issue once and for all. The confusion surrounds legally pass on your RRSP funds to a beneficiary — such as your spouse — by naming her/him as beneficiary on an RRSP form; that is, the form you complete when taking out an RRSP with a bank, trust company or whatever institution you place your RRSP funds with. If it is not legal to do so, then Revenue Canada might take a healthy slice of the funds. There are varying opinions as to the legality of naming your beneficiary on such forms. One does not wish to be morbid about the subject, but better to be safe than leave your beneficiary sorry. As a consequence, until the various authorities settle the matter, you will be well ad- vised to name in your will the beneficiary you wish to receive the funds in the event of your demise. And to be double safe this person should be the same person you have named as a beneficiary on the RRSP form. RED TAPE The ‘‘hang up’’ seems to be at the provincial govern- ment level. The B.C. branch of the Canadian Bar Associa- tion raised the matter with the provincial attorney general’s office as far back as 1982, but to date there is no indication that the matter is on the government’s agenda for action. E. Blake Bromicy, chair- man of the wills and trust sec- tion, B.C. branch of the association, explained to me that the intention of the federal government appears to be proper, in that it would allow the RRSP funds to be passed on to the bencficiary without difficulty. However, provincial legislation is ‘‘out of step’’ with federal legislation. The B.C. branch of the Canadian Bar Association has asked the provincial at- torney general to make retro- active amendments to ex- clear up the matter, said Bromley. He confirmed that in the meantime it would be ad- visable to have a clause in your will designating the beneficiary of your RRSP. e money y Bill Ryan NOT TRIVIAL The legislation in question is Section 46 of the B.C. Law and Equity Act. To the layman it is a com- plicated matter which in- volves different definitions of an ‘‘annuitant’’ by the federal and provincial governments. But, one suspects, it is nothing which could not be rapidly resolved by the AG’s staff of legal ex- perts if they had the will and the desire to do so. On the surface it may ap- pear to be a trivial matter. Not so! It could be a shock- ing experience to a spouse and/or children if, on the death of the other spouse, the tax man were totakea sizeable bite of the RRSP funds they expected to receive. Further- more, we are talking about AT NS CREDIT UNION Tax help offered THORNE RIDDELL, the largest firm of Chartered Ac countants in Canada, in assojation with the North Shore Community Credit Umon, is providing income tax preparauion services Since March 31, Thotne Riddell has provided on site personal income tax return preparabon to the North Shore Community Credit Union members at their Lonsdale branch The accounting films decision to offer Chis service tresults from othe rapid technological advances made in the past yeas in both hard ware and software for microcomputers Now, with Thorne Riddell’s resources, specially tax trained represen tatives on site at the FE onsdale branch will be equipped with a microcomputer, cnablhiag them to provide membecrs and Revenue ¢ anada with a computer produccd tax return While Thorne Riddell en sures confidéntuiahty and in dividual attention, they also guarantee that if) your per sonal tax return is assessed as Incorrect Of reassessed by Revenuc Canda because of anocreor made by them. they will, without charge, assist the Credit Union member tn what to many people is ‘‘big money.”’ While the amount of money the individual. Cana- dian has put away into an RRSP (or RRSPs) is, of course, a confidential matter, there is considerable evidence to suggest that-a-surprising— number have $50,000, and even $100,000 and more, in such plans. What is more, these individual sums_ in RRSPs_ will grow sub- stantially commencing next year if the government’s pro- posed pension plan changes come into effect. » CHANGES These changes wil! permit much larger annual contribu- tions to RRSPs. Con- sequently, individual savings will mount rapidly in future years. Taking these factors into account, the time is overdue for the provincial govern- ment to.take legislative action which will eliminate this nag- ging concern in the minds of many people. If such action is not taken, it may be that the matter will wind up in the courts. As one trust company of- ficial told me: ‘Certainly, there is the potential for this to become a court case.”’ Speaking of RRSPs, there is One situation where an in- dividual’s bad luck can be tumed into something of a bonanza by utilizing an RRSP. In these difficult economic times, many long- term employees are being laid off. Many of them, however, receive certain lump sum benefits upon leaving their employment. HEAD START Many of these benefits — including pensions — can be rolied over directly into RRSPs giving the individual a healthy head-start in building up retirement funds. Those who are able to find another job quickly, or who have savings to tide them over until they find another job, would be wise to con- sider putting these lump sums — or continuing pension payments — into an RRSP. Not only do you instantly establish a sizeable RRSP, but — through compounding —- the funds grow rapidly. making the changes A brochure describing the service includes a checkhst designed to assist the Credit Union member in assembling all the necessary information needed to complete the return in One session Thorne Riddell’s ‘‘on the spot’’ personal income tax preparation service will con tinue to be available at the North Shore Community Credit Unton’s Lonsdale branch by appointment throughout the remainder of March and Apnl Membcrs. and potential members. in terested in this service should call 986.4421 7 - Friday, March 30, 1984 - North Shore News Realtors: Can you name these six people”? Even if you haven’t met them personally, you see their pictures almost every week in the Sunday News. All of therm, and o Teal estate agents, understand the im- portance of selling themselves at the same time they advertise their listings. Our photographers are already taking pictures of your listed homes — we want to take your photograph too, and give your ad the touch of personality that can help attract readers and clients Beginning next Friday April 6th, the Friday News will be distributed free to every address in North and West Vancouver The News. will then offer total market coverage three days a week, on Sunday, Wednesday, and on your day, Friday. Realtors Bonus: On each Friday morning, we wii) deliver free copies of the Fri day News Homes Section to all North Shore real estate offices Our real estate advertisers will have thetr ads right in front of them — and available for ‘drop in’ clients as well. Friday 1s a good day for everybody -- especially North Shore realtors Call me now for the whole story about the New Friday News Tim Francis Advertising Director 980-0511 FRE YORE OF MEET TS A WHET WASIDRUVERR sunday news| north shore news