Estate planning is an exercise that’s both financial and emotional. We don’t know exactly how everything will work out in the future, but one thing is certain: death has tax implications. To maximize the assets you pass on to your heirs and minimize the taxes your estate will owe, consider making a plan to help ensure your estate is distributed to your loved ones the way you choose.
Consider the family business – If you have a business and want to pass it on to family members, determine whether anyone has the interest and aptitude to run it.
You should also plan to protect the value of your business from potential taxes arising after your death. If cash is not readily available at that time, your heirs may have to sell or close down the business or take on debt to keep it afloat. Insurance comes in very handy to help solve this dilemma.
Look at probate planning methods to pass on your wealth.
No matter what measures you take, there will be income tax implications for your estate. But there are ways to possibly reduce probate taxes and fees. Probate is a provincial court filing that validates your will and its executor (or executors). When probate is required, fees are based on the total value of the assets that flow through the will.
Here are some considerations:
1] Family trusts
2] Joint tenancy with right of survivorship (JTWROS)
3] Insurance solution to alleviate the tax burden