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If you have a company pension plan it
is absolutely save from creditors in a bankruptcy.
However RRSP accounts are fair game for
the government and creditors. George Hatton, a Saskatchewan CA who works
with Cartier Partners out of the CEN-TA Group office in West Vancouver, has
forwarded this message about new legislation in Saskatchewan which also has a
pretty good homestead act.
Just as Texas allowed Governor John
Connelly to keep his $3,000,000 ranch while creditors took his extra clothes
including those he had worn in the car with President J F Kennedy when he was
shot, Saskatchewan will now let you keep your RRSPs, RRIFs and DPSPs intact.
If
you are in financial trouble and have a couple of Hundred Thousand dollars in
your RRSP, it might be a good idea move to
Saskatchewan for a year.
With
his majority, Premier Campbell could put this legislation through very easily.
I encourage you all to drop the Premier a line and make the suggestion. I am
forwarding this to him and some other media and political people who were lucky
enough or unlucky enough to be in my database.
George Hatton can be reached at (604) 913-9137. Note that he is a CARTIER
Partners Representative and has some interesting ideas about RRSP accounts.
The deadline this year is March 3rd, 2003. You only have another four
days. My suggestion is to put your money into a a cash account today or
tomorrow and then sit down with a financial advisor like George Hatton or Fred
Snyder (CFUN radio every Saturday from 2 to 3 PM - 1410 on your AM dial) in May
when the heavy tax season is over and you can make an informed decision without
the pressure to make a choice now.
-----Original
Message-----
From: George Hatton [mailto:hatton@centa.com] Sent: Thursday, February 27, 2003 10:34 AM To: taxman@centa.com Subject: Fw: Creditor Protection for RRSPs Importance: High Creditor Protection for RRSPs ICAS leads the way for change
Effective March 4, 2003, legislation will come into force to exempt Saskatchewan RRSPs from seizure by creditors. The Registered Plan (Retirement Income) Exemption Act will provide creditor protection for three types of retirement funds: RRSPs, registered retirement income funds (RRIFs) and deferred profit sharing plans (DPSPs).
In 1995, the Institute of Chartered Accountants of Saskatchewan brought this issue to the attention of the government. We have been working with the government since that time to make creditor protection a reality. The seizure of RRSPs stifled small business and entrepreneurship and the Institute urged the government to take a leadership role on this issue.
Saskatchewan is the first province to enact legislation to protect registered retirement savings plans (RRSPs) and other registered funds from creditors in the event of bankruptcy. This change will provide the same level of protection from creditors for retirement savings in these registered plans as the pension plans of wage earners receive.
Currently, company pension plans are generally exempt from collection by creditors to ensure people are not left destitute in retirement due to bankruptcy. Self-employed people, however, do not usually have pension plans.
The act is based on the national bill and other provinces are expected to adopt similar legislation.
This is great news and a huge step towards protecting our members and their clients/employers from unfair liability issues! |
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