2022 February Update

We’re well into 2022, past both the solar and lunar new years, and feeling cemented in this year. We are lucky enough to have the opportunity to speak to a lot of people from all kinds of backgrounds and professions in the work that we do at Spring every day, and we’re finding a lot of commonality in one particular area. 

Change. 

Not just the relentless external changes that we face every day, the ones that have been coming at us so hot and heavy for the last few years that change is just… where we live now. This is a different kind of change.

The changes that we’re speaking to people about are actually the ones they’re creating themselves, in their lives, in their families, in their careers and their businesses. 

It may be that those external forces, the ones that have given us collective chronic stress, are what is behind all of the decisions people are making to drive their own changes. We’re pretty sure it’s something like that. The economists and historians will tell us all about it later. 

Right now, what’s exciting is that the changes we are hearing about are changes designed to get thismuch closer to joy. To the place at Spring we call: your life, well spent. 

Even if what brought us all to this point is less than wonderful, the results are amazing. People are focusing on the relationships that mean so much to them. People are taking on new approaches to lifestyle that will bring them the sense of completeness they weren’t getting before. People are talking to their kids and their grandkids about what they want, and working together as families to achieve it. People are changing careers, pivoting businesses, and exiting the workforce for good. 

The pandemic and all that has come with it has forced many people to spend time contemplating more than constant forward motion. It’s brought so many people to a place where they feel comfortable with designing the life they really want, and then using the toolkits we have around money, tax, law, investments, and communication, to make it reality. 

It just tickles us. At Spring, our purpose is to help you envision what is possible, and in using the tools of finance, create your intentional life. We’re feeling pretty useful right now. 

As you know from our January update, we’ve minimized our writing so we can focus on helping people answer those important questions and develop those intentional lives. We hope you’ll enjoy reading through our February 2021 article on the values of safety and security, and how these can be actioned in the design of your life, as well as the news digest, which includes updates for family businesses, a proposed federal foreign owned property tax, and U.S. estate and gift taxes. 

All the best for the month ahead!

Practice Notes:

We’ll be joining the world to celebrate International Women’s Day on March 8th, and Julia will be participating in a panel with the Tri-City Chamber of Commerce in Coquitlam. If you’re interested in joining us, you can register here.

Kathryn will be taking holidays between March 14-16 and March 21-30. Julia will be taking holidays March 28 through April 1. 

“Free” Fridays remain booked permanently in our calendars. These days are free to us at Spring in the sense that they are our opportunity to work on becoming better planners, whether through collaboration and discussion, education, research, or even a little down time. It’s been a regular practice since the summer of 2017, and we will continue to set aside the time to become better versions of ourselves every week. Even 1% better is solidly worth it, because we know that will be reflected in the work we do for you.

Spring in the News:

Julia joined Gena Rotstein of Karma & Cents for this “60ish seconds of Philanthropy” video, specifically discussing Philanthropy in the context of Wealth. Watch it here.

Planning News Digest:

Family Business News: New Research from the Family Enterprise Foundation provides the most comprehensive picture of transition intentions in Canadian business families to date. Download the national study here.

Proposed Federal Tax on Under Used Property: Canada’s federal government has published a draft Underused Housing Tax Act, taxing vacant homes owned by foreign individuals. The proposed tax is for 1% of the property’s value. Canadian citizens or permanent residents are exempt unless they own their interest through a partnership or a trust. All non-exempt owners of residential property must file a declaration annually. The tax will apply starting January 1, 2022, with the first declaration due April 30, 2023 (subject to parliamentary amendments). Read more here.

U.S. Estate & Gift Tax News: The current estate tax exemption for U.S. citizens is $12.06M USD per person. There is a sunset clause that returns this to its original $5M USD (indexed for inflation) as of December 31, 2025. The annual gift exemption has increased in 2022 from $15,000 USD to $16,000 USD. For U.S. persons making gifts to their non-U.S. citizen spouse, the limitation on gifts increased to $164,000 USD in 2022. Read more about the various exemptions and how the lawyers at O’Sullivan law are thinking about it here.

Feature from the Archives:

The many ways you can use cash flow strategies to put your values into action. Read more.

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