Mark O’Farrell, BA | CFP | CLU | CHFC | TEP | CEAPresident, CICEA

Introducing

Advocis

members to

the new… The Value of a Certified Executor Advisor

Course Curriculum7 Modules

53 Chapters

1,000 Term Glossary

One Exam

All online

Time commitment: 30 hours

www.cicea.ca

www.cicea.ca

Estate Planning – what are we missing?

We may not be engaging the other half of the estate process; the executor and executrix

Would they describe you as their parent’s advisor or their own advisor?

We may be focusing solely on the professions needed by the testators, not the executors

Does your circle include realtors, funeral directors, appraisers or mortgage lenders?

We’re probably not equipped to handle many of the questions the executor may ask

Out-of-country deaths / property security / digital property / contents management

We’re not sufficiently recognizable to the executors as professionals who can help them

What would they google to find you and the services you provide?

In many cases, we’re not recognizing executors as the next group of testators and building those relationships early on

Ed Pearce, the father of bequest planned giving in Canada, would ask for donations an average of eleven times over twenty plus years before asking for a bequest

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Meet Donald Stewart…

Head of the Canadian Task Force on Financial Literacy reviews CICEA:

“The newly established Canadian Institute of Certified Executor Advisors certification program trains professionals to meet the fundamental need of a great many people: to have their estate well looked after following their death. Few individuals understand the range and complexity of the issues involved and the Institute does an excellent job of covering these in a clear and concise manner”.

Mr. Donald A. Stewart, F.I.A., F.C.I.A. Chief Executive Officer of Sun Life Financial Asia,Head of the Canadian Task Force on Financial Literacy Former President and CEO Sun Life Financial

Meet the Board…

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Average number of Canadians turning 65, each day: 1,019

Statistics Canada

Age 65 now

Age 65 in 10 years

Boomers, having affected all other industries,are now driving the estate planning industry:

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There’s a perfect storm brewing for today’s executor / executrix:

Increased complexity of assets and liabilities

New family dynamics

Instant communications and access to information

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Increased risk of personal liability for executors

New family dynamics:

The nuclear family of the past:

The extended family of today:

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Instant communications and access to information:

Communication and access to information 20 years ago:

Communication and access to information today:

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Increased complexity of assets and liabilities over the past 20 years:

There are now over 18,000 funds in Canada

Bank AccountsOn-line AccountsForeign AccountsGICsBondsAnnuitiesReal Estate U.S. PropertiesREITsMortgagesMutual FundsSegregated FundsHedge FundsExchange Traded FundsPublically Traded StocksLeveraged InvestmentsOptionsFuturesForexGold /other commodities

Note the above only considers assets www.cicea.ca

Increased complexity of financial products and acronyms:

Then: Now:

My mother had a “GIC”. My mother had a GIC... and an RRSP, TFSA, LIRA, RRIF, LRIF, P-RRIF, LIF, RDSP, RESP, DB Plan, DC Plan, IPP, IRP, DPSP, RCA, WCB, CPP, OAS, GIS…

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“There are eighteen areas with supporting case law where negligence by the executor can result in personal liability to the beneficiaries and creditors of the estate.”

Scot Dalton, President, ERAssure Executor Insurance

Increased risk of personal liability for executors:

Ontario is making changes (which other provinces may follow), to the collection of EAT, moving the responsibility for collection from Justice Ontario to the Ministry of Revenue.

The difference is audit authority, with sharp teeth, including fines from $1,000 to twice the value of the EAT payable, and/or possible incarceration.

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Unprepared Testators…

…will transfer a lot of money…

…with DIY executors…

…who are already having problems.

Estimated Canadians without an up-to-date Will: 70%

Source: Leave A Legacy, CAGP Report

Estimated assets transferring to the next generation in the next 20 years:

$1.5 Trillion

Source: STEP Canada (2011)

Percentage of the14.8 million Canadians, aged 45+, intending to appoint friends or family members as their executor:

99%

Source: Stats Canada, BMO Leger

Executors surveyed reported:

Administrative Complications: 47%Emotional Issues: 31%Legal Issues: 26%

Source: BMO Leger Poll

Surveys, statistics, and what they tell us:

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Who will they turn to for help?

Accountants

Appraisers

Auctioneers

Banks (and Agents for Executor)

Bankruptcy Trustees

Corporate Executors

Credit Unions

Financial Advisors Funeral

Directors

Lawyers

Life Insurance Brokers

Mortgage Lenders

P & C Insurance Brokers

Paralegals

Real Estate Agents

Executors

Mental Health Counsellors

Planned Giving Officers

Executors may turn to up to 17 different professions in the course of their duties:

Who will they turn to?www.cicea.ca

Consider the scope of their challenges…

Who can they trust for generalguidance?

Module 7) Benefits of the CEA Credibility Practice Benefits (Part 1) Practice Benefits (Part 2)Economic BenefitsMarketing Strategies

Meet the Curriculum…

Module  2)   Financial Considerations Company Benefits and PensionsPersonally-owned Life Insurance – Part 1Personally-owned Life Insurance – Part 2Corporate Life Insurance PoliciesRegistered Investments Non-Registered InvestmentsAnnuitiesBusiness AssetsU. S. Tax

Module  3)   Property Types of Property Ownership Valuation of Property Liquidation of Property Financial Considerations of Real Estate Valuation of Other Physical Assets Liquidation of Other Physical Assets Digital Property

Module 1)   Getting Started; Duties of an Executor / Executrix Ethics Urgent Issues Funeral Arrangements Overview of Executor Responsibilities Notifications Government Benefits

Module  5)   The Estate and Probate Types of Wills Dying Intestate Applying for Probate Charitable Giving Types of Donations Affected by Death Filing the Tax Return Filing Optional Returns Closing the Estate

Module  4)   Trusts Introduction to TrustsMore Basic Trust Concepts Introduction to Trust Tax Concepts Special Types of Trusts Uses of TrustsTrust Management Trust Restrictions and Winding up a Trust Taxation of TrustsTrust Tax StrategiesThe Economics of Trusts

Module  6)   Challenges of Estate Administration Stress Counseling Conflict Resolution Dealing with the Beneficiaries Financial Challenges Challenging the Will Insufficient Assets Executor and Estate Trustee Insurance

Glossary – More than 1,000 terms defined.

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www.cicea.ca

Benefits of being a CEA:

Though covered in detail for all professions in module 7, consider:

➢ being able to generally help executors and testators in a wider spectrum of their concerns and issues

➢ being able to present yourself using a designation which is instantly recognizable to them, identifying you as such a professional

➢ the Find A CEA Directory enables executors and other professionals to locate you by occupation / profession and by geographical region across Canada

➢ networking opportunities, both nationally and locally, through CEA Round Table Meetings and co-operative events, advertising and other initiatives

➢ ongoing access to the CEA program, which will be constantly updated

➢ ongoing access to the glossary, to easily reference terms used by colleagues

➢ use of the CICEA’s estate-focused calculators, such as probate fees, statistical mortality, income longevity, charitable tax credits, etc.

➢ a compelling new forum for promoting your business directly to the executor and testator community

www.cicea.ca

Benefits of being a CEA:

A wider referral network, byprofession…

www.cicea.ca

Benefits of being a CEA:

A wider referral network, bygeographicalregion…

Benefits of being a CEA:

Financial Advisors

Financial Advisors can add the CEA designation to differentiate themselves as those working with executors and testators, adding considerable value while retaining and building assets, expanding their client base and identifying insurance opportunities in and outside of their practice.

www.cicea.ca

Life Insurance Brokers / Agents

A significant portion of the wealth in Canada is held by people aged 65 and over, yet this demographic can be difficult to engage and hesitant to act. Their executors, on the other hand, will want to minimize estate challenges of taxation, illiquidity and inequality, and theyhave a vested interest in facilitating discussions.

Financial advisors and life insurance broker / agents should not ignore the massive transfer of wealth, estimated at 1.5 trillion dollars over the next 20 years (source: STEP Canada).

This designation provides instantly recognizable value as a professional who can help both executors and testators.

The CEA Program is Institute-Certified and FPSC-Accredited for 30 hours of continuing education. (Other professional CE accreditation is also available.)

Courses Structure: 7 Modules, 53 ChaptersGlossary, Exam

Course Hours : 30

Course Fee : $1,295*

Courses Format : 100% OnlineExam Format : 50 Multiple ChoicePassing Grade : 70%Included Attempts: 2Subsequent Attempts : $150*

Exam Results: ImmediateUse of Designation: ImmediateCE Certificate: Emailed AutomaticallyReceipt of Diploma: Within Ten Business Days

Annual Membership Fee : $195*

*All prices subject to 13% HST

CEA Program Details:

www.cicea.ca

Sample Diploma:

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www.cicea.ca

Is Certified Executor Advisor an Online Course?

Yes. The CEA program was written and designed to be presented on-line, using a

world-class educational platform similar to those used by universities. It includes

images, charts, graphs and other visuals to enhance the learning experience, and

provides easy navigation through the modules.

This allows CEA candidates to move through the material at their own pace and at

their convenience, including writing the exam whenever and from wherever they

wish!

Why aren’t there seminar sessions?

As noted above, the CEA program was designed from the outset to be an online

program and as such, it doesn’t lend itself to a classroom type environment. The

e-learning structure negates the need for travel, facilities and coordinating

schedules of the various participants.

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Can I access my CEA Course on my iPad or tablet?

Yes, certainly, but be sure to turn off your pop-up blocker such that pop-up windows

are enabled. (Also relevant for other devices such as laptops and desktops.)

Can I access the CEA Course on more than one computer or am I limited to a single

computer?

Your program can be accessed from any computer, anywhere, with your password

and log-in code.

Can I use the letters ‘CEA’ after my name when I pass the exam?

Yes, and we encourage all graduates to do so as it helps raise the awareness of the

designation and the institute while also enhancing the professionalism of your

practice or business.

When I pass, when will I be able to use the designation, establish my professional

profile in the Find A CEA Directory and receive my CEA diploma?

You can use the designation immediately. Your profile will automatically be

uploaded to the directory and you can edit it immediately thereafter. Your diploma

will be delivered within approximately ten business days of passing the exam.

Who regulates CEAs?

CEAs are regulated by the Canadian Institute of Certified Executor Advisors. With 17

member occupations / professions, there is simply no other existing regulatory body

that would be relevant for all members. CICEA provides a professional Code of

Conduct, Terms and Conditions, contact for the general public to register

compliments and complaints regarding CEAs, a review process and disciplinary

committee. CICEA meets all guidelines for being an independent institute.

www.cicea.ca

Q

www.cicea.ca

& AThank you!

Please email any questions we miss to info@cicea.ca

Mark O’Farrell, BA | CFP | CLU | CHFC | TEP | CEAPresident, CICEA

Welcome

Advocis

members to

the new…