Net Worth Ledger

The Net Worth Ledger summarizes the assets, liabilities and estate taxes of the clients.

Assets

The assets section separates liquid assets, which are used to fund Retirement Income Needs, and fixed assets.

Liquid Assets includes:

• Retirement Investments – The total value of all client and spouse/partner’s RRSP/RRIF and Locked-In investments. Growth, deposits and withdrawals are all factored into this calculation; see the Personal Assets Ledger for details.
• Non-Registered/TFSA – The total value of all client, spouse/partner and joint Non-Registered and TFSA investments. Growth, deposits and withdrawals are all factored into this calculation; see the Personal Assets Ledger for details.
• Corporate Investments – The value of Corporate Investments & Securities. Growth, deposits and withdrawals are all factored into this calculation; see the Corporate Assets Ledger details.

Fixed Assets includes:

• Real Estate – The total value of all personal Real Estate Holdings; Principal Residence, Recreational Property and Investment Property.
• Corporate Assets – The total value of Corporate Owned Real Estate and Goodwill & Operations.
• Other Assets – The total value of all Other Assets.

Total Assets is the sum of all the liquid and fixed assets.

Life Insurance

The life insurance section separates personal and corporate policies and each section includes:

• Cash Value – The total cash value of all life insurance policies entered are displayed in this column.
• Debts – The balance of any policy loans or monthly draws are shown in this column.
• Death Benefits – The total death benefits, including the cash surrender value, of all life policies entered are shown in this column.

Liabilities

The Liabilities section shows all client and spouse/partner debts:

• Residential Mortgage – The year end value of the mortgage on the Principal Residence.
• Investments Mortgage – The year end values of the mortgage balances for both the Recreational Property and Investment Property.
• Other Debts – The year end value of Credit Cards, Personal Lines of Credits and any Other Debts.
• Lifestyle LOC – The value of any Lifestyle Line of Credit triggered due to cash flow deficiencies.
• Corporate Debt – The year end value of the mortgage on the Corporate Owned Real Estate.

Total Liabilities is the sum of the five liabilities areas mentioned above.

Equity

The Equity section of the Net Worth tab shows seven columns:

• Net Worth – Calculated as the difference between Total Assets, including cash values from life insurance policies, and Total Liabilities.
• Personal Estate Tax – The taxes that have been deferred or are payable when the assets are passed on to the estate. This value is calculated as the sum of the deferred tax columns from the Personal Assets Ledger plus the deferred tax under the equity section of the Corporate Assets Ledger.
• Corporate Deferred Taxes – The taxes that have been deferred or are payable when the assets are passed on to the estate. This value is calculated as the sum of the deferred taxes on the liquid and fixed asset on the Corporate Assets Ledger.
• Total Taxes – The sum of the personal estate taxes and the corporate deferred taxes columns.
• Insurance Personal – The amount paid from personal insurance policies upon death. This amount is calculated as the Death Benefit column minus Cash Value column.
• Insurance Corporate – The amount paid from corporate insurance upon death. This amount is calculated as the Total Corporate Death Benefit minus Total Corporate Cash Value.
• Estate Net Worth – Calculated as Net Worth less Total Taxes plus Insurance Personal and Insurance Corporate columns.