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My hubby dies in 2020. What happens?

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Let's say you have run the two spouse, "everyone lives to a ripe old age, (dies in the same year) " scenario.

Set aside the reports for John and Mary (say John makes it to 98, Mary 95) Now, look at John's retirement projection and pick the year of his premature demise... let's say it is in 2020.

Now take a note of three numbers...

1. Mary's net income (2nd result column) in the years prior to 2020. (let's say it was $12,345)

2. John's RSP in 2020 (say it was 100K), and....

3. John's nonreg in 2020. (say it was $50K)

(OK.... if John has some DCG in 2020, you will have to note the value -txble & nontxble- of his DCG in 2020 as well.)

Now do the following.... remember, John is no longer in the picture.... we are working with just Mary's file!

Enter the $12345 in Mary's first column from now down to 2020, leaving the rest empty.

Drop the single value 100K in Mary's 'spousal rollover' column at year 2020 and the $50K in her 'non taxable deposit' column. (Add any life insurance proceeds to the $50K, and drop in what you expect any pension or CPP survivor benefits might be, of course)

Amortize and you are done. Mary's new plan should parallel the original plan in the years prior to 2020, but after 2020, the plan will show what would happen should John die and his capital, life insurance benefits, etc come to her.

(BTW, this might be a preferable way to demonstrate the survivor scenario than creating the 'survivor file')


New.... a method of displaying a full
(now to death of last spouse) plan showing both spouses and summary report. click here

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