Estate planning is the process of strategizing how, when and to whom, the proceeds of your accumulated wealth is distributed after you are deceased, with minimum loss of value because of taxes and forced liquidation of assets.
If Estate Planning is not in place, a great deal of your estate could go to the government. That’s largely because of a rule known as “deemed disposition”.
Under the deemed disposition rule of the income tax act, when you die, all your assets are treated as if they had been sold.
In today's complicated world, you'll need to understand the legal and tax ramifications of your requests, and how they impact the value of the estate and its obligations. However, we believe its better to do this planning with the help of professionals such as a lawyer with estate experience, as well as an accountant, insurance broker and investment advisor where their input is required.
General Solutions:
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Insurance : Proceeds can offset the tax (capital gain) burden on capital assets that would otherwise have to be sold to cover the tax owing at death.
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Segregated Funds : Proceeds of a segregated fund policy held in a non-registered account can pass directly to your named beneficiaries, without passing through your estate. Therefore, these funds are not subject to probate, lawyer's or executor's fees. However, your estate is taxed on any applicable gains. Click here to read more about segregated funds.
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Insured Annuities : An insured annuity allows you to transfer a portion of your wealth and serves as an important asset protection and income enhancement solution. |
Other Solutions
Deferring taxes by joint-ownership, designation of beneficiaries, spousal rrsp rollovers, living trust, Gifting assets prior to death to charities etc. are few of other common solutions implemented/recommended during our estate planning consultation.
To read my complete document on Taking tax advantages of Planned Giving. Please click here to download your complimentary copy.
For those who like to leave nothing to chance the following documents courtesy Canada life will come quite handy
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Personal Record Organizer - This brochure is designed to help you organize, in one handy location, important information about your personal and financial affairs. It provides a convenient record that will be easy for you to update once each year. It will also help your loved ones with your personal affairs after you have passed away.
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If you die without a Will - This is a chart providing province-by-province explanations of how your assets will be distributed upon death if they have no will stating other wishes.
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For your family - This brochure provides your family with the information they will need to know about settling the estate. Included in this brochure is practical advice on whom to contact and information on the options available to beneficiaries of the life insurance proceeds. |
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For your executor - This is a general guide for your chosen executors outlining the many duties and responsibilities your executors will have to carry out on your behalf. |
