As your trusted financial brokerage, at Bowie Financial Inc., we want to help you protect your hard-earned assets and ensure they are passed down to your loved ones as efficiently as possible.
In Ontario, estate taxes and probate fees can significantly reduce the value of your estate and the amount that your beneficiaries receive.
Estate taxes are imposed on the value of your assets at the time of your death. Probate fees, now known as The Estate Administration Taxes (EAT), are also based on the value of your estate and can be quite substantial, “eating” away at your estate and the money your beneficiaries ultimately receive. The Estate Administration Tax when also including legal and accounting fees that are associated with estate settlements can be upwards of 5% – 10% of the total assets being passed down to your loved ones.
The good news is, is that there are strategies to help you avoid or minimize estate taxes and probate fees.
One of the most effective ways is to use segregated funds, which are insurance based investment products that can bypass the probate process entirely. Segregated funds can be used with most financial accounts such as RRSP/RRIF, TFSA, LIRA/LIF and Non-registered/Cash accounts. By designating a beneficiary through a segregated fund policy, the proceeds can then be paid directly to your beneficiaries, bypassing your estate and avoiding unnecessary probate, legal and accounting fees as well as delivering the proceeds in a timely fashion.
If you want to learn more about segregated funds, click here to read all about them in a blog we wrote.
Other strategies that are helpful for estate purposes include creating a will, setting up trusts, gifting assets during your lifetime, and holding assets jointly with right of survivorship.
Our team at Bowie Financial Inc. is here to help you navigate these complex topics and develop a comprehensive estate plan that maximizes the value of your assets for your loved ones. If you have any questions or would like to schedule a consultation, please don’t hesitate to reach out to us.
Call us today! 613-416-2020