Estate planning

Estate planning is the process of preparing for the transfer of your assets and liabilities after you pass away. It includes creating a will, setting up trusts and other financial vehicles, naming beneficiaries and deciding how taxes should be paid.

Estate planning protects your family and loved ones from stress, uncertainty and financial hardship in the event of your passing. Most importantly, it can help you rest easy knowing that your hard-earned assets will be passed on exactly according to your wishes. 

Estate planning in Canada follows the laws of each province. Depending on where you live, you may need to pay probate taxes—a fee for processing a will or estate. The amount is usually based on the total value of your assets after any debts are paid off.

All debts and tax liabilities must be paid off before any remaining assets can be distributed to your heirs. Your appointed executor is responsible for filing your final income tax return after you die, which includes any income earned up until the time of death—including Registered Retirement Savings Plans (RRSPs) and other investments, plus any interest income on cash accounts.

The good news is that in Canada, money held in Tax Free Savings Accounts (TFSAs) and the capital gain exemption on a primary residence are not taxable.

When creating your estate planning checklist, consider all aspects of your finances and documentation.

This checklist should include:

1. Your will (including your assets, beneficiaries, guardians, and executor)
2. Power of attorney for financial and medical decisions
3. End-of-life wishes (including funeral arrangements)
4. Retirement benefits
5. Life insurance policies
6. Safekeeping important documents (birth certificates, land titles, marriage certificates, etc.)
7. Digital assets (passwords, digital accounts, etc.)
8. Financial planning (including investments, taxes, debts, etc.)
9. Trusts and other financial planning vehicles (e.g. family limited partnerships)
10. Charities or non-profit organizations that you want to support
11. Estate taxes
12. Special requests for personal items (jewelry, heirlooms, etc.)

If you're unsure about what should be included in your estate planning documents, we can help. Contact us to discuss your options.

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No. A will is a legal document that outlines how you want your assets distributed after you die. Estate planning, on the other hand, is the process of creating and updating your will, listing beneficiaries, preparing for taxes, setting up trusts and insurance policies and more.

You can reduce estate taxes in Canada in several ways. First, you can transfer assets to family members while living. This is because any assets gifted before death are not subject to estate tax. You can also set up trusts or charitable organizations before your passing, which can help reduce the taxes due on your estate. Permanent life insurance policies can also help reduce taxes, as the proceeds are generally tax-free.