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The Benefits of Strategic Estate Planning
It’s a common and understandable goal. Many Canadians want to preserve and pass on as much of their estate as possible. Which makes it all the more surprising that so few make adequate plans to shepherd and allocate their lifetime assets. The predictable result: estates are settled in ways that were never intended, larger payments then necessary are made to Revenue Canada, and ultimately, chosen heirs receive a diminished inheritance. Avoiding this fate demands that you address these key questions:
- How will you preserve your assets from taxes and unnecessary probate?
- How will you ensure the fair and timely distribution of your estate according to your wishes?
- How will you protect your family in the event of your premature death?
- How can you minimize capital gains taxes during and after your lifetime?
- How can you preserve your RRSP’s or RRIF’s in their entirety for your heirs?
- How can you create wealth and enhance income on a tax-favoured basis?
Working with an accredited Tax and Estate Planning Specialists will help you to develop truly timeless answers for your lifetime and beyond.
Substituting Common Sense for Clichés
Canadians are more financially sophisticated than ever before. Yet many still fall back on stereotyped thinking, rather than actively protecting their financial heritage. Some of the following financial excuses may have a familiar ring: Estate planning is for older people. I’m still young. Young people, especially those with children, need sound financial and estate planning just as much as seniors. An estate plan can protect loved ones who depend on you financially. My entire estate will go to my children. What about taxes? Have you done everything that you can to ensure that your children are not left with an onerous tax burden after your death? If not, Revenue Canada could be your biggest beneficiary. It all sounds very complicated. Just getting started is often the most difficult step you’ll take when learning about sound financial and estate planning strategies. A comprehensive step-by-step approach, with advice from a Financial Services Estate Planning Specialist will make it far easier than you think. I don’t have the time right now. Finding the right time is always a challenge. But when you see the benefits that estate planning can give you and your family, you’ll agree that you really can’t afford not to make the commitment.
Assuring Estate Integrity, a Checklist
Before an optimal estate plan can be developed, many specific issues must be addressed. The following list is a good start:
- Has an estimate been made of the size and composition of your taxable estate?
- Can specific assets of the estate be used to cover estate costs without causing unwanted liquidation?
- Can your estate generate sufficient income to meet needs without depleting principal?
- Have projections been made to estimate how long your resources will last?
- Is action being taken ( for example, acquiring additional life insurance) to assure that these needs are met?
- Do you have an up-to-date will that is consistent with your wishes?
- Have you established an appropriate power of attorney in case you become incapacitated?
- Do you estate plans take into account either spouse predeceasing the other?
- Have trusts been considered as part of your estate planning program?
- Would you like to make any restrictions on your heirs’ access to assets they may inherit at your death?
- Do you have any assets that may attract U.S. estate taxes?
- Are there any foreseeable events that might affect your ability to provide for survivors in the event of sudden death?
Putting the Right Estate Plan in Motion
Knowledge breeds understanding and action. To assist you in becoming more fully informed about both your options and to assist in implementing a plan that protects your estate from taxes and passes more of it on to your beneficiaries contact our Specialists. Working with you, they will:
- assess your financial and estate concerns and objectives
- gather relevant tax and financial information
- clarify your estate planning position
- identify potential problems and opportunities
- develop a written strategy, outlining appropriate solutions and making specific recommendations
- implement and co-ordinate the agreed course of action with other advisors.
We bring unmatched strategic capability to the estate planning process including estate preservation and maximization, charitable giving, small business succession and planning, cross-border (Canada/US) financial and estate planning and maximization of retirement income.
Contributed to businessmatch-maker.com by Bryan Allendorf
I need tax planning.
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