Man getting wealth/money bag

Largest Transfer of Wealth Coming Your Way

​​Are You Prepared?

Man getting wealth/money bag

Over $400 billion is going to be inherited in the next 10 years- the largest transfer of wealth in Canada’s history, but a new study shows that 75% of us are not prepared!  (Read about it here).

 

Just writing a will is not enough
It’s important that family assets are passed on in the most tax efficient way. With the recent changes to tax law and increased personal tax rates, it’s more important than ever to speak with an estate lawyer- there are some simple yet basic strategies to minimize your tax liability.

 

What does this mean for you?
Without a proper estate plan, more money is spent on litigation, taxes and other fees; less money is distributed to heirs. Unbelievably, the study found that only 22% of high net worth Canadians- the ones with the most money to lose- say they have a detailed inheritance plan.

 

What can you do?
Too many Canadians don’t consider themselves “wealthy” (Canadians are still very modest!)  -they don’t feel they need to have an estate plan, but whatever size your estate is, don’t you want it distributed as per your wishes?

 

Here are some actionable items to help get you started:

  • Have a conversation with your children: it’s difficult but necessary. By understanding their wishes and working it out now, stress and possible legal battles in the future would be eliminated.
  • Make sure your  key documents and accounts are kept in a safe place the family could access.
  • Meet with an estate lawyer: find out how family assets could be passed on to the next generation in the most tax effective way.
  • Donate some assets to Charity: you get a full tax receipt, and no capital gains tax!
  • Forward this to other family members whom you know have not done any planning!

 

Want to find out more about how you can hold onto more of your assets? Contact me for a complimentary 30 minutes consultation …

 

Aviva Abraham is a group benefits and insurance advisor at Creative Planning. She has been providing healthcare solutions for self employed and business owners since 2010. You can reach her at aviva@cpfg.com or 416-545-5310.

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