How the Kim Kardashian Diet Can Increase your IQ and 10 Consequences of Dying without a Will
For reasons unknown to me, my wife thought that my articles about Estate Planning are not “exciting” (this is a euphemism) – thus, the reason for today’s title. Unfortunately, I know extremely little about Kim Kardashian or her diet, but I do have a few important comments to share about the importance of having a […]
Death and Probate Planning: Minimizing the Estate Administration Tax (a.k.a., “Probate”)
There is a famous quote by Benjamin Franklin that nothing in life “can be said to be certain, except for Death and Taxes.” Although death is inevitable, certain strategies may be undertaken to minimize taxes and ensure that as much of your estate goes to your intended beneficiaries as possible. Today, we will consider Probate […]
How Corporate-Owned Life Insurance Can Benefit your Business and Enhance your Estate
You own your own business and you have incorporated. A wise decision as corporate structures can provide significant benefits, such as: Limited liability Continuity of the business Easier access to capital Lower income tax rates with the Small Business Deduction (“SBD”) Potential Tax Deferral and Tax Saving opportunities Now that your business is incorporated, have […]
The Estate Bond Strategy: Tax-Efficient Tool to Accumulate and Transfer Wealth
The Estate Bond Strategy: Tax-Efficient Tool to Accumulate and Transfer Wealth Quite typically, life insurance is viewed as a pure risk management tool used to create liquidity in the event of death. In this “traditional” approach, insurance is used to fund personal and business needs – such as income replacement, debt repayment, and funding estate […]
Cascading Life Insurance as a Wealth Transfer Strategy
In working with affluent families, one of the key questions I commonly hear is how to transfer wealth to their children and/or grandchildren while paying the least amount of tax? Here is a strategy that allows for wealth to accumulate on a tax-sheltered basis and effectively transfer to children and/or grandchildren free of income tax […]
Opportunity to Income Split and Save Taxes on Investment Income
The CRA has announced that they will be decreasing the Prescribed Rate for the third quarter of 2020 from 2% to 1%, effective July 1, 2020. Consequently, Canadian taxpayers will have an opportunity to lock-in Prescribed Rate family loans at the lowest possible level and potentially achieve significant recurring tax savings on investment income by […]
Financial Implications Announced by The Canadian Government
These are extraordinary times that require extraordinary measures to help our country navigate the financial pressures resulting from the economic climate. The Federal Government announced today measures to help Canadian individuals and business owners cope with the fallout from COVID-19. It is important to understand that most of the measures announced are payment deferrals and […]
Tax Planning in Volatile Times: Is Now the Time to Consider an Estate “Freeze” or “Refreeze”?
During these unique times of COVID-19 which have created uncertainty and significant stock market volatility, the famous military strategist Sun Tzu comes to mind. In The Art of War he famously stated, “In the midst of chaos, there is also opportunity”. An Estate “Freeze” or “Refreeze” are potential tax planning strategies, which may allow you to take advantage of certain opportunities in […]