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Home  Estate Planning Why Plan?

Most of us don’t wake up thinking about doing estate planning, but it is really just one part of financial planning that just happens to grow in importance the older we get. The fact is if you work hard to accumulate assets, and if they end up being more than what you can spend during your lifetime then by definition you will leave an estate. Estate planning is making sure that those assets go to who you want them to in the most efficient way so that the value is maximized. Ask yourself whether the Canada Revenue Agency is the best beneficiary you can think of for your estate, and the answer will be why you need to do estate planning.

Why Plan?

The answer to the question why plan your estate might be answered by sharing a true story.

Bubble Bursts for Chewing Gum Magnate

William Wrigley Jr. came to Chicago in the spring of 1891 with $32 in his pocket. He was 29 years old and was a born salesman. He started off selling soap and as an extra incentive for merchants to carry his soap he offered baking powder for free. The baking powder proved to be more popular than the soap. One day he came across the idea of offering chewing gum with each can of baking powder. As they say the rest is history after Wrigley made a fortune selling chewing gum. In 1920 Wrigley ended up buying the rest of what became the crown jewel in his organization, the Chicago Cubs and Wrigley Field, from Charles Weeghman. When Wrigley died in 1932 it ended up in his son Philip’s hands, with the instructions to never sell the Cubs or Wrigley Field. Unfortunately, with Philip’s son William III now at the helm of the company, Philip and his wife Helen both died in 1977. The resulting estate tax bill was estimated at between $40 and $50 million. That bill forced William to sell their prized possessions the Cubs and Wrigley Field for $20.5 million, ending 60 years of Cubs history for the Wrigley family. It has been estimated that the tax bill was at least double what might have been the case with proper planning. With that proper planning the club might still be in the hands of the Wrigley family, and with it the most iconic stadium in baseball. By the way, in March of 2012 Forbes magazine pegged the worth of the Chicago Cubs at $879 million...

Pic of Wrigley Field - Home of the Chicago Cubs

 

 

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