Succession and Estate Planning

Estate Planning

Estate planning is a process that eliminates uncertainties and maximizes the value of your estate. The steps involved include:

• Review and document your current financial situation
• Define your personal and financial goals
  Identify options and make informed choices that will allow you to achieve your desired outcomes
• Put your plan into action
• Review your plan and periodically make adjustments
• There are no estate taxes in Canada, however, most provinces charge fees to probate (the process of administering) your Will. In Ontario under the Estate Administration Tax Act there are no probate fees for the first $50,000 of your estate and $15 for each $1000 of the value of your estate.
• Working with a professional estate planner enables you to make informed, carefully considered decisions about the things that matter to you most – your family and friends, your own care should you become unable to care for yourself, and the ownership, management, and distribution of assets during and after your lifetime.
• Working with a professional Advisor may help reduce these fees.

What are the Benefits of Estate Planning?

• Ease the Burden on Loved Ones Dealing with the death of a loved one is a difficult time. Your estate plan can outline your wishes for funeral arrangements and even set aside the funds to cover them.
• Keep Assets Safe
  There are a variety of ways to safeguard the assets owned by the trust from lawsuits and divorce decrees.
• Minimize Expenses & Taxes
  An estate plan can help minimize the amount of tax collected on your estate, keeping more of the money with your beneficiaries.
• Ensure Assets Go to the Right Beneficiaries
  Your estate plan will define where your assets go when you pass on.
• Create a Legacy
  You can choose to create a legacy for future generations by establishing different types of trusts which can provide self-perpetuating endowment for years to come.

Top Five Considerations for Succession Planning

1. Protect Your Wealth
   Consider your beneficiaries as your family changes over time.
2. Maximize Wealth Distribution
   Did you assist any of your children financially? Will this determine if your estate is divided equally or not?
3. Minimize Taxes
   Are you aware of taxation consequences on your estate and how to best mitigate them?
4. Mindset
   Do you have a plan in place to ensure your retirement is secure and your wishes are recognized?
5. Timing
   The process of exiting a business could take up to five years so the earlier you start planning, the more prepared you’ll be to execute on those important business decision.

What are the Benefits of Succession Planning?

1. Minimize Taxes
   Rest assured knowing you have an organized, tax-efficient transfer of the family wealth or business assets you have worked so hard to build.
2. Be Prepared
   By putting a solid plan together, you control the setting of priorities, the speed of implementation, and the ultimate outcomes of your strategy – while avoiding surprises.
3. Clear Expectations
   A clear succession and estate plan encourages direct and transparent conversations with all parties affected. Defining clear roles and expectations keeps your family dynamic preserved.
4. Leave a Legacy
   Build your legacy to benefit future generations with a clear plan that identifies and defines your wealth and business purposes.