Canada’s Would-Be Astronauts: What Financial Advice Would You Give?

Who knew Canadians are this adventuresome?  Last week, CBC reported that close to 4000 people -  most of them men – applied for one of two positions to be blasted into space.   If any life event change speaks to the need for immediate tax, estate and family wealth planning, this would be it!

We asked some of our MFA™ and DFA-Tax Services Specialists™ what these would-be astronauts should be talking to their financial advisors about, in anticipation of being chosen.

Here’s what Alan Rowell, MFA™, DFA-Tax Services Specialist™, The Accounting Place, said:

“As the client wants to strap him or herself to a rocket (built by the lowest bidder) and have someone else light the fuse, my first reaction would be “Are you out of your mind?”  That would naturally lead me to question the ability of the client to make sound financial decisions, and I would want to see the POA and Will updated, as well as the documentation showing they are of “sound mind”.

Next I would advise that the client prepay any life insurance premiums for at least the planned length of time they would not be standing upright on solid “earth” ground.   I would advise the client not to sign the Release of Liability Waiver that is sure to come up somewhere.

I would have the client check their employment contract to ensure that all Labour Laws are covered by the employer and that benefits have been negotiated, including “out of country” health care premiums, travel costs, medical coverage, catastrophic event coverage as well as overtime as I think I can safely assume they would be on-call 24/7 during the contract period.

The employee benefit plan should also cover costs of “returning the deceased body to their hometown”.  In addition, the employment contract should state that “In the event of communications not being available, it is assumed that the client is and has continued to work until such time as their feet are once more planted on earth”.  In other words, the pay cheque continues, indefinitely, into perpetuity, indexed, even if there is no actual human on earth.

Finally, I would ensure that their American Express is current and active.  After all, “Don’t leave home without it”

Editor’s Note:  We felt a follow up was required and asked the following questions:

• What is the astronaut’s residence for tax purposes?
• Would a temporary home on the rocket compromise the principle residence exemption on earth?
• How would a fiscal year end by determined, when revolving around the sun?
• Should the astronaut qualify for an “Altitudinal Allowance” under the Northern Allowance provisions?

Your thoughts?  Please send them to Knowledge Bureau Report!

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