Smart Sizing Seniors Living - Tax, Estate, & Financial Planning

TAX, ESTATE & FINANCIAL PLANNING

ESTATE PLANNING

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If your spouse has passed it is usually a good idea to probate your will as soon as possible.

A Probate is the process by which a provincial court confirms the validity of a will. It can be very time consuming, and can tie up the assets for months or longer.

These forms will help you prepare for different legal issues.

Preparing an Estate Directory;

This document should contain the details of your personal financial information that your family members or professionals will need to know in the event of your passing or if you become incapacitated.

The Estate Directory outlines your assets, liabilities, account information and whom to contact. We recommend that you give a copy to your children, spouse, lawyer, accountant and financial advisor.

It is a good idea to update your Estate Directory every two years or whenever there are major changes to your financial situation.

Click here for your estate directory.

ESTATE DIRECTORY QUESTIONNAIRE

PREVIEW

TAX INFORMATION

There are many different ways of planning your estate to reduce the amount of taxes that will have to be paid when you pass. It is best to talk to either an accountant, a financial planner or both.

Here are some tax planning points for seniors to consider:

A common tactic is for the children of seniors is to add their names to the ownership of their assets such as investment accounts and their home. In most cases this can prevent the charging of probate tax upon passing.
Another tax planning measure is to more aggressively draw on RRSPs or RRIF’s in order to lower the effective tax rate of retirement funds, for example if a senior passes away with 500k in their retirement fund all 500k gets taxed at that high tax rate, if they had been proactive and drew out say 50k a year for 10 years their effective tax rate would have been significantly lower. More often than not these funds are earmarked for their beneficiaries, as a result, a side benefit is that the senior can provide the inheritance before their passing. Another positive is that they can enjoy their senior years more if they choose to use it for themselves, however the obvious downside is that the senior can outlive their funds based on how long they live.

The above are some of the most common tax planning techniques, but by no means are they one size fits all, every persons situation is different and should be addressed on a case by case basis.

Please feel free to contact your own accountant or any of the accountants or financial planners listed below.

ACCOUNTANTS

Oakville Chartered Accountant

FINANCIAL PLANNERS

For your Information. Charter House has a “Guaranteed Income For Life” program which can be financially beneficial.

Below is a brief outline;

For those saving for or in retirement, Guaranteed Income Portfolios offer many benefits.

Annual Income Bonuses; each year before you start taking income, a Bonus amount is added to your Income Value such that your future Income is increased.

Reset opportunity; every 3 years your Market Value is compared to your Income Value and, when it is higher, your Income Value is increased to match it.

Lifetime Income Rate; based on your age when you begin taking income, a rate is determined and guaranteed as the minimum rate for the rest of your life.

"Better of" RIF Income rate; your Lifetime Income Rate allows for higher income in the years where required by RIF rules and for the continuation of your Lifetime Income Rate thereafter.

Capital access if needed; if necessary you may access your investment capital, although this may result in lower Guaranteed Income in the future.

Death Benefit Guarantee; can result in a higher amount of investment capital for your beneficiaries.

Higher level of equities; may be held in your Portfolio in recognition of the value of the guarantee provided.

Feel free to contact me if I can be of any further assistance