In your last will and testament, you can clarify how estate assets should be distributed to heirs. Unless your will states otherwise, your heirs will receive their full share of assets after the estate has been administered.
It is estimated that more than 16 per cent of Canadians were over the age of 65 in 2015, and Baby Boomers outnumbered children aged 14 and under.
The federal government recently issued new rules for the Principal Residence Exemption (PRE), which allows for exemption from tax on capital gains if you are selling your primary residence.
The Ontario Disability Support Program (ODSP) can be a great help to parents of children with disabilities. However, payments from the program end when your child reaches age 65. Additionally, your child's receiving an inheritance can result in the loss of ODSP benefits.
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.
After a divorce or other major life event, updating your estate plan is essential. That means updating your will along with any other plan that names a beneficiary. Such plans include work pensions, RRSPs and insurance policies.
Family dynamics often have a bearing on how smoothly wealth passes from one generation to the next. At Hagel Lawfirm, we have seen how differences among family members can have a negative impact on the value of an estate, and we work with our clients to help them avoid such an outcome.
When planning their estates, parents of children with disabilities face unique challenges. In many cases, after a child with a disability becomes an adult, the parents must continue to make financial and personal care decisions on behalf of the child.
In Canada, many of the benefits that are afforded to legally married spouses are also afforded to common law spouses under pieces of legislation such as the Pensions Benefits Act, the Canada Pension Plan, the Insurance Act and the Income Tax Act.
Canadian families are perhaps more diverse now than ever before. An aging boomer population, second or third marriages, non-traditional households, loved ones with special needs -- these are all important realities to consider in estate planning.