No-one wants to think about passing away, especially if we’re young or have small children. Unpredictable things happen unfortunately and taking care of your family through estate planning can help your family in many ways.
With a well laid out estate plan, you can minimize the tax burden as much as possible for your loved ones. Even the simplest Will can help to eliminate or reduce government taxes and can also minimize tax your beneficiaries may need to pay on certain assets.
Who Can Benefit from Estate Planning?
Everyone can benefit from estate planning, whether you own real estate, do well in the stock market, have personal savings, investments or other assets.
If you don’t decide who receives these items prior to your passing, you have no control on who your assets will go to. Without a Will in place, the Courts can decide who your assets go to when you pass. This can be a long process that can take months or even years to finalize causing your loved one’s undue stress and hardship.
Ways to Save Money with an Estate Plan
There are several ways to save money on estate tax. One of the simplest ways is by designating a beneficiary for any accounts that you own (for example, RRIF, RRSP, Mutual Funds, Personal Bank Accounts). You should also ensure you have a designated beneficiary for any life insurance policies which you hold. Without a designated beneficiary in place, life insurance is also subject to estate tax. You may own your own life insurance policy or through your employment. If you do not designate a beneficiary for these accounts or life insurance, they will be subject to estate administration tax.
Other options are available that are more complex. With the help of a knowledgeable lawyer and financial planner, you can create a plan that saves you as much money as possible, leaving your assets to who you love on your passing.
Through estate planning, you can decide who your beneficiaries will be, whether they be your child, a parent, a friend, loved one or charity. Having a plan in place will ensure the ones you care about are taken care of.
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This WARDS LAWYERS PC publication is for general information only. It is not legal advice, nor is it intended to be. Specific or more information may be necessary before advice could be provided for your particular circumstances.
