The first question people ask us when we bring up the subject of Estate Planning is “Why does it matter to me?” We find that many people assume that estate planning is only for the wealthy. This couldn’t be further from the truth. What becomes clear to families of all the Canadians who die every year without a will is the disbelief when the province takes control of the estate to decide how the assets are to be distributed. Even for smaller estates, the costs and delays of probate can have devastating consequences.
The goal of estate planning to Northern River Financial is to arrange your financial affairs in a way so that your assets can be passed to your heirs efficiently and expediently. The good news for Canadians is that no estate tax is owed when an estate is transferred to your heirs after you die. The bad news is that, depending on the type of assets in an estate, there may be “deemed disposition tax” that could seriously disrupt the financial lives of your surviving family. Estates that are properly planned have assets arranged and titled in such a way as to minimize any taxes payable.