Partial Questionnaire + Objective breakdown

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Concordia University *

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308

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Finance

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Feb 20, 2024

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Professional service contract 1 City, date To Address Subject: Financial planning Ref. no.: File No.____________ Dear Mr./Ms. Client, Further to our recent interview, we wish to offer you our services to develop an integrated personal financial plan. We will also establish an action plan and, if appropriate, offer recommendations about the objectives you have discussed with us. We are authorized to act in the following fields: financial planning, individual insurance, group savings, (specify other disciplines). We also offer the following financial products and services: financial planning, life and disability insurance, mutual funds (specify). In particular, our services include an examination of the following: ❑ Personal and family situation ❑ Financial situation ❑ Tax situation ❑ Protection situation ❑ Retirement situation ❑ Situation at death For each of the areas mentioned above, we take into consideration the financial, accounting and tax consequences, both in the analysis of the current situation and in the formulation of recommendations.

Professional service contract 2 Compensation For these services, you agree to pay us the sum of ______________ dollars for every hour of work undertaken in relation to this contract, which we estimate to be approximately __________ hours. The appropriate taxes (GST, QST), along with any fees and expenses incurred, will be added to this price. You agree to make a down payment of __________ dollars, deductible from the total sum invoiced, the balance of which will be due thirty (30) days after invoicing. Interest of ________% will be levied on any amount unpaid after 30 days. The present contract may be rescinded at any time. If you rescind the contract, you agree to pay for any hours worked and any 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 the items listed below, including analysis charts and recommendations where relevant. We will inform you of the progress of our work and submit the final report to you in about _________________________. We will then invite you to a meeting at which we will explain our analysis and our recommendations. If additional work is required, you will be informed, and additional fees may be charged. You should understand that the report provided within the scope of this contract may require regular updating. The fees for periodically updating the file can be agreed on at a later date. You agree to respond to all questions and to provide the documents required for the execution of the contract, whether they are held by you or by third parties. To this end, you agree to immediately sign letters authorizing us to obtain information directly from third parties. The information obtained from these third parties will remain confidential at all times and will not be used for any other purposes. You understand that our responsibility is limited by access to the documents provided and to their content. The recommendations are based on assumptions and must be updated from time to time to take account of your social and family situation, changes in tax and other laws, as well as developments in the economy and fluctuating markets. Should the implementation of the recommendations in the report require the services of specialists, our co- ordination and integration fees will be charged over and above their fees.

Professional service contract 3 Sincerely, (Signature) Name of financial planner (BLOCK LETTERS) Name of financial institution or firm I, first and last name of client , accept the terms of the present service contract and agree to meet all the conditions outlined. Signed at , this th day of (month, year) (Signature) Client’s name ( BLOCK LETTERS) Note: If remuneration is to be based on commissions on financial products sold, this must be clearly indicated. In such a case, before the purchase of any financial products, it is recommended that an alternative type of remuneration be provided, such as an hourly rate, in case the contract is rescinded, if the financial planner wishes. Financial planners must also disclose in writing to the client any other form of compensation they will receive for the products sold or services rendered, if such is the case. The content of this contract and this note does not provide an exhaustive statement of all the obligations of the financial planner, who is responsible for ensuring that the contract concluded with the client and the presentation of the financial planner’s services comply with the r ules that govern the profession.

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Professional service contract 4 DATA COLLECTION QUESTIONNAIRE CLIENT PROFILE FOR YOUR PERSONAL FINANCIAL PLAN CONFIDENTIAL INFORMATION File no.: Client name 1: Client name 2: Client type: Questionnaire completed on: Updated: Financial planner:

Professional service contract 5 PERSONAL INFORMATION Residence and job Client 1 Client 2 Mr. Ms. Mr. Ms. Name: Name: Address: Since (date): Date and place of birth: Date and place of birth: Citizenship: Citizenship: SIN: SIN: Home phone: Home phone: Office phone: Office phone: Cell phone: Cell phone: Fax: Fax: Email: Email: employer self-employed retired employer 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. No job Other information Client 1 Client 2 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. Fair 4. Poor Details:

Professional service contract 6 PERSONAL INFORMATION (cont ’ d) Civil status since (year) (month) (day) ❑ single ❑ married place of marriage: ❑ civil union place of union: ❑ de facto union 1 ❑ widowed ❑ separated ❑ divorced Marriage or civil union contract ❑ partnership of acquests ❑ separation of property ❑ community of property ❑ other Specify: Cohabitation agreement ❑ yes ❑ no ❑ n/a Surrender of family patrimony ❑ yes ❑ no ❑ n/a Will ❑ yes ❑ no ❑ notarized ❑ holograph ❑ witnessed Date: _______________ Protection mandate ❑ yes ❑ no ❑ notarized ❑ witnessed Date: _______________ 1 Also indicate civil status under the Civil Code of Québec.

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Professional service contract 7 Children Grandchildren First name DOB Job Annual income Civil status Last name First name DOB 1- 2- 3-

Professional service contract 8 P ERSONAL B ALANCE S HEET AS AT __________________________ Client 1 Client 2 Total $ $ $ A SSETS Cash and near-cash assets Bank accounts Non-registered investments TFSA Other Personal assets Principal residence Secondary residence Cars Other Income-producing assets Ownership interest in a private corporation Ownership interest in a general partnership Rental property Other Deferred tax plans RRSP, DPSP, RRIF, VRSP, LIRA HBP Registered pension plan (RPP) RESP or RDSP Québec Pension Plan T OTAL ASSETS

Professional service contract 9 P ERSONAL B ALANCE S HEET AS AT __________________________ Client 1 Client 2 Total $ $ $ L IABILITIES Personal loans Credit cards Line of credit Car Furniture RRSP Other Mortgage loans Principal residence HBP Secondary residence Income properties Other Future income taxes T OTAL LIABILITIES N ET VALUE Notes:

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Professional service contract 10 N AME : _______________________________________ Determination of cost of living Year: ____________ Client 1 Client 2 Total $ $ $ S OURCES OF INCOME Employment income Self-employment or business income (net) Rental income Investment income Support payments received (paid) Annuities and other pensions Other income T OTAL GROSS INCOME I NCOME TAXES AND SOCIAL CHARGES QPP/CPP contributions Employment insurance and QPIP contributions Pension plan contributions RRSP contributions Provincial taxes Federal taxes T OTAL INCOME TAXES AND SOCIAL CHARGES I NCOME AVAILABLE L ESS : N ON - REGISTERED SAVINGS C HANGE IN CASH AND DEBT 2 C OST OF LIVING 2 The change in debt equals the difference in the balance of personal loans.

Professional service contract 11 PERSONAL AND FAMILY SITUATION O BJECTIVES Yes No Comments Get married or enter civil union Get divorced Live in a de facto union Separate Have children Other D OCUMENTS Original Copy Comments Marriage or civil union contract Cohabitation agreement Other S ERVICE 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)

Professional service contract 12 P OINTS 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 a marriage or civil union Module 2 – Sections 2.2 and 2.3 Analyse the various matrimonial regimes Module 2 – Section 2.5 Evaluate the potential effects of the partition of the family patrimony and the matrimonial regime Module 2 – Section 2.4 Evaluate the other rights arising from the marriage or civil union Module 2 – Section 2.7 Objective: Get divorced Steps Reference Evaluate the effects of a divorce Module 2 – Section 2.9 Evaluate the potential effects of the partition of the family patrimony and the matrimonial regime Module 2 – Sections 2.4.4 to 2.4.7 and 2.5 Evaluate the effects of the other rights arising from the marriage or civil union Module 2 – Section 2.7 Objective: Live in a de facto union Steps Reference Analyse the repercussions of living in a de facto union Module 2 – Section 2.10 Analyse the clauses to include in the cohabitation agreement Module 2 – Section 2.10.4 Objective: Separate Steps Reference Evaluate the effects of separation Module 2 – Section 2.10.2 Evaluate the effects of the provisions of the cohabitation agreement Module 2 – Section 2.10.4 Objective: Have children Steps Reference Evaluate the legal effects of becoming parents Module 2 – Sections 2.1, 2.7.3, 2.10

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Professional service contract 13 FINANCIAL SITUATION O BJECTIVES Yes No Comments Evaluate net worth Evaluate cost of living Eliminate personal debts Establish a savings strategy Review investment strategy Help children or grandchildren pursue higher education Other D OCUMENTS Original Copy Comments Bank account statements (savings, loans, credit cards) Investment account statements Tax account statements Tax returns for last three years Notices of assessment Purchase or long-term contracts RESP investment statements S ERVICE 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)

Professional service contract 14 O THER QUESTIONS Yes No Comments Are you expecting any unusual income or expenses in the next year? Are you interested in borrowing to invest? Do you have commitments arising from a previous marriage or union? Have you opened a tax-free savings account (TFSA)?

Professional service contract 15 P OINTS 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 cost of living Steps Reference Determination of cost of living Module 4 – Sections 16.1.6, 16.1.6A, Appendix 2 Draw up a budget Module 4 – Section 16.1.6A, Appendix 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? Module 1 – Chapter 4 Objective: Eliminate personal debts Steps Reference Credit management Module 4 – Chapter 17 • Are there loans with interest that is not tax-deductible? • What are the rates of interest and maturities of the various debts contracted by the client? • Could the current level of loans compromise the client’s financial viability in the short, medium or long term? • Is debt used effectively? • Could the debts be repaid without penalty? Module 1 – Chapter 4 Objective: Review investment strategy Steps Reference Target asset allocation based on answers to investor profile questionnaire Module 6 – Chapter 1 Establish the current asset allocation • What is the rate of return generated by the registered and non-registered portfolio? • 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? Module 1 – Chapter 4 Module 6 – Chapters 2 and 4

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Professional service contract 16 R ISK TOLERANCE QUESTIONNAIRE Based on the work of university researchers John Grable, Ph.D. and certified financial planner, and Ruth H. Lytton, Ph.D., this survey was developed after many years spent examining dozens of risk evaluation methods and administering tests to over a thousand participants. The researchers combined the most effective questions into the following 13. The scoring is explained at the bottom of the questionnaire. 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 or a money market account 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 6. When you think of the word “risk,” which of the following words comes to mind first? a) Losses b) Uncertainty c) Opportunity d) Thrill

Professional service contract 17 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) A sure loss of $500 b) A 50% chance to lose $1,000 and a 50% chance to lose nothing 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 neighbour, 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 months’ salary d) Six months’ salary

Professional service contract 18 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. Lytton, “Financial Risk Tolerance Revisited: The Development of a Risk Assessment Instrument,” (1999) 8 Financial Services Review 163. Reproduced with permission. For the purposes of applying John Grable’s risk tolerance meas ure, the following chart was developed by the IQPF to convert the score to a target asset allocation: Score earned Fixed income Grow securities 13 100% 0% 14 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% The purpose of this grid is not just to establish the investor profile but to offer a guide on asset allocation that will reflect the client’s risk tolerance. Remember that risk tolerance is just one factor to take into consideration in developing a target asset distribution. Financial planners should also bear in mind the client’s goals, investment horizon, investment knowledge and financial capacity to take risk.

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Professional service contract 19 TAX SITUATION O BJECTIVES Yes No Comments Reduce income taxes Optimize after-tax investment income Use income-splitting strategies Evaluate compensation method Evaluate business structure Other D OCUMENTS Original Copy Comments Tax returns for last three years Corporate tax returns for last three years Personal and corporate notices of assessment Corporate financial statements Investment statements S ERVICE 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)

Professional service contract 20 O THER QUESTIONS Does the client have capital and non-capital losses from prior years? Does the client have taxable capital gains declared in the last three years? Year: Amount: Has the client sold any property since the beginning of the year? Yes No If so, complete the following chart. Description Year of acquisition Quantity Net proceeds of disposition ACB UCC Gain or loss Recapture of depreciation 1) 2) 3) Has the capital gains deduction from the sale of qualified small business corporation shares been used? If so, was it used for qualified farming or fishing property? Yes No What amount? In what form is the client ’ s compensation (salary, dividends, options, bonuses, pension benefits, etc.)? Does the client own assets abroad (other than personal assets) with a cost exceeding $100,000? Yes No If so, has the client filed the mandatory returns for every year of this situation? (federal income tax return and federal form T-1135) Yes No

Professional service contract 21 P OINTS OF ANALYSIS FOR THE FINANCIAL PLANNER BASED ON THE CLIENT ’ S OBJECTIVES For all objectives, it is crucial to complete the Client Profile. Objective: Optimize after-tax investment income Steps Reference Understand the taxation of each investment Module 5 – Chapters 4 and 5 Check the characteristics of each investment (example: ACB, UCC, financial fees, etc.) Module 5 – Chapters 4 and 5 Module 6 – Chapters 4, 4A, 4B, 4C and 5 Select products based on their respective tax characteristics (registered plan, corporation, personal account, etc.) Module 5 – Chapters 8 and 10 Module 6 – Chapters 4, 4A, 4B and 4C Objective: Use income-splitting strategies Steps Reference Examine the taxation of the family members and the business structure (corporation, trust) Module 5 – Chapters 5, 6, 10, 11 and 12 Estimate the tax and financial savings of implementing income splitting strategies (pension income splitting, dividends to adult children directly or through the trust) Module 5 – Chapter 14 Objective: Evaluate the compensation methods Steps Reference Depending on professional status (employee, entrepreneur, partner or shareholder), evaluate the current and future compensation method Module 5 – Chapters 3, 10 and 14 Objective: Evaluate the business structure Steps Reference Understand the current business structure Module 5 – Chapters 10 and 11 Assess the value of changing it (incorporation, addition of a management corporation or trust) Module 5 – Chapter 14

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Professional service contract 22 PROTECTION SITUATION O BJECTIVES Yes No Comments Draft or update a protection mandate Draft or update a general power of attorney Review personal disability protection Review business-related disability protection Review other personal sickness or accident protections Review other business-related sickness or accident protections Other D OCUMENTS Original Copy Comments Protection mandate General power of attorney Group insurance brochure Disability insurance contract Other illness or accident insurance contracts S ERVICE 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)

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Professional service contract 23 Q UESTIONS Client 1 Spouse 2 Yes No N/A Yes No N/A Has the client drawn up a protection mandate? If not, whom does the client wish to appoint as their mandatary? Does the client have a general power of attorney? If not, whom does the client wish to appoint as their attorney in fact (mandatary)? Does the client have a s hareholders’ or partners’ agreement? Is the client covered by disability insurance protection? Is the client covered by other illness or accident insurance protection? (including critical illness and long-term care) Are the client’s loans covered by disability or critical illness insurance with the lending institution? What are the deductibles on the client’s car and home insurance policies?

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Professional service contract 24 P OINTS OF ANALYSIS FOR THE FINANCIAL PLANNER BASED ON THE CLIENT ’ S OBJECTIVES For all objectives, it is crucial to complete the Client Profile. Objective: Draft or update the protection mandate Steps Reference Examine the nature and possible forms of this document Module 2 – Section 2.13 Determine who will be the mandatary (mandataries) Examine the various issues to cover in this document Determine the type of administration required Study the enactment procedures Objective: Draft or update the general power of attorney Steps Reference Examine the nature and possible forms of this document Module 2 – Section 2.14 Determine who will be the attorney in fact (mandatary) Module 2 – Subsection 2.13.3 Examine the limits and scope of the document compared to the protection mandate Module 2 – Section 2.15 Determine the type of administration required Module 2 – Section 2.13 Objective: Review disability protection (personal and business-related) Steps Reference Determine life insurance needs Module 3 – Section 2.1 Objective: Review illness and accident insurance protection (personal and business-related) Steps Reference Evaluate health insurance needs Module 3 – Section 2.3

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Professional service contract 25 RETIREMENT SITUATION O BJECTIVES Yes No Comments Retire at age . Maintain a cost of living of , an annual income of , in today’s dollars Evaluate options for cashing out RRSPs, RRIF and annuities Choose between a defined benefit pension plan and transfer to a LIRA Business: set up an individual pension plan Other D OCUMENTS Original Copy Comments Annual pension plan statement Statement of RPP options QPP statement of participation Investment statements (RRSP, TFSA, non-registered, etc.) Federal notice of assessment Tax returns (client and spouse) S ERVICE 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)

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Professional service contract 26 Q UESTIONS Client 1 Client 2 Yes No Yes No Does the client belong to a pension plan, RPP, group RRSP, DPSP, supplement 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 per year? ___________________________________________ When does the client make the annual RRSP or spousal RRSP contribution? End of year Beginning of year Systematic savings program

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Professional service contract 27 P OINTS 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 the savings required or the feasibility of the retirement objective Steps Reference Determine or confirm the cost of living Module 7 – Subsection 3.2.3 Determine the sources of income • QPP • OAS, GIS, SPA • Defined contribution pension plan • Defined benefit pension plan • RRSP or RRIF • LIRA or locked-in RRSP or LIF Module 7 – Subsection 3.2.4 Module 7 – Subsection 4.2.3 Module 7 – Section 4.3 Module 7 – Subsection 5.4.4 Module 7 – Subsection 5.4.5 Module 7 – Chapter 6 Module 7 – Section 5.7 Objective: Evaluate disbursement solutions for the RRSP, RRIF and annuities Steps Reference Determine or confirm the cost of living Module 7 – Subsection 3.2.3 Evaluate the various forms of disbursement 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 7 – Subsection 5.4.9 Determine the degree of risk tolerance Investor profile Analyse the client’s situation to direct them to the most suitable option Module 7 – Subsection 5.10.2 Objective: Set up an individual pension plan (IPP) Steps Reference Assess the advantages and disadvantages of the IPP Module 7 – Section 5.14 Evaluate the implementation criteria Module 7 – Section 5.14

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Professional service contract 28 SITUATION AT DEATH O BJECTIVES Yes No Comments Draft or update the will Minimize taxes payable on death Determine life insurance needs • Maintain current lifestyle of heirs • Provide additional bequests to the heirs • Provide other bequests, such as to a foundation Business: Ensure continuation of the business after death Other ________________________________ D OCUMENTS Original Copy Comments Will Marriage contract Individual life insurance contracts Group insurance brochure Tax returns for last three years Corporate tax returns for last three years Financial statements of the business Shareholders’ (partners’) agreement Other ________________________________ S ERVICE 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)

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Professional service contract 29 Q UESTIONS Client 1 Client 2 Yes No N/A Yes No N/A Does the client have a will? Does the client have a marriage contract (or civil union contract) with a “last survivor” clause? Does the client’s will still reflect their last wishes? Does the client want to leave a bequest to a charity? Has the client made pre-funeral arrangements? How long does the client feel income will be required by the heirs? Is the client covered by life insurance protection? Are the client’s loans covered by life insurance with the lending institution? Business Does a corporation hold insurance on the client’s life? Does the client have a shareholders’ or partners’ agreement?

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Professional service contract 30 P OINTS OF ANALYSIS FOR THE FINANCIAL PLANNER BASED ON THE CLIENT ’ S OBJECTIVES For all items you must: • Complete the Client Profile • Develop an estate balance sheet and calculate the taxes payable on death • Determine the cash position of the estate and calculate the taxes payable on death • Make economic and demographic assumptions based on the Projection assumption standards Objective: Draft or update the will Steps Reference Identify the legatees or legal heirs Module 2 – Chapter 4.2 Is the will structured to reduce the taxes payable on death or in the years following the death? Module 5 – Chapters 9 and 14 Evaluate the advisability of setting up testamentary trusts Module 2 – Chapter 5 Do the beneficiary designations of the client’s life insurance policies and the terms of the client’s will agree? Module 2 – Section 4.3 Objective: Determine life insurance needs Steps Reference Assess the need to maintain the heirs’ cost of living Module 3 – Subsection 2.2.1 Consider the objectives of: • Maintaining capital on death • Other legacies Module 3 – Subsection 2.2.2.1 Determine life insurance needs Module 3 – Section 2.2 Determine whether the life insurance policies are well suited to the client’s situation Module 3 – Section 2.6 and Chapter 6

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Professional service contract 31 Objective: Minimize income taxes payable on death Steps Reference Consider the types of income Module 5 – Chapters 3, 4 and 5 Consider the types of assets and the tax repercussions of their disposition Module 5 – Chapter 5 Module 5 – Chapter 9 Other items to consider: • Death benefit • Medical expenses • Charitable gifts • Unused capital gains deduction • Net deferrable capital losses • Rights or things • Separate returns • RRSP • Distribution of the assets of the deceased Module 5 – Chapter 6 Module 5 – Chapter 9 Module 5 – Chapter 13 Module 5 – Subsection 14.15.1 Module 5 – Subsection 9.2.4.3 Module 5 – Subsection 9.1.1.2.1 Module 5 – Subsection 9.1.1.2 Module 5 – Subsection 9.2.3 Module 5 – Subsection 9.3.1 Objective: Ensure continuation of the business after death Steps Reference Analyse the shareholder agreement and the current will Module 2 – Sections 3.7 and 3.8 Determine the life insurance needs to redeem the shares Module 2 – Chapter 3.8 Module 5 – Chapters 5, 9 and 14 Module 3 – Chapter 6A

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Partial Questionnaire + Objective breakdown

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