Estate Planning & Settlements

Estate Plans that are to Die For

Organize Your Estate now; Preserve Your Legacy for Generations to come

Estate Planning is more than simply having a Will and you don’t have to be “Daddy Warbucks” to have an Estate… You’ve built a Legacy; Bowie Can Help Secure it. We stay up-to-date on the latest changes to Probate/Estate Administration Tax in Ontario and educate our clients on the best practices for intergenerational Wealth Transfer. We also offer professional services that assists Executors in handling the multiple responsibilities of Estate Settlement after the death of a loved one. It’s nice to have a Tax Department on hand!

How can our Certified Executor Advisors (CEAs) Help with Your Estate?

With changes to Probate and the introduction of the Estate Administration Tax (EAT) in 2015, the Executor’s role in Ontario has changed drastically. Add in technology, taxation, complexity of assets, new family dynamics, sweeping new legislation and risk of personal litigation and we have a perfect storm for today’s Executors.

The best time to organize your legacy is now, while you’re living. CEAs help simplify your assets and categorize them so you know what can be passed along directly to named beneficiaries (avoiding Probate, fees, and headaches) and what must be part of your Will (these assets may experience delays and fees). Worried that your “big spender” may squander their inheritance? Consider gradual inheritance plans and other options built into Segregated Funds. These investment options can often replace a trust – everyone’s legacy is important; no matter the size. Bowie Can Help you create an Estate plan that’s to die for.

You may not be alive to see your Highest Tax Bill Ever

We don’t have to go outside of Canada or have a change in government policy to be subject to “death taxes” (aka. Final Year Income Tax/Trust Return). There’s income tax owing on everything that’s been growing tax-free in your RRSP, RRIF, and some other registered plans. It’s all fully taxable at your death…and usually at a high tax rate. Did you really think Ottawa would give you those deductions without expecting anything back? Also, if an asset is worth more than you paid for it, your Estate can be stuck with tax on the deemed capital gain. Your heirs may be forced to sell off assets just to pay the taxes.

Some of these taxes can be alleviated by leaving the asset to your spouse, and collecting on his or her death. Whether taxes are payable at the first or the second death, you can plan ahead and use your assets methodically during your lifetime to reduce your Final Year Income Tax bill. Sometimes you just need to work smarter, not harder.

Disorganized Estates = Unclaimed Assets

We all know people who keep their Life Insurance, Investments, and Estate Plans a secret. Some folks tell us how surprised their family will be when they find out about all these assets upon their death…well…the real surprise is that if no one knows about your assets or plans; no one will receive them. It’s estimated that over $1 billion in life insurance is waiting to be claimed by beneficiaries in the United States. We are trying to figure out how much Life Insurance truly gets lost in the system here in Canada, but these numbers must be a dirty little secret. From what we here at Bowie Financial Inc. have seen and have read about… oh gee,

LOTS AND LOTS AND LOTS of assets go unclaimed.