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Steve Dafoe is a financial planner with Mutual Life and Mutual Investco of Canada. He is qualified by degrees in finance, econoniics and politi- » cal science. Dafoe was appoint- ed to service the Terrace Bay- Schreiber communities. He believes the information provided in these articles is an integral part of money manage- ment and he hopes that it will provide what he believes is an important service to people in Our area. If you have any questions or would like to write concerning these articles, please contact the News at 825-3747 or write to the News, P.O. Box.579, Terrace Bay, POT 2WO. Steve Dafoe Insure your child now A change to the Income Tax Act in 1982 may help you in your insurance program. You can now buy a life insurance poli- cy on a child and later assign the ownership to the child with no tax consequences. Prior to the change, if a life insurance policy was transferred to a child, the transfer would trigger tax if the policy had a tax- able gain. If the policy had been in force for some years, then the trans- fer could be expensive. The legislation has been amended to permit the transfer of a life insurance policy (not an annuity) from the policy holder to the policyholder's child, for no consid- , eration. The transfer can be made on a tax free basis. This means the policy will be transferred at the cost basis of the owner and taxa- tion will only arise when the new owner disposes of the policy. The transfer will be permitted where a child of the policy- holder or 2 child of the spouse, is the person whose life is insured in the policy. There is, however, one tax warning which should be noted. If you transfer property to a minor, then any income from the prop- erty will be attributed te you while the child is a minor. As a consequence, if a life insurance policy were assigned to a minor and surrendered while the child was a minor, then any gain in the policy would be attributed to the assignor. However, if the child had attained age 18 at the time of the surrender, then any gain in the policy would be reported to the child. It would appear the revised legislation presents insurance planning opportunities. You could purchase a life insurance policy on your child at a young age and transfer the ownership when the child is mature. The policy could then remain in force and the child would have the advantage of the low premiums associated with purchasing the insurance at a young age. _ Alternatively, the policy could be cashed in with the proceeds used for education for other worthwhile purposes and the tax- able gain would be reported to the child. The child would be responsible for the tax, likely at a lower rate than if it had been reported to vou. NOTICE REMINDER Members of Royal Canadian Legion Terrace Bay Branch 223 who have not yet paid their 1987 dues are strongly urged to do so before December 1987. If these dues are not paid, you will have to re- apply for membership. Terrace Bay Bakery We now have cake deco- Terrace Bay-Schreiber News, Wednesday, November 25, 1987, page 5 "T too have flown hundreds of miles over our forests, and have worked in them;I couldn't agree more..." from page 4 none and no one. Only a year and-a-half ago, K- C put a scare into the minds of residents in five interdependent communities; Terrace Bay, Longlac, Geraldton, Nakina, and Aroland. Today, the Terrace Bay mill is running fine thanks to the strong leadership of Jack Lavallet. But the company had to make changes in the woodlands opera- tions to cut costs. Those effects have been felt in varying degrees from high to low by Nakina, Aroland, Longlac, and Geraldton. The people in these towns cut and deliver the wood the mill consumes. Past-reeve Ollie Chapman was UNITED UATTED UNITED Division Bay City Moving = and on) Storage, Call THUNDER BAY 1-800-465-3955 DOWN THE CHIMNEY SPECIALS PETE'S CHIMNEY SWEEP = PoL Bake ESTIMATES _ CALL PETE at 825-9330 HAPPY 40th Birthday, Phil! quoted on the front page article of your Nov. 4 issue as saying what she saw of cut-over areas on a recent helicopter ride as "makes you sick", I too have flown hundreds of miles over our forests, and have worked in them; I couldn't agree more. K-C laid off hundreds of work- ers in the woodlands, sawmill, and mill operations over the last 18 months- high costs. Nakina was the home of K-C's Exton operations. They are shut down because the biggest portion of K-C's management limits are too far from "home"- wood deliv- ery from there costs too much. It can take 10 years before the effects of intensive economic diversification will be felt in a community after initiatives are started. The day is gone where depen- dence on one industry can be jus- tified. It is up to the community's leaders to effect change for the future. Today it may all be hard to understand, but tomorrow it will be too late. Doug Brydges development commissioner Geraldton. & TERRACE BAY OFFICE Simcoe Plaza 825-9379 or 9395 Monday to Friday 10:00 a.m. to 5:30 p.m. LAW OFFICES OF EDWIN W. (TED) PAGET BARRISTER & SOLICITOR located at SCHREIBER OFFICE 302 Scotia, 2nd Floor 824-3122 Every Tuesday 10:00 to 4:30 p.m. Pre Porthis DRYCLEANING SERVICES Plain Dresses Comforters Sleeping Bags INEW AGENT In Terrace Bay | Lower level in the 'Post Office Specials Promotions For FOR Nov. 23" to Dec. 5th Sweaters & Blankets 5.79 5.79 6.59 3.19 Travel Rest Trailer Park Schreiber SEWING NOOK 825-9555 824-2617 Terrace Bay 25-3268 D&H ISLAND VIEW SERVICE CENTRE OIL CHANGE SPECIAL $19.95 + Tax (for most cars) TUNE UP SPECIAL $46.95 + Tax 4Cyl. $52.95 + Tax 6 Cyl. $59.95 + Tax V6or V8 0. (all parts are extra) includes: «check & install plugs 'adjust timing, belts & carburator «check distributor cap, cooling system, hoses, spark plug wires PCV valve and air & fuel filters BOTH OFFERS ARE VALID UNTIL NOV. 30TH, 1987 includes: rating. Place your orders for Christmas. Deadline is December 15, 87. 4 litres of oil, grease, oil filter, and a 19 pt. check