How Will You Remember Me?

Written by Paul Siluch
October 25^th, 2024

We all want to be remembered in life, and even moreso at death. Our legacy is important.

The average person is remembered for about two generations, or roughly 50 years. Beyond that, you are a genealogical footnote - a single forgotten line in the family tree. 

You only live as long as your name is spoken.

- Egyptian parable

Fifty years is roughly the span between a grandparent and a grandchild, two generational ends whose lives overlap. Relations beyond these boundaries are rare, especially with today’s children arriving later in life. And fewer of them per family.

Death is bad. But being forgotten is even worse.

Life Extension

While it may seem like a modern obsession to wish for immortality, it is not a Baby Boomer invention. The desire to be immortal appears in every era’s fables:

• Egyptian embalming ceremonies to prepare for the next life
• Immortal Greek gods
• The Spanish Fountain of Youth
• The Philosopher’s Stone.

 

One of the biggest areas attracting private funding from billionaires today is life extension (Investingnews.com):

• Sam Altman of the startup OpenAI plunked $180 million into Retro Biosciences, a company working to replace aging blood plasma with a youthful version. This was satirized in the sitcom “Silicon Valley” when tech billionaires hired young men as “blood boy” donors to stay young through frequent transfusions. There are rat studies that say this may actually help delay aging.
• Jeff Bezos of Amazon is the key figure behind one of the biggest private investments yet - $3 billion in Altos Labs. Altos aims to reprogram old cells into young ones in order to reverse cancer and age-related diseases.

In total, over $5 billion in the last two years has been pumped into companies to research extreme diets, blood replacement, hyperbaric oxygen therapy, gene editing and organ replacement (source: Vox magazine).

For now, the consensus is that we cannot reverse aging, but we can slow the rate we age. Tests are now available to compare your biological age with your chronological age, with the goal of your internal clock running at a slower pace than the calendar. Heavy drinkers and smokers have a higher biological age than chronological age, for example. To no one’s surprise.

Artificial Intelligence is speeding up research. However, it is a complex problem involving not just one “aging gene” but hundreds. It remains to be seen if we can succeed in living longer.

“I’ve called the anti-aging industry the second-oldest profession. People made the same claims 2,000 years ago about some magic elixir that’s going to make you live longer and healthier.”

- Stuart Jay Olshansky, University of Illinois, Chicago

From Beyond the Grave

No, this isn’t about Hallowe’en, which is just around the corner.

My career has now spanned almost 40 years. This means I have had the privilege of looking after many people for decades, and now their children. It also means we have had to become more familiar with what happens to your money both upon death and after death.

The truth is, most clients won’t spend all of their assets before they shuffle off this mortal coil.

But they want to know it goes where it is supposed to go. What’s the motivation?

• We want to do the best for our families.
• We want to be remembered.
• Sometimes, the job of parent or spouse doesn’t end with our death.

So how do you do this properly?

It is a big question for those of us who have assets to leave behind. Who is helped and who is hurt by your final wishes? And will your wishes even be honoured?

After death, your voice is silent.

There are three ways to “rule from beyond the grave”, so to speak. These important documents carry out your wishes when you are gone.

1. Wills carry out your wishes upon death.
2. Trusts continue your wishes for people after death.
3. Foundations continue your wishes to charities after death.

At least, you hope they carry out your wishes. Let’s have a look.

Wills

The first document everyone should update with some regularity is a Last Will and Testament. This spells out your wishes for the distribution of your final assets, money or otherwise. Hopefully, it ensures your loved ones and chosen causes benefit from your hard work.

Wills are meant to prevent disputes over who gets what, but they often do exactly the opposite. One lawyer used to say the body isn’t even cold before the fighting starts.

Wills succeed in their purpose most of the time. However, they are vulnerable to pitfalls:

• Probate: Wills must go through probate to determine if this is the final and binding will. This is a legal process that can be time-consuming and costly.
• Contests: Wills can be challenged by disgruntled heirs or other parties, potentially leading to lengthy legal battles.
• Public Record: Once probated, the contents of a will become public, which may not be ideal for those wanting to keep their affairs private.

More money means more complications. Same for more relatives.

For example, blended families may involve several wills spaced out over years, and some children (and step-children) cannot handle money. This is where your wishes need to extend beyond your day of death.

This is where Trusts come in handy.

Trusts

If the Will is the gate that allows wealth out upon death, a Trust is the corral that sets the fences around that wealth.

Specifically, trusts set the terms under which assets are distributed. These terms can be:

• Time. How many years do you want the money paid out? Often this is until a defined date like a second death or a minor becoming an adult.
• Control. Assets may need to be protected for minor children, adult children unable to manage money, or to provide income for a second spouse until death.
• Efficiency. Trusts can be set up to minimize taxes.

 Trusts also have several advantages over wills.

• Avoid Probate: Assets in a trust bypass the probate process, allowing faster distribution to beneficiaries.
• Greater Privacy: Trusts do not become part of the public record, maintaining   confidentiality of your estate.
• More Control: Trusts allow for specific conditions and terms, such as staggered distributions or incentives for beneficiaries.

Foundations

Remember we talked about leaving a legacy? Foundations do this. For those looking to create a philanthropic legacy, setting up a foundation can be a lasting way to contribute to a cause you care about.

Foundations provide ongoing support to charities, educational institutions, or other non-profit organizations, reflecting your values and priorities in perpetuity.

It is a way to donate for years after you are gone.

Death Well Planned

The key to immortality is first living a life worth remembering.

- Bruce Lee

Raymond James formed the Raymond James Trust company several years ago, then bought Solus Trust to become the largest non-bank trust company in Canada. We provide executor and trustee services and manage trusts formed upon your demise.

As mentioned, estate management has become a much larger issue for both our practice and Raymond James as a whole.

Work with your lawyer to make sure your will is up to date. Contact us if:

• You need someone to be your executor or need advice on your estate.
• Your children are your executors, but they may need help.
• You want to explore a trust, need a trust managed after you are gone, or have questions about a personal foundation.

We are afraid of dying. We make light of these fears with celebrations like Hallowe’en, but we can never truly escape them. We may find a way to live forever, but don’t count on it.

Don’t let fear or procrastination get in the way of sound estate planning.

Market Adjustments

This time of the year – the calendar year and the political year – can be rocky.

Three reasons:

1. Earnings season – Okay so far. 106 companies of 500 in the S&P 500 have reported, with the average sales beat of +1.3% and the average earnings beat of 5.9% (Bloomberg).
2. Interest rates – Positive and negative. Central banks are cutting short-term rates even as long-term rates are going up. You get less on your savings account but pay more when you renew a mortgage.
3. Politics – Positive for some stocks, negative for others. Former President Trump is pulling ahead in the polls. His tariff policies could be inflationary (pushing interest rates higher) and favour different parts of the market than Vice-President Harris’ policies would. The market is trying to adjust to this with just days left until the election.

Markets don’t really care who wins. They just want to know which way the wind is blowing. Once the election is settled, markets typically rise through to year-end in a relief rally.

Although, to be honest, everything about this year feels like uncharted territory!