You’ve fallen in love and choose to live with your partner (without documentation). That was in your 20s. Since then, your investment portfolio has grown significantly. What should you do? Or, maybe you have school aged children. What might happen to them if you die? Or, you’re a retired senior and you’ve lost your spouse to cancer. A few years later, you’re...
How wealthy are you? Typically, we think of financial wealth in numbers: our income, our net worth, or maybe how much money we have. But of course, wealth is much more than just dollars & cents. Wealth includes our health, the quality of the relationships we have with our family & friends, as well as our knowledge & experience. Being...
Owning some or all your assets in joint ownership with your heirs (your spouse & kids) is common practice for many investors, particularly seniors. The main reasons to hold assets jointly is to avoid probate fees, make the administration of your estate easier/quicker, avoid certain taxes, and provide your heirs with a way to help you manage your finances. This...
When someone dies owning private company shares, there is a risk of double or even triple taxation. A deceased individual’s estate owning private corporation’s shares may be taxed because of the deemed disposition at death of those shares (capital gains tax).There may be tax payable by the corporation when it sells assets to fund distributions to the deceased person’s estate (capital...
Canadians might be surprised to learn they may be exposed to US estate taxes. This post describes the risks to Canadian investors and how they might protect themselves.
Administering someone’s estate after they die can be a difficult and heavy responsibility. Before you begin that journey, consider the professionals who can help you fulfill your responsibilities such as lawyers, trust companies, accountants, and bankers. Also consider the legal obligations estate trustees must adhere to. If you’ve been charged with administering an estate or if you’re considering this role,...
This post will describe what a wasting freeze is and consider other issues such as adding leverage and making charitable gifts.
An estate freeze caps the current capital gains tax liability of an asset expected to appreciate and transfers the growth in value to successors. Families use estate freezes to pass down assets to future generations such as kids and grandkids. Businesses also use estate freezes to transition ownership to family members and/or employees.
Everyone should have an up to date will & estate plan. If your estate is simple, its easy to write a basic holograph will or consult with a neighbourhood lawyer. But when you’re wealthy its important to ensure your estate plan considers a complex set of tax rules and supports generational wealth transfer. This post will describe basic best...
This post will describe some key governance and documentation strategies to consider when planning for the succession of your Canadian private charitable foundation.
