After $35$ years, Lynn handed in her notice to her employer letting them know of her retirement date set for December $31,2024.$ As a busy C$-$Suite executive at one of the major banks in Quebec, she is training her successor to take over her position.

a$)$ When it comes to Lynn$$s pension, she is quite fortunate as she is part of a Defined Benefit Pension Plan $($DBPP$).$ She is however wondering what her annual pension will be based on a rate of $2\%$ that is calculated using her average best three consecutive years of income. $(1$ mark$)$

Lynn$$s salary over the last $7$ years

$2018201920202021202220232024$

$$677,000$ $$776,200$ $$679,800$ $$607,800$ $$659,150$ $$680,125$ $$700,000$

Calculate Lynn$$s annual pension: $(1$ mark$)$

b$)$ Lynn turns $65$ years old on January $1,2025.$ Based on your calculation in a$)$ regarding Lynn$$s annual pension, how much Old Age Security $($OAS$)$ would Lynn keep? Hint: The OAS clawback rate is $15\%$ and as the $2025$ numbers are not yet available, assume that for $2025,$ the maximum monthly OAS amount at age $65$ is $$715\mathrm{.}00$ with an OAS clawback threshold of $$95,274.(1$ mark$)$

Calculation: $(1$ mark$)$

c$)$ As Chief Legal Officer $($CLO$),$ Lynn brought her successor, Erik up to speed on a number of pressing and confidential issues, including the upcoming substantial lawsuit that the bank was hit with. Lynn was shocked when she found out that Erik sold his shares in the bank the next day as he knew the stock price would go down once the bank released their quarterly earnings to the public. $(1$ mark$)$

This information is considered $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ and if Erik trades based on this information, it could be considered $\_\_\_\_\_\_\_\_\_\_\_\_\_\_.(1$ mark $-\mathrm{.}5$ each$)$

d$)$ Moe is Lynn$$s husband. He has been a great support for Lynn while she moves up the ranks in her career. Moe has never worked and took care of their two children growing up and now takes care of their grandchildren. Highlight and underline the correct response.

$(1$ mark $-\mathrm{.}25$ each$)$

$$ Moe is eligible for Old Age Security $($OAS$)$ at age $65.$ True or False

$$ Moe is eligible for Quebec Pension Plan $($QPP$)$ at age $65.$ True or False

$$ Moe is eligible to contribute to a Tax$-$Free Savings Account. True or False

$$ Moe is eligible to contribute to a Registered Retirement Savings Account $($RRSP$).$

True or False

e$)$ Neither Moe nor Lynn have a Will. As their closest friend, you are concerned with their lack of estate planning. What two types of Will would you recommend that Moe and Lynn obtain and state your reason why? $(1$ mark$)$

$1.\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(\mathrm{.}25$ marks$)$

$2.\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(\mathrm{.}25$ marks$)$

Reason $(\mathrm{.}5$ marks$)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$