Did you know that a significant risk to Canadian estate wealth lies in the application of deemed disposition by the Canada Revenue Agency (CRA)?

In an estate planning context, deemed disposition is the assumption (for tax purposes) that the deceased has disposed all of their capital property just before death, thereby crystalizing taxable capital gains on appreciated assets, as well as including the full value of the deceased’s RRSP or RRIF assets in their  taxable income on their terminal return (if spousal rollover is not elected or is not applicable).

The application of such deemed disposition upon your passing, subject to how you have structured your wealth at the time of your passing, may significantly erode your estate wealth. In extreme cases, your executor may be forced to liquidate assets to settle the resulting tax liabilities.

In this article, we describe two insurance solutions which may help you cover the tax which would otherwise be payable by your estate.

Formulating an estate plan can be daunting, but the process can add tremendous value to your overall wealth strategy, reinforcing your financial peace of mind and ensuring your legacy. To help guide your estate planning process, we have developed an estate planning checklist, organized into 4 key steps.

You have built up significant family wealth, through entrepreneurship or otherwise. Now you wish to allocate it in a meaningful way—to empower future generations and set them up for success. You probably have a vision for the sort of impact you would like to have for generations to come, and perhaps have some idea as to what proportion of your assets beyond your needs you wish to allocate to particular family members. However, there are likely complexities to navigate as you plan out the cascading of this wealth. In this article we highlight 3 key mistakes to avoid in the process of distributing this wealth and in managing it once received.

Most wealthy individuals think about increasing their wealth during their lifetime, but spend little time thinking about what will happen to their assets after they are gone or when they are no longer able to make decisions themselves. Estate planning is a task that many of us put off until later in life, but no matter your age or wealth, having an estate plan is among the most important things you can do for yourself and for your loved ones.

Without an estate plan, you have little control over what will happen to the assets that you have worked so hard to accumulate. This article points out the top 3 emotional reasons why estate planning is important, so that you can see the blessings estate planning can bring.