Estate Planning and Best Practices

As part of the Estate Planning process, it is imperative that you organize your affairs so that they are managed according to your wishes. This may be in the case of either death or incapacitation.

The goal is to conserve most of your assets and distribute them to the people or charitable organizations of your choice, while minimizing taxes and expenses.

You should consider the items below and take the time to discuss your Estate Plan with your Financial Advisors and your chosen family members. Each estate plan is unique and in order to fulfill your wishes, it is important to use the tools that are available to you.

• Wills – personal, corporate & foreign – if you have a corporation or foreign assets you should speak with your lawyer about a corporate will or a lawyer in the area you hold your foreign assets. (this may mean a secondary will to address out of country assets). Every adult should have a valid and up to date will outlining their wishes.

• Power of Attorney – Financial and Medical – be sure to set up suitable financial and medical Power of Attorney’s. These individuals will be in place if you are incapacitated but will cease at your passing.

• Executor – Choose an executor (one or more) that understands the requirements of being an executor and who is willing and capable of conducting your wishes.

• Charitable Giving - Gifting assets during your life or at your passing can reduce your tax burden, consult a specialist to discuss options suitable to your unique situation.

• Funeral Arrangements – consider making your funeral arrangements in advance to reduce the burden on your executor and family members.

• Listed Beneficiaries - a listed beneficiary on a RRSP, TFSA, Segregated Fund or Life Insurance policy will bypass probate and pass directly to the listed beneficiaries. This can reduce taxes and the time it takes to settle your estate.

• Successor Holders – your spouse can be listed as your successor holder of your TFSA, allowing them to carry over your TFSA room if you pass away.

• Jointly held assets – Joint with Right of Survivor assets will pass to the joint owner at passing. Speak to your financial professionals before adding joint holders to assets as there may be tax or other financial implications to adding joint holders to certain assets.

• Tax Free Savings Account – a tax-free savings account can have direct beneficiaries and will grow tax free during your lifetime. The current cumulative (2024) contribution limit is $95,000 (based on being born prior to 1991).

• RRIF Meltdown Strategies – A RRIF meltdown strategy can be used during your retirement to reduce your final estate taxes and grow your overall estate.

• Trusts - Family and other – Trusts can help to defer tax and address succession of a family business as well as help to protect your estate and assets.

• Life Insurance – Life Insurance plays a vital role in offsetting capital gains on investments and property and provides risk protection for your loved ones. Speak with a licensed Insurance Advisor to discuss suitable Insurance strategies for your risk and Estate planning needs.

  
  

It is important to review your Financial and Estate plan on a regular basis as you move through life’s stages and events.

Cynthia Batchelor is a Financial Advisor with Assante Capital Management Ltd. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd. Please contact her at 613-258-1997 or visit ofarrellwealth.com to discuss your particular circumstances prior to acting on the information above. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. Insurance products and services are provided through Assante Estate and Insurance Services Inc.