In terms of wealth transfer to younger generations, the next decade will see what some are calling a "bequest boom."
The question of how to cover estate taxes is a common dilemma in estate planning. With that in mind, one thing you may want to avoid is saddling one of your beneficiaries with the tax bill while essentially allowing another beneficiary to avoid estate taxes altogether. This situation could produce heart-rending conflict among your beneficiaries.
Ontario's estate administration tax -- commonly called the estate tax or probate tax -- is calculated based on the total value of the deceased's estate at the time of death. The assets to be valued include:
Tax considerations regarding retirement assets are a critical aspect of estate planning if you want to minimize your beneficiaries' tax burden. Here let's discuss some basic strategies for ensuring that beneficiaries are able to access and make the most of any retirement savings to be distributed.
Canadian investors with tax free savings accounts will be reassessing their tax exposure in 2016. Starting Jan. 1, the annual TFSA contribution limit will roll back from $10,000 to $5,500.
Avoiding taxes or minimizing their impact on your estate is an essential part of comprehensive estate planning. Compared with other provinces, Ontario has a particularly high estate administration tax. However, there are strategies that a lawyer can help you implement in order to minimize your estate's tax burden.
The tax free savings account is a cost-effective investment tool not only because it shields your savings from taxes, but also because a TFSA is not necessarily subject to probate and can be used to pass an inheritance confidentially to a beneficiary.
A comprehensive estate plan can include multiple vehicles for retirement savings. For example, a trust, a tax free savings account and a registered retirement savings plan can all be coordinated in the same estate plan in order to maximize your finances during retirement.
Estate executors and trustees in Ontario are perhaps under more pressure today than ever before. As we discussed in a recent post, individuals who have received a Certificate of Appointment must file an Estate Information Return with the Ministry of Finance within 90 days of receiving the certificate.
In less than a month, Canada will hold its 42nd general election, and a hot political topic this year is the Tax Free Savings Account. The annual contribution limit for the TFSA was raised by the current Conservative government to $10,000, and the Liberals and New Democrats have made it clear that they want to bring the amount down to the previous limit of $5,500.