Wise Real Estate Planning

Estate Planning- What, Why, When, & How?

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•What is estate planning?•Why to do it?•When to do it?•How of Estate Planning?•Types of taxes on Estate Transfers?•Steps to save•Caution to the reader•Feedback

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Estate Planning is, like any financial planning. The key point here is

how you can make it less taxable for your survivors after you die.

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After death the estate of an individual passes to the surviving spouse or legal heir in many ways.

•This depends on how the property is held with the deceased spouse.

•For Joint tenants, the surviving spouse automatically becomes the owner of the deceased’s share.

•For Tenancy-in-Common, the share of the deceased passes on to heirs like spouse’s parents, brothers, or lineage.

•For Common law partnership, the share doesn’t pass on to the common law partner. For More Click here

Estate Planning- Why?

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Estate Planning-Why?

• To reduce taxes on probate• To make it less stressful for your survivors.• To pay for your funeral expenses.• To have peace of mind.• To avoid future conflicts between family

members.

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Estate Planning-When?

You can start right away while in full senses and abilities.

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Estate Planning-How?

•Start with making a list of all your bank accounts, investments, properties, and/or any other tangible/intangible assets.•Consult your financial institution, or estate planner, or an insurance advisor•Seek legal advise from a seasoned family law practitioner.•Understand capital costs associated with transfers.

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Estate Planning-Taxes

•The major tax on transfer of assets is the Probate Tax.•Probate Tax could be as high as 1.5% of all asset value.•There may be costs associated with executors’ appointments by court if one dies without will.

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Estate Planning-Taxes

•Another tax on transfer of assets is the Capital gains tax. It could be 25% of the capital appreciation in asset’s value.•Capital gains tax is calculated on the gain in asset value from the adjusted cost base.•Primary family residence under joint tenancy is exempt from capital gains tax.•Any property disposition other than primary residence falls under capital tax under the income tax rules.

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Estate Planning- Steps to save

•Write a will and mention clear instructions.•Revise older wills from time to time. Expired wills may be rejected by the courts.•Leave some estate proceedings to charities. This reduces probate taxes.•Consider gifting but be careful. Any gift given is exempt from gift tax, but if it is an appreciable gift other than cash, it may be subject to capital gains tax due on giver.

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Estate Planning- Steps to saveContinued from prev. slide

•Check out province’s law on taxes.•There are many variations beyond the scope of this presentation and this list is by no means exhaustive. Please consult your advisors.

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Caution to the reader

•This presentation is for information purpose only and is no way an exhaustive document. The information is deemed to be reliable, however no representation or warranty of its accuracy is implied. Please consult your solicitor or advisors and your province’s legislation. •You indemnify the complier of this information from any issues/complexities arising as a consequence of basing your decision on this presentation.• No part of this presentation be reproduced without express written consent of the author and/or without any citation to the author.•Not intended to solicit clients already in contracts with other brokerages.•I strongly advise Independent Legal Advice (ILA) before acting on any information in this presentation.

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Submit your feedback

•How do you rate this presentation? Please tell me if you got some benefit out of this.•Send me an email at paulcheema@bell.net.

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