MACMILLAN ESTATE PLANNING

ASK THE EXPERT WITH SHERI MACMILLAN, CEO

MacMillan Estate Planning is a boutique estate planning firm.

For over 30 years our firm has worked with many affluent families to design their estate plans either in person or virtually. We service clients all over the world, focusing on Canada, the United States and the United Kingdom.

Our goal is that, through our planning process, we can build a Strongroom to safeguard your family’s significance. Essentially, this involves the creation of a bespoke estate plan to protect the things that you care about most. We consider your ‘significance’ to be not only the assets in your estate but also those people that mean the most to you.

We offer our clients the ability to plan their estate from a single location - everything they need to implement the design of their estate plan can be provided by one organisation which includes; lawyers, accountants, financial planners and insurance professionals. Like an architect, we work together holistically to build estate plans for domestic and international clients who often have a multitude of estate planning requirements.

Most of us are concerned about having to pay too much tax both during our lifetime and when we pass away. We sat down with CEO of MacMillan Estate Planning, Sheri MacMillan, to ask for her views on the strategies that we might consider to help us reduce our tax burden.

In answering that question, I want to start by focusing on the tax exemptions that we have available to us. A tax exempt asset is one upon which you will not pay tax both through your lifetime or when you pass away. This is different to a tax deferral, where we get a tax break in the short term, but in the long run there may be tax consequences - like your RRSP for example.

We often find that our clients are not optimizing tax exemption strategies because they are unaware of them.

Your primary home is an asset which grows in your estate tax free for the course of your lifetime. If you sell it, irrespective of any increase in value since the time of purchase, there is no tax to pay. Equally, when you pass away and the property moves through your estate it is, again, not subject to taxation.

People often find that they have more significant gains in the value of their recreational properties and wonder if they might identify them as their primary home. The answer is ‘yes’. If you have a property in B.C for example and it has greater appreciation than your home in Calgary, then we could elect that the BC property is your exempt asset and reduce the amount of tax in your estate. This is not something that you need to decide upon today. We can decide that in the year of your passing unless you sell the property during your lifetime.

Whilst it can be something of a ‘drop in the ocean’ inside sizeable estates we must endeavour to make the most of our TFSA room. Like your primary home, any growth in the value of your TFSA is also tax exempt. Tax exemption strategies can save you hundreds of thousands of dollars in tax if you take a proactive approach to planning your estate.

Beyond that there are some more bespoke strategies that allow people to tax shelter part of their estate on the basis that the value sheltered can grow tax free during their lifetime and, when they die, it can pass through their estate on a tax free basis. If there is a corporation involved we can further maximise the tax savings and reduce the amount of tax that would be paid when drawing value out of the company. Many of our clients go one step further and use this strategy to grow further wealth and reduce their income tax bill through the use of an interest deduction.

Business owners also like to use what is known as an Estate Freeze within the design of their estate which operates to ‘freeze’ the value of their business for tax purposes at a particular moment in time. This means that the tax bill is also ‘frozen’ such that the business owner is able to plan for and take steps to mitigate the tax bill during their lifetime. Any growth in the value of the business can be attributed to the next generation both as a means of (i) deferring tax into the future and (ii) allowing a family to use multiple Lifetime Capital Gain Exemptions to further mitigate the overall amount of tax paid.

In the last couple of months we have witnessed the collapse of The Silicon Valley Bank. How might this event impact upon our readers’ investment portfolios?

What happened with the Silicon Valley Bank was frightening because, for many, their first thoughts were of the banking crisis in 2008. Whilst Silicon Valley Bank was a fairly niche organisation in the banking world, this was still the second biggest banking failure in US history.

We shouldn’t forget, of course, that over in Europe we also had one of the traditional banking heavyweights, Credit Suisse, suffering some very real issues affecting their stability to the extent that their share price was slashed and they were forced into what has been described as a ‘shotgun marriage’ with UBS.

While the impact of this union remains to be seen, it could be well be significant due to their their international presence.

The extent to which these recent events in the financial world will impact your investment portfolio will depend on the geography of where you invest, the specific sectors that your investments are held in and how proactive you have been about implementing protective measures for your assets and investments.

We are always looking at ways to protect our clients’ assets in a way that makes the most sense for them, their family and their long-term goals . This type of mindset will become more pronounced during times of economic uncertainty and we are able to utilise various strategies to protect our clients’ investments both when times are good and during periods of volatility.

How would somebody best protect their assets during times of uncertainty?

Proactive planning is imperative to ensure the protection of your personal assets. This is not something that should be done as a sudden reaction to market volatility – rather a mindset that is adopted to your portfolio at all times.

From an estate planning perspective, using trusts is a great way to do this because you are essentially able to create a fence or a barrier around your assets. A trust is a legal relationship between the trustees, who manage the trust and the beneficiaries who are entitled to benefit from the assets within the trust. They can be built in several ways, and used in several ‘arenas’, to help to safeguard your estate.

Many of our clients come to MacMillan Estate Planning when they have concerns about losing their assets due to unforeseen and unpredictable economic events. In situations like the collapse of the Silicon Valley Bank, we will often recommend that our clients explore the use of trusts within their overall investment strategy. The reason for this is that these particular kinds of trusts are governed by the general principles of Trust Law as well as The Insurance Act which means that they carry less risk than more traditional investments all whilst providing several benefits that offer both protection and reassurance for the investor.

Trust Planning is, of course, not restricted just to the investment of cash assets. Trusts can be used to protect all kinds of assets – it could be real estate, company shares or life insurance value. The assets held by the trust are protected from external forces. Equally, trusts can be used as part of your estate plan during your lifetime, and then beyond, to protect family wealth as it transitions to your beneficiaries through your Will.

MacMillan Estate Planning Corp. will be hosting a complimentary Estate Planning Webinar on Thursday, Sept 13, 27, Oct 18, Nov 8, 22, Dec 6. We are also holding Seminars at the Fairmont Palliser in Calgary on Thursday Sept 27, Nov 22 to register, please visit www.macmillanestate.com or call 1-833-266-6464.

Welcome to the Strongroom, a boutique legal firm located in Calgary. Strongroom LLP provides bespoke solutions to families seeking assurance that all opportunities available are maximized to enhance and protect their legacy. Many families working with Strongroom LLP are referred to us by their accountants, lawyers, investment advisorsand other trusted professionals who understand that a traditional Will is not an estate plan for entrepreneurs and distinguished families of means.

Fair vs. equal where one or more children are not active in the family enterprise, ensuring tax efficient planning to address ever increasing taxation for business and estate assets and the protection of assets to avoid loss prior to or following the transition between generations are all concerns addressed through proper estate planning.

For a patron of Stately Magazine, intergenerational wealth is often a focus. Eliminating probate for our parents and our own estates, inheriting through trusts to protect assets for children from claims by former spouses or other creditors, are a preferred approach to estate planning.

A common concern for entrepreneurs is the disruption of the business through the imposition of two tiers of tax exceeding 60% in relation to corporate assets without advanced planning. An estate freeze and other advanced tax strategies will enhance the business by minimizing taxation.

The Strongroom LLP estate planning process involves several sessions focusing on goals, objectives and family dynamics. The integration of these elements with the legal and tax strategies available through Strongroom LLP safeguards and enhances legacy. If you do not understand, or cannot assert, that you are confident that taxes during your lifetime are minimized, that the plans for your legacy will not be frustrated, or that family harmony will not be disrupted through a lack of planning, a prolonged estate administration process, or challenges to your estate, your planning is incomplete.

Strongroom LLP offers a complimentary consultation to determine the options available to you for your planning and flat fee services for implementation of your estate and tax plan. In conjunction with its strategic partners, Strongroom LLP frequently assists families with a connection, or assets situated, in the United States and United Kingdom. Please contact Strongroom LLP at inquiry@strongroomllp.com.

Q&A WITH MARISSA DENNIS NP, CANS (CERTIFIED AESTHETIC NURSE SPECIALIST)

TELL US ABOUT YOURSELF AND YOUR BRAND. I have been passionate in the medical aesthetics industry for almost a decade now, working and training under multiple specialists and world-renowned injectors. In 2018, I started training with a nationally recognized company as well as offering private training to other practitioners in the field. Earlier this year, I officially opened Onyx Beauty Lab in Kelowna, BC with the intention of offering a personalized and holistic experience to empower our patients to reach their full life’s potential.

HOW DID YOU FARE THROUGH COVID, WAS YOUR BUSINESS AFFECTED? I opened near the end of the pandemic which was an interesting time to start a business given the economic state, however, I have no grounds for comparison to pre-pandemic. Surprisingly, the industry in this area did see an uptick in procedures. This might be attributed to the “zoom effect” where many people were staring at themselves on camera all day, and becoming more aware of looking tired, angry, or sad.

YOU HAVE A HUGE FOLLOWING ON SOCIAL MEDIA, IT HAS BECOME SUCH A HUGE PART OF MARKETING / BRAND AWARENESS, IS THIS SOMETHING THAT CAME NATURALLY TO YOU? I have been active on social media almost since I started in the industry. At that time it was a different landscape and there were not as many clinicians offering educating perspectives on the specialty. It has been interesting to watch it change and grow. In my opinion, it has become much more complex and difficult to navigate compared to what it was a few years ago and now I work with a social media company to manage the Onyx brand instagram (@onyxbeautylab.com) while I continue to manage my own (@ np.marissa.aesthetics)

WHY IS THERE STILL A BIT OF STIGMA WITH INJECTABLES AND COSMETIC CARE? Years ago, there was a significant stigma attached to injectables and aesthetic surgical procedures. In more recent times, there has definitely been a shift in the younger generations (20-45ish year olds) towards positive aging and transparency about said procedures. However, some stigma still remains. With the increase of these procedures occurring, there is an increase of undesirable outcomes or complications, and often a lot of related media coverage of injectables “gone wrong”, that feeds any negativity surrounding these procedures.

SO MANY CELEBRITIES HAVE FILLERS BUT THEY LOOK AWFUL, ARE THEY GOING TOO FAR OR ARE FILLERS NOT FOR EVERYONE? There can be multiple factors that affect the results of aesthetic treatments. There can be complications that lead to poor results, either temporarily or permanently. Patients may suffer from dysmorphic syndrome and request repeated treatments from multiple providers, each having different ideas and approaches which can lead to a “Frankenstein effect” and the results appear to be pieced together. Even if patients stay with the same clinician, they might have lost sight as to what “normal” looks like, they may have difficulty saying “no” to their patient when asked to do more, or the may overcorrect - trying to address issues such as sagging skin with more filler, when in reality - the patient requires surgery or a different intervention. Are fillers for everyone? There are definitely contraindications to having these procedures, such as pregnancy and certain medical conditions. If a patient has recently experi - enced a very traumatic situation, is suffering from dysmorphic syndromes, or has unrealistic expectations, then their clinician would likely want those issues to be addressed before proceeding with some treatments. That said, I think there are options for most people who want to undergo any aesthetic treatments whether it be hyaluronic acid fillers or bio-stimulants, or even platelet-rich plasma which uses the patient’s own blood.

WHAT IS THE IMPORTANCE OF FILLERS? ARE THEY ONLY FOR WRINKLES? Fillers can be used to replace lost volume and support tissue. As you age, you lose deep boney support, resulting in folds and sagging. Fillers can be used to restructure these areas on the face, enhance areas such as lips or cheeks in a younger patient, or even used to treat fine lines and help with skin hydration. Off-label, we have seen fillers used in other areas such as earlobes, hands, and even male enhancement.

ARE

There Mental Health Benefits

TO INJECTIONS? In more recent years, some studies have been published showing neuromodulators (such as BotoxTM) as an effective treatment for depressive disorders and useful in decreasing anxiety. Anecdotally, I have been seeing this effect on my patients for years. Interestingly, most of my male patients have specifically commented on how these treatments affect their moods. I know from personal experience that when I look better, I feel happier, my attitude is more positive, and I am kinder to myself and to others.

WHAT ARE THE BENEFITS OF ANTI-WRINKLE INJECTIONS?

Neuromodulators specifically act on muscle activity. They are used to block or weaken muscle contraction in a specific area such as between the eyebrows or on the forehead. Blocking or weakening these contractions can prevent lines in those areas from deepening, and potentially soften existing lines.

WHAT CAUSES WRINKLES? There are different factors that contribute to aging. Lifestyle factors may account for up to 80% of visible aging. Plus we are hard-wired to age in terms of genetics and there are specific physiological changes that take place as we get older. There is a loss of deep bone and fat support, laxity or stretch - ing of skin and ligaments, thinning of skin, and repeated muscular contractions and these all contribute to signs of visible aging.

OUTSIDE OF INJECTIONS AND COSMETIC CARE, WHAT CAN OUR READERS DO TO MINIMIZE THE LOOK OF AGING?

SUNSCREEN & other sun protection!! I cannot say it enough. Up to 80% of aging can be attributed to lifestyle factors, primarily UV exposure. Other factors that contribute to aging include stress levels, sleep, nutrition, hormonal changes, alcohol intake, and smoking. Generally speaking, minimizing stress, improving sleep, eating an array of vegetables and healthy fats, staying hydrated, decreasing or ceasing alcohol and smoking can all help slow down the signs of aging.

ARE THERE SYMPTOMS OF AGING SKIN OUR READERS CAN LOOK OUT FOR? What can we avoid to help slow the look of aging? As we age, skin becomes thinner and loses elasticity. We also start to see old sun damage come out in the form of hyperpigmentation (brown spots) or redness. You can avoid UV exposure by wearing an SPF of at least 30, reapplying throughout the day (every 2 hours if outside), wearing clothing that protects you from the sun, and seeking shade. Avoiding or minimizing smoking, vaping, alcohol, and processed foods can also help.

DO MEN OR WOMEN AGE BETTER? Naturally, men age better. The reason for this is that men have facial hair, so the skin of their face is naturally thicker to support the hair follicles. Thinning skin plays a role in visible aging. This is the reason that women tend to get “smokers lines” or vertical lip lines around their mouth while men do not.

WHAT ARE THE BEST PRODUCTS FOR AGING SKIN? The 3 key products that I advise for almost all of my patients include SPF (minimum 30) to be worn daily and reapplied throughout the day, an antioxidant such as Vitamin C every morning to help protect the skin from pollutants and free radicals, and a retinol/retinoid or equivalent to help with cell turnover. Peptides and growth factors are a nice bonus to promote repair and enhance collagen production. Cleansing the skin properly before application is important to ensure products penetrate into the skin, and using a gentle physical exfoliant 1-2 days a week is beneficial. Always discuss options with your provider if you are pregnant, breastfeeding, or trying to conceive.

Thank you so much for taking the time to chat with us Marissa. For more information on Marissa’s practice or updates on social media follow at @np.marissa. aesthetics