THE PARTIAL MANDATE
What is a partial mandate?
As the name suggests, a partial mandate is a mandate for clients who do not need complete integrated financial planning. How to proceed with a partial mandate For all your files you must complete the following sections:
• Professional services contract (pp.1- 3) • Data collection questionnaire (client profile) (pp.4-10) • Sections concerning the situations related to the mandate entrusted to you by your
clients (pp.11-35) For each of these situations, we have provided:
• A list of the main objectives related to the situation • A list of the main documents that may be useful • References to La Collection de l’IQPF, related to every objective, to help you
formulate your analyses and recommendations A partial mandate is a flexible tool that you can use in part or in whole, based on the needs and objectives of your client, and still provide integrated financial planning. Adapt it and customize it – it’s your personal work tool! We hope you will find it useful and that it will help you in the practice of integrated personal financial planning.
1
PROFESSIONAL SERVICES CONTRACT
City, date
Addressee
Address
Subject: Financial planning
Ref. no.: File no. ____________
Dear (Addressee),
Further to our recent meeting, we wish to offer you our services to complete an integrated personal
financial plan, establish an action plan and, if necessary, make recommendations concerning the
objectives we discussed.
We are authorized to act in the following areas: financial planning, individual insurance, group savings,
(specify disciplines). We also offer the following financial products and services: financial planning, life
and disability insurance contracts, mutual funds (specify).
For greater certainty, our services will consist of examining the following areas:
Personal and family situation
Financial situation
Tax situation
Children’s education funding situation
Retirement planning situation
Estate planning situation
Protection situation
For each of these situations, we will take the accounting and tax consequences into consideration when
formulating recommendations and analysing your current situation.
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Consideration
For the services rendered, you agree to pay us the sum of $______________ for every hour worked in
relation to this contract, which we estimate at a total of approximately __________ hours.
The appropriate taxes (GST, QST), along with any fees and expenses incurred, will be added to this price.
You agree to make an immediate down‐payment of $__________, deductible from the total sum
invoiced, the balance of which will be due 30 days after invoicing. Interest in the amount of _____% per
annum will be charged on any balance unpaid after 30 days.
This contract may be rescinded at any time. In the event the contract is rescinded, you agree to pay for
any hours worked or expenses incurred up to the date of revocation.
Charges and conditions
As your financial planners, we agree to provide you with a written report that covers all of the items
listed above, accompanied if appropriate by charts outlining our analysis and recommendations.
In particular, we will keep you informed of our progress on your file, and the final report will be
submitted to you in approximately _________________________. We will then set up a meeting to
explain the contents and recommendations. If additional work is required, you will be informed and
additional fees may be charged.
You should understand that the report may need to be updated regularly. The fees for periodically
updating the report can be the subject of a later agreement.
You agree to answer all questions asked and to provide us with all documents necessary to carry out this
contract, whether they are in your possession or in the possession of third parties. To this end, you will
immediately sign letters authorizing us to obtain information directly from third parties. The information
obtained will remain confidential at all times and will not be used for any other purposes.
You understand that our responsibility is limited by our access to the documents provided and to their
content, and that the recommendations we offer are only valid insofar as the prevailing social, family,
economic and market conditions and laws remain unchanged.
Should the implementation of any of the recommendations made in the report require the services of
specialists, our coordination and integration fees will be charged over and above their fees.
3
Sincerely,
(Signature)
Name of financial planner (BLOCK LETTERS)
Name of financial institution or firm
I, (enter the first and last name of the client), the undersigned, accept the terms of this service contract
and agree to uphold all of the conditions.
Signed in , this day of (month, year)
(Signature)
Name of client (BLOCK LETTERS)
Note: If remuneration is to be based on commissions on financial products sold, this must be clearly
indicated. In such a case, it is recommended that an alternate type of remuneration, such as an
hourly rate, be provided, in case the contract is rescinded.
4
DATA COLLECTION QUESTIONNAIRE CLIENT PROFILE
FOR YOUR PERSONAL FINANCIAL PLAN
CONFIDENTIAL
File no.:
Name of client:
Type of client:
Name of spouse:
Questionnaire completed on:
Updated on:
Planner:
5
PERSONAL INFORMATION
Residence and employment
Client Spouse
Mr. Ms. Mr. Ms.
Name: Name:
Address:
Since (date):
Date of birth: Date of birth:
SIN: SIN:
Home phone: Home phone:
Work phone: Work phone:
Cell phone: Cell phone:
Fax: Fax:
Email: Email:
employee self‐employed retired employee self‐employed retired
Name: Name:
Address: Address:
Since (date): Since (date):
Position: Position:
Job type: 1 2 3 4 Job type: 1 2 3 4
1. Permanent 2. Temporary 3. Independent 4. Not employed
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Other information
Client Spouse
smoker non‐smoker never smoked smoker non‐smoker never smoked
State of health: 1 2 3 4 State of health: 1 2 3 4
1. Excellent 2. Good 3. Acceptable 4. Poor
Details:
7
PERSONAL INFORMATION (cont’d)
Civil status
Since
(yy) (mm) (dd)
single
married place of marriage:
civil union place of union:
de facto union
widow(er)
separated
divorced
Marriage contract
partnership of acquests separation of property community of property
other specify:
Cohabitation agreement
yes no n/a
Waiver of family patrimony
yes no n/a
Will yes no
notarial holograph witnessed date: _______________
Mandate in case of incapacity yes no
notarial holograph witnessed date: _______________
8
Children
Grandchildren
Name DOB Job Annual income
Civil
status
Last
name First name DOB
1‐
2‐
3‐
9
PERSONAL BALANCE SHEET AS AT __________________________
Client Spouse Total
$ $ $
ASSETS
Cash and near‐cash assets
Bank accounts
Non‐registered investments
TFSA
Other
Personal assets
Principal residence
Secondary residence
Automobiles
Other
Registered assets
RRSP, RRIF, LIRA
HBP
Registered pension plan (RPP)
RESP
TOTAL ASSETS
LIABILITIES
Personal loans
Credit cards
Line of credit
Car
Furniture
RRSP
Other
10
Mortgage loans
Principal residence
HBP
Secondary residence
Rental property
Other
TOTAL LIABILITIES
NET WORTH
Notes:
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NAME: _______________________________________
Determination of cost of living
Year: ____________
Client Spouse Total
$ $ $
SOURCES OF INCOME
Employment income
Self‐employment or business income (net)
Rental income
Investment income
Support payments
Annuities and other pensions
Other income
TOTAL GROSS INCOME
TAXES AND CONTRIBUTIONS
QPP and CPP contributions
Employment insurance contributions
Pension plan contributions
RRSP contributions
Provincial income tax
Federal income tax
TOTAL TAXES AND CONTRIBUTIONS
12
AVAILABLE INCOME
LESS:
NON‐REGISTERED SAVINGS
CHANGE IN CASH AND DEBT1
COST OF LIVING
1 The change in debt corresponds to the change in the balance of personal loans.
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PERSONAL AND FAMILY SITUATION
OBJECTIVES
Yes No Comments
Get married or enter civil union
Get divorced
Enter de facto union relationship
End de facto union relationship
Have children
Other
DOCUMENTS
Original Copy Comments
Marriage contract
Cohabitation agreement
Other
SERVICE CONTRACT
After our meeting, we will analyse the outlined objectives and develop an action plan. If necessary, we
will formulate recommendations related to the selected objectives. Only the objectives identified above
will be analysed.
Our responsibility is limited by the documentation and information provided. Our recommendations will
be based on certain assumptions and will have to be reviewed from time to time to reflect your changing
social and family situation, changes to tax and other laws, and the fluctuations of the economy and the
financial markets over time. The fee for the present contract will be $______.
(Client’s signature) (Financial planner’s signature)
INSTITUT QUÉBÉCOIS DE PLANIFICATION FINANCIÈRE 14
POINTS OF ANALYSIS FOR THE FINANCIAL PLANNER BASED ON THE CLIENT’S OBJECTIVES
For all objectives, it is crucial to complete the Client Profile.
Objective: Get married
Steps Reference
Evaluate the effects of marriage or civil union Module 2, – Chapters 2.2 and 2.3
Analyse the various matrimonial regimes Module 2 – Chapter 2.5
Evaluate the potential effect of the partition of the family
patrimony and the matrimonial regime
Module 2 – Chapter 2.4
Evaluate the other rights arising from marriage or civil union Module 2 – Chapter 2.7
Objective: Get divorced
Steps Reference
Evaluate the effects of a divorce Module 2 – Chapter 2.9
Evaluate the potential effects of the partition of the family
patrimony and the matrimonial regime
Module 2 – Chapters 2.4.4 to 2.4.7
and 2.5
Evaluate the effects of other rights arising from marriage or
civil union
Module 2 – Chapter 2.7
Objective: Enter a de facto union
Steps Reference
Analyse the repercussions of living in a de facto union Module 2 – Chapter 2.10
Analyse the clauses to include in the cohabitation agreement Module 2 – Chapter 2.10.4
INSTITUT QUÉBÉCOIS DE PLANIFICATION FINANCIÈRE 15
Objective: End a de facto union
Steps Reference
Evaluate the effects of terminating the de facto union Module 2 – Chapter 2.10.2
Evaluate the effects of the provisions of the cohabitation
agreement
Module 2 – Chapter 2.10.4
Objective: Have children
Steps Reference
Evaluate the legal effects of becoming a parent Module 2 – Chapters 2.2, 2.7.3,
2.10.1 and 2.10.2
FINANCIAL SITUATION
OBJECTIVES
Yes No Comments
Evaluate net worth
Evaluate cost of living
Eliminate personal debts
Establish a savings strategy
Review the investment strategy
Buy a house
Other
DOCUMENTS
Original Copy Comments
Bank statements
(savings, loans, credit cards)
Investment account statements
Tax account statements
Tax returns for the last three years
Notice of assessment
Purchase or long‐term lease contracts
Employment income
SERVICE CONTRACT
After our meeting, we will analyse the outlined objectives and develop an action plan. If necessary, we
will formulate recommendations related to the selected objectives. Only the objectives identified above
will be analysed.
Our responsibility is limited by the documentation and information provided. Our recommendations will
17
be based on certain assumptions and will have to be reviewed from time to time to reflect your changing
social and family situation, changes to tax and other laws, and the fluctuations of the economy and the
financial markets over time. The fee for the present contract will be $______.
(Client’s signature) (Financial planner’s signature)
OTHER QUESTIONS
Yes No Comments
Does the client expect any major cash inflows or outflows in the
next year?
Is the client interested in borrowing to invest?
Does the client have commitments from a previous marriage or
relationship?
Has the client opened a tax‐free savings account (TFSA)?
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POINTS OF ANALYSIS FOR THE FINANCIAL PLANNER BASED ON THE CLIENT’S OBJECTIVES
For all objectives, it is crucial to complete the Client Profile.
Objective: Evaluate the cost of living
Steps Reference
Determination of cost of living Module 4, Annexe 2, Section
16.1.6, 16.1.6A, Annexe 2
Draw up a budget Module 4, Section 16.1.6A,
Annexe 2 • Does the budget situation generate savings or a deficit?
• Is there an emergency fund?
• Is the amount of the emergency fund adequate?
• Are the cash holdings adequate?
• Is the line of credit used?
Objective: Eliminate personal debts
Steps Reference
Credit management Module 4 – Chapter 17 • Does the client have loans with interest that is not tax‐
deductible?
• What are the interest rates and maturities of the various
debts contracted by the client?
• Does the current level of loans compromise the client’s
short‐, medium‐ or long‐term financial viability?
• Is debt used effectively?
• Can the debts be repaid without penalty?
Objective: Review the investment strategy
Steps Reference
Target asset allocation based on answers obtained from
investor profile questionnaire
Module 6 – Chapter 1
Determine current asset allocation • What is the rate of return generated by the RRSP and non‐
registered portfolios?
• What is the rate of return generated by the income‐
producing assets?
• Is the investment portfolio diversified?
• Is the investment portfolio structured to minimize income
taxes?
• What is the fee structure of the portfolio?
• Is the “growth” portion of the portfolio protected against a
market crash?
Module 1 – Section 5.5.2
Module 6 – Chapters 2 and 4
INSTITUT QUÉBÉCOIS DE PLANIFICATION FINANCIÈRE 20
RISK TOLERANCE QUESTIONNAIRE
Based on the work of university researcher and certified financial planner John Grable, Ph.D., and Ruth
H. Lytton, Ph.D., this survey was developed after many years of examining dozens of risk evaluation
methods and administering tests to over a thousand participants. The researchers combined the most
effective questions to create the thirteen below. The score is explained at the end of the survey.
1. In general, how would your best friend describe you as a risk taker?
a) A real gambler
b) Willing to take risks after completing adequate research
c) Cautious d) A real risk avoider
2. You are on a TV game show and can choose one of the following. Which would you take?
a) $1,000 in cash b) 50% chance at winning $5,000 c) A 25% chance at winning $10,000 d) A 5% chance at winning $100,000
3. You have just finished saving for a “once‐in‐a‐lifetime” vacation. Three weeks before you plan to
leave, you lose your job. You would:
a) Cancel the vacation
b) Take a much more modest vacation
c) Go as scheduled, reasoning that you need the time to prepare for a job search
d) Extend your vacation, because this might be your last chance to go first‐class
4. If you unexpectedly received $20,000 to invest, what would you do??
a) Deposit it in a bank account, money market account, or an insured CD?
b) Invest it in safe high‐quality bonds or bond mutual funds
c) Invest it in stocks or stock mutual funds
5. In terms of experience, how comfortable are you investing in stocks or stock mutual funds?
a) Not at all comfortable
b) Somewhat comfortable
c) Very comfortable
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6. When you think of the word “risk,” which of the following words comes to mind first?
a) Loss
b) Uncertainty
c) Opportunity
d) Thrill
7. Some experts are predicting prices of assets such as gold, jewels, collectibles, and real estate (hard
assets) to increase in value; bond prices may fall, however, experts tend to agree that government
bonds are relatively safe. Most of your investment assets are now in high interest government bonds.
What would you do?
a) Hold the bonds
b) Sell the bonds, put half the proceeds into money market accounts, and the other half into hard
assets
c) Sell the bonds and put the total proceeds into hard assets
d) Sell the bonds, put all the money into hard assets, and borrow additional money to buy more
8. Given the best and worst case returns of the four investment choices below, which would you prefer?
a) $200 gain best case; $0 gain/loss worst case b) $800 gain best case; $200 loss worst case c) $2,600 gain best case; $800 loss worst case d) $4,800 gain best case; $2,400 loss worst case
9. In addition to whatever you own, you have been given $1,000. You are now asked to choose
between:
a) A sure gain of $500
b) A 50% chance to gain $1,000 and a 50% chance to gain nothing
10. In addition to whatever you own, you have been given $2,000. You are now asked to choose between:
a) sure loss of $500
b) A 50% chance to lose $1,000 and a 50% chance to lose nothing
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11. Suppose a relative left you an inheritance of $100,000, stipulating in the will that you invest ALL the money in ONE of the following choices. Which one would you select?
a) A savings account or money market mutual fund
b) A mutual fund that owns stocks and bonds
c) A portfolio of 15 common stocks
d) Commodities like gold, silver, and oil
12. If you had to invest $20,000, which of the following investment choices would you find most
appealing?
a) 60% in low‐risk investments 30% in medium‐risk investments 10% in high‐risk investments
b) 30% in low‐risk investments 40% in medium‐risk investments 30% in high‐risk investments
c) 10% in low‐risk investments 40% in medium‐risk investments 50% in high‐risk investments
13. Your trusted friend and neighbor, an experienced geologist, is putting together a group of investors to fund an exploratory gold mining venture. The venture could pay back 50 to 100 times the investment
if successful. If the mine is a bust, the entire investment is worthless. Your friend estimates the chance
of success is only 20%. If you had the money, how much would you invest?
a) Nothing b) One month’s salary
c) Three month’s salary
d) Six month’s salary
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SCORING
1. a = 4; b = 3; c = 2; d = 1 6. a = 1; b = 2; c = 3; d = 4 10. a = 1; b = 3
2. a = 1; b = 2; c = 3; d = 4 7. a = 1; b = 2; c = 3; d = 4 11. a = 1; b = 2; c = 3; d = 4
3. a = 1; b = 2; c = 3; d = 4 8. a = 1; b = 2; c = 3; d = 4 12. a = 1; b = 2; c = 3
4. a = 1; b = 2; c = 3 9. a = 1; b = 3 13. a = 1; b = 2; c = 3; d = 4
5. a = 1; b = 2; c = 3
According to John Grable: “Average and mean scores were relatively constant over time, ranging from 25
to 27 after addition.” Even though it is not an official scoring system, it appears that the following scores
are reliable with regard to risk tolerance:
18 or less = Low
19 to 22 = Below average
23 to 28 = Average or moderate
29 to 32 = Above average
33 and over = High
Source: J.E. Grable and R. H. Lyton, “Financial Risk Tolerance Revisited: The Development of a Risk
Assessment Instrument,” (1999) 8 Financial Services Review 163. Reproduced with permission.
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For the purposes of applying John Grable’s risk tolerance measure, the following chart was developed by
the IQPF to convert the score to a target asset allocation.
Score Fixed income Growth shares
10 or under 100% 0%
11 to 15 80% 20%
16 to 18 70% 30%
19 to 22 60% 40%
23 to 28 50% 50%
29 to 32 40% 60%
33 and over 30% 70%
This conversion grid is not to establish the allocation in an investment portfolio for a specific investment
objective. Rather, it establishes the asset allocation that will determine the return to use in the
framework defined by the IQPF long‐term projection assumptions with the objective of evaluating a
client’s financial needs. Of course, a conversion grid cannot replace thorough knowledge of the client.
25
TAX SITUATION
OBJECTIVES
Yes No Comments
Reduce income taxes
Optimize after‐tax investment income
Use income splitting strategies
Evaluate compensation method
Evaluate business structure
Other
DOCUMENTS
Original Copy Comments
Tax returns for last three years
Business tax returns for last three years
Notice of assessment for client and business
Company’s financial statements
Investment statements
SERVICE CONTRACT
After our meeting, we will analyse the outlined objectives and develop an action plan. If necessary, we
will formulate recommendations related to the selected objectives. Only the objectives identified above
will be analysed.
Our responsibility is limited by the documentation and information provided. Our recommendations will
be based on certain assumptions and will have to be reviewed from time to time to reflect your changing
social and family situation, changes to tax and other laws, and the fluctuations of the economy and the
financial markets over time. The fee for the present contract will be $______.
(Client’s signature) (Financial planner’s signature)
26
OTHER QUESTIONS
Does the client have capital or non‐capital losses from prior years?
Has the client declared any taxable capital gains in the last three years?
Year:
Amount:
Has the client sold any assets since the beginning of the year? yes no
If so, the following table should be completed.
Description Year of
acquisition Quantity
Net proceeds
of disposition
Adjusted cost base
Undepreciated capital cost
Gain or loss
Recapture of depreciation
1)
2)
3)
Has the $750,000 capital gains deduction for the sale of qualifying small business shares been used? If so,
was the deduction used for qualifying farm property?
yes no What amount?
What kind of remuneration does the client receive (salary, dividends, options, premiums, retirement
benefits, etc.)?
27
POINTS OF ANALYSIS FOR THE FINANCIAL PLANNER BASED ON THE CLIENT’S OBJECTIVES
For all objectives, it is crucial to complete the Client Profile.
Objective: Reduce income taxes
Steps Reference
Check list of main tax strategies by category Module 5 – Annexe 1
Objective: Optimize after‐tax investment income
Steps Reference
Determine taxation of each type of investment Module 5 – Chapter 4
Module 6 – Chapter 4
Check features of each product (e.g., ACB, UCC, carrying
charges, etc.)
Module 5 – Chapters 4 and 7
Module 6 – Chapters 4, 4A, 4B and
4C
Choose products based on tax features (registered plan,
corporation, personal account, etc.)
Module 5 – Chapters 10 and 24
Module 6 – Chapters 4, 4A, 4B and
4C
Objective: Use income splitting strategies
Steps Reference
Examine the taxation of family members and the business
structure (corporation, trust)
Module 5 – Chapters 9, 10 and 11
Estimate tax and financial savings of setting up an income
splitting strategy (pension income splitting, dividends to adult
children directly or through a trust)
Module 5 – Chapters 9, 10 and 11
28
Objective: Evaluate compensation methods
Steps Reference
Depending on the client’s professional status (employee,
entrepreneur, partner or shareholder), evaluate current and
future methods of compensation
Module 5 – Chapters 16, 24.2 and
26
Objective: Evaluate business structure
Steps Reference
Determine current business structure Module 5 – Chapters 16 and 21
Evaluate possible changes (incorporation, creation of a holding
company or trust)
Module 5 – Chapters 16 and 21
INSTITUT QUÉBÉCOIS DE PLANIFICATION FINANCIÈRE 29
CHILDREN’S EDUCATION FUNDING SITUATION
OBJECTIVES
Yes No Comments
Help children or grandchildren pursue higher education
Other
DOCUMENTS
Original Copy Comments
RESP contract
RESP investment statements
Other
QUESTIONS
1st child 2nd child 3rd child
Name
Date of birth
Projected annual cost
Number of years of education
Accumulated RESP amount
30
SERVICE CONTRACT
After our meeting, we will analyse the outlined objectives and develop an action plan. If necessary, we
will formulate recommendations related to the selected objectives. Only the objectives identified above
will be analysed.
Our responsibility is limited by the documentation and information provided. Our recommendations will
be based on certain assumptions and will have to be reviewed from time to time to reflect your changing
social and family situation, changes to tax and other laws, and the fluctuations of the economy and the
financial markets over time. The fee for the present contract will be $______.
(Client’s signature) (Financial planner’s signature)
POINTS OF ANALYSIS FOR THE FINANCIAL PLANNER BASED ON THE CLIENT’S OBJECTIVES
For all objectives, it is crucial to complete the Client Profile.
Objective: Help children or grandchildren pursue higher education
Steps Reference
Registered education savings plan (RESP) Module 4 – Chapter 18
Canada Education Savings Grant (CESG) Module 4 – Chapter 18A.4
Quebec Education Savings Incentive (QESI) Module 4 – Chapter 18A.5
Calculate required annual savings Module 1 – Section 5.5.4
31
RETIREMENT PLANNING SITUATION
OBJECTIVES
Yes No Comments
Retire at age . Maintain a cost of living of $ , an annual
income of $ , in today’s dollars.
Evaluate RRSP, RRIF and annuity payout options.
Choose between a defined benefit pension plan or transfer to a LIRA.
Business: set up an individual pension plan.
Other
DOCUMENTS
Original Copy Comments
Annual pension plan statement of contributions
RPP option statement
QPP statement of participation
Investment statements (RRSP, TFSA, non‐registered, etc.)
Federal income tax notice of assessment
Tax returns (client and spouse)
32
SERVICE CONTRACT
After our meeting, we will analyse the outlined objectives and develop an action plan. If necessary, we
will formulate recommendations related to the selected objectives. Only the objectives identified above
will be analysed.
Our responsibility is limited by the documentation and information provided. Our recommendations will
be based on certain assumptions and will have to be reviewed from time to time to reflect your changing
social and family situation, changes to tax and other laws, and the fluctuations of the economy and the
financial markets over time. The fee for the present contract will be $______.
(Client’s signature) (Financial planner’s signature)
QUESTIONS
Client Spouse
Yes No Yes No
Does the client participate to a pension plan, registered pension plan,
group RRSP, DPSP, supplemental pension plan, stock option plan, etc.?
Does the client always contribute the annual maximum to an RRSP or
spousal RRSP?
If not, how much does the client contribute each year?
____________________________________________
When does the client make the RRSP or spousal RRSP contributions?
End of the year
Beginning of the year
Systematic savings program
33
POINTS OF ANALYSIS FOR THE FINANCIAL PLANNER BASED ON THE CLIENT’S OBJECTIVES
For all objectives, it is crucial to:
1. Complete the Client Profile 2. Determine the Investor Profile 3. Use economic and demographic assumptions based on the IQPF Projection Assumption Standards
Objective: Determine savings required or feasibility of retirement objective
Steps Reference
Determine or confirm cost of living Module 7 – Section 3.2.3
Identify sources of income • QPP
• OAS, GIS, EI
• Defined contribution pension plan
• Defined benefit pension plan
• RRSP or RRIF
• LIRA or Locked‐in RRSP or LIF
Module 7 – Section 4.2
Module 7 – Section 4.3
Module 7 – Section 5.4.4
Module 7 – Section 5.4.5
Module 7 – Chapter 6
Module 7 – Section 5.7
Determine savings required Module 1 – Annexe of Annexe 1
Objective: Evaluate RRSP, RRIF and annuity payout options
Steps Reference
Determine or confirm cost of living Module 7 – Section 3.2.3
Evaluate various payout options Module 7 – Section 6.6
Objective: Choose between a defined benefit pension plan and transfer to a LIRA
Steps Reference
Calculate or confirm the transfer value Module 4 – Chapter 12
Module 7 – Section 5.4.9
Determine level of risk tolerance Investor Profile
Analyse options Module 7 – Section 5.10.2
34
Objective: Set up an individual pension plan (IPP)
Steps Reference
Assess advantages and disadvantages of an IPP Module 7 – Section 5.14
Evaluate set‐up criteria Module 7 – Section 5.14
35
ESTATE PLANNING SITUATION
OBJECTIVES
Yes No Comments
Draw up or review the will
Minimize taxes payable on death
Determine life insurance needs
• Maintain current standard of living for heirs
• Provide additional legacies to heirs
• Arrange other legacies, such as to a foundation
Business: safeguard business continuation after death
Other ________________________________
DOCUMENTS
Original Copy Comments
Will
Marriage contract
Individual life insurance contracts
Group insurance brochure
Tax returns for last three years
Business tax returns for last three years
Financial statements of the business
Shareholders agreement
Other ________________________________
36
SERVICE CONTRACT
After our meeting, we will analyse the outlined objectives and develop an action plan. If necessary, we
will formulate recommendations related to the selected objectives. Only the objectives identified above
will be analysed.
Our responsibility is limited by the documentation and information provided. Our recommendations will
be based on certain assumptions and will have to be reviewed from time to time to reflect your changing
social and family situation, changes to tax and other laws, and the fluctuations of the economy and the
financial markets over time. The fee for the present contract will be $______.
(Client’s signature) (Financial planner’s signature)
QUESTIONS
Client Spouse
Yes No N/A Yes No N/A
Does the client have a will?
Does the client have a marriage (or civil union) contract with a
“joint and last survivor” clause?
Does the client’s will still reflect their last wishes?
Does the client want to leave a bequest to a charitable
organization?
Has the client made funeral arrangements?
At how much are the death‐related expenses estimated?
How long will the client need to provide income for the heirs?
Does the client have life insurance?
Are the client’s loans life‐insured with the lending institution?
Business
Does a corporation have insurance on the client’s life?
Has the client signed a shareholders agreement?
37
POINTS OF ANALYSIS FOR THE FINANCIAL PLANNER BASED ON THE CLIENT’S OBJECTIVES
For all objectives, it is crucial to:
• Complete the Client Profile
• Establish the Estate Balance Sheet and calculate taxes payable on death
• Establish a Statement of Cash Position the Estate and calculate taxes payable on death
• Use economic and demographic assumptions based on the IQPF Projection Assumption Standards
Objective: Draw up or revise the will
Steps Reference
Identify the legatees or legal heirs Module 2 – Chapter 4.2
Is the will structured to reduce income taxes on death and in
the years following death?
Module 5 – Chapters 14 and 15
Assess the advisability of setting up a testamentary trust Module 2 – Chapter 4.6
Are the life insurance beneficiary designations consistent with
the conditions of the will?
Module 2 – Chapter 4.3
Objective: Determine life insurance needs
Steps Reference
Assess the need to maintain the heirs’ cost of living Module 3 – Section 2.2.1
Consider the objectives of: • Maintaining capital after death
• Other legacies
Module 3 – Section 2.2.2.1
Determine life insurance needs Module 3 – Section 2.2
Determine whether current life insurance coverage suits the
client’s situation
Module 3 – Section 2.6 and
Chapter 6
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Objective: Minimize income taxes payable on death
Steps Reference
Consider the types of income Module 5 – Chapter 14.2
Consider the types of assets and tax repercussions of their
disposition
Module 5 – Chapter 14.5.2
Module 5 – Chapter 14
Other factors to consider: • Death benefit
• Medical expenses
• Charitable donations
• Unused capital gains exemption
• Deferred capital losses
• Rights or things
• Separate returns
• RRSP
• Partition of the deceased’s assets
Module 5 – Chapter 14.5.1
Module 5 – Chapter 14.5.2
Module 5 – Chapter 14.5.3
Module 5 – Chapter 14.6.1
Module 5 – Chapter 14.6.2
Module 5 – Chapter 14.6.3
Module 5 – Chapter 14.6.4
Module 5 – Chapter 14.6.5
Module 5 – Chapter 14.6.6
Objective: Safeguard business continuation after death
Steps Reference
Analyse shareholders agreement and current will Module 2 – Chapters 3.7 and 3.8
Assess need for life insurance to buy out shares Module 2 – Chapter 3.8
Module 5 – Chapters 15 and 22
Module 3 – Section 6.4
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PROTECTION SITUATION
OBJECTIVES
Yes No Comments
Draw up or review the mandate in case of incapacity
Draw up or review the general power of attorney
Review personal disability protection
Review business‐related disability protection
Review other personal illness or accident protection
Review other business‐related illness or accident
protection
Other
DOCUMENTS
Original Copy Comments
Mandate in case of incapacity
General power of attorney
Group insurance brochure
Disability insurance contract
Other illness or accident insurance contracts
SERVICE CONTRACT
After our meeting, we will analyse the outlined objectives and develop an action plan. If necessary, we
will formulate recommendations related to the selected objectives. Only the objectives identified above
will be analysed.
Our responsibility is limited by the documentation and information provided. Our recommendations will
be based on certain assumptions and will have to be reviewed from time to time to reflect your changing
social and family situation, changes to tax and other laws, and the fluctuations of the economy and the
financial markets over time. The fee for the present contract will be $______.
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(Client’s signature) (Financial planner’s signature)
QUESTIONS
Client Conjoint
Yes No N/A Yes No N/A
Does the client have a mandate in case of incapacity?
If not, whom does the client want to name as mandatary?
Does the client have a general power of attorney?
If not, whom does the client want to name as mandatary?
Does the client have a shareholder agreement?
Does the client have disability insurance?
Does the client have other illness or accident insurance
(including critical illness and long‐term care)?
Are the client’s loans insured against disability or critical illness
through the lending institution?
What are the deductibles on the house and car insurance?
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POINTS OF ANALYSIS FOR THE FINANCIAL PLANNER BASED ON THE CLIENT’S OBJECTIVES
For all objectives, it is crucial to complete the Client Profile.
Objective: Draw up or review the mandate in case of incapacity
Steps Reference
Examine the type and possible forms of the document Module 2 – Chapter 2.13.1
Determine who will be the mandatary or mandataries Module 2 – Chapter 2.13.3
Examine the various issues to include in the document Module 2 – Chapter 2.13.1
Determine the type of administration required Module 2 – Chapter 2.13.2
Examine the implementation procedures Module 2 – Chapter 2.13.4
Objective: Draw up or review the power of attorney
Steps Reference
Examiner the type and possible forms of the document Module 2 – Chapter 2.14
Determine who will be the mandatary or mandataries Module 2 – Chapter 2.13.3
Examine the limits and scope of the document compared to the
mandate in case of incapacity
Module 2 – Chapter 2.15
Determine the type of administration required Module 2 – Chapter 2.13.2
Objective: Review disability protection (personal and business)
Steps Reference
Determine disability insurance needs Module 3 – Chapter 2.1
Objective: Review illness and accident protections (personal and business)
Steps Reference
Evaluate health insurance needs Module 3 – Chapter 2.3