John, 55 and Sophie, 51 just celebrated their twelfth wedding anniversary in their home in Toronto, Ontario. For both John and Sohpie this is their second marriage. John has 2 children from his first marriage, Hannah, 21 and Zack, 15 who live with Johns ex-wife, Margaret in London, Ontario, (about 200 km away). Hannah is studying fashion at Fanshawe College in London, while Zack is in high school and spends the week with his mother and every other weekend with John and Sophie. Although Hannah is studying Fashion she has maxxed out both of her credit cards (approximately $25,000) and lives with Margaret spending every paycheque she receives. Sophie has 3 children from her previous marriage with Grant. Their childrens names are Frank, 25, Zoey, 23, and Joseph, 20. Frank is disabled, living with Sophie and John. He is currently receiving government subsidies for his disability, cerebral palsy. Frank is fully dependent on Sophie and John as he will never be able to work. Zoey is attending the University of Toronto for her dual MBA and law degree and Joseph is attending Seneca College studying to be an accountant.

John is a mechanical engineer who is a 50% owner of a fabrication plant, MovieLand, they specialise in making custom molds for movie sets. Johns partner, Bill owns the remaining 50% of the business. John focuses on the mechanics and building, Bill focuses on the front office, marketing, and sales for the company, MovieLand. MovieLand employs 15 people, 10 in the back working with John and 5 in the front end working with Bill. John and Bill have been running the company for 5 years and are contemplating the next steps in their business relationships and what agreements may be required to support that. Currently they have no agreements in place. John brings home a salary of $150,000 per year with bonuses of up to $15,000.

Sophie is a teacher for the Toronto District School Board. She makes $85,000 per year and has contributed into the teachers pension since she started teaching 28 years ago. She is hoping to retire in 4 years at age 55 to receive her full pension.

John is paying child support for both Hannah and Jack, he is not sure how much longer and hoping you can help with that. Margaret never remarried after the divorce with John and has been working as a manager at Tim Hortons.

John and Sophie have several properties. Prior to their marriage, John purchased a recreational property in Arizona for $115,000 USD it is currently worth $250,000 USD (approximately $318,000 CAD). Sophie used the proceeds of her divorce to purchase a cottage in Northern Ontario. She purchased it in 2007 for $300,000 CAD, it is now worth $850,000. Together they purchased their home in Toronto for $600,000 that is now worth $1,300,000. They have a mortgage on their Toronto home of $550,000 and have utilized a line of credit on the cottage of $250,000.

John has not updated his will since his marriage with Margaret. Sophie selected her brother who lives in Edmonton, Alberta to be her Power of Attorney for Personal Care and her sister who lives in Toronto, Ontario to be her Power of Attorney for Property.

John and his brother, James have just been appointed Power of Attorney for Property and for Personal Care for their mother who has been diagnosed with early stage alzheimers. John does not know how much this role is going to demand and is hoping you can help him with this.

John and Sophie are concerned about their disabled son and would like to ensure he will be okay should something happen to them.

John has a Term Life insurance policy for $500,000 that is coming up for renewal in 3 years that has the beneficiary of Margaret. According to the divorce, John has to maintain this policy until his children are finished either high school or post secondary education, whichever is later. John would like to keep the policy to go towards his estate plan but he is not sure if $500,000 is enough to cover his estate planning needs. Sophie has a Permanent Policy for $100,000 with a term rider of $500,000. She is unsure if this is enough coverage.

John and Sophies monthly net income is currently $19,600 before deductions (CPP, EI, Income Taxes, Pension and Group RRSP Contributions). $13,000 after deductions.

Investable Assets:

Johns Group RRSP: $700,000 (ACB $455,500) Sophies RRSP: $75,000 (ACB $57,250) Johns TFSA: $45,000 (ACB $30,500) Sophies TFSA: $25,000 (ACB $14,250) Joint Non-Registered Account: $15,000 (ACB $9,000) Sophies Pension: Monthly benefit at age 65 of $4,020

Monthly Expenses:

Property Taxes	$1,200
Water, sewer	$500
Property Ins	$400
Heat, Electricity	$1,000
Main, security	$1,000
Garden	$250
Prop Mgmt Serv.	$300
Transportation	$465
Groceries	$1,000
Clothing	$500
Gifts	$500
Charity	$700
Entertainment	$350
Travel	$500
Personal care	$300
Subscriptions (Netflix, Amazon, etc.)	$100
Communications	$300
Support for Frank	$300
TFSA Savings	$1,000
Total	$10,665
Surplus ($13000 Net)	$ 2,335

Some items you may want to address:

1) Do the clients estate/risk planning needs seem clear enough? Do you require added clarification? Do you require more information in order to know if the needs are in conflict with other objectives (if so, what)? For the presentation, if you require information, state this as you discuss goals. In general, you can assume that your client (s) have and will continue to maintain their current lifestyle.

2) Provide a list of your client (s) current financial position and his or her future income potential and identify financial obligations or objectives that might interfere or conflict with the clients estate/risk planning objectives