Advisors have the opportunity to help small-and-medium-size business clients create estate plans that will minimize the tax payable upon the client’s death, provide for family members and reduce conflict among beneficiaries. An effective estate plan should flow from the plan that the SME client has…
The two most common ways people choose to own property together are tenancy-in-common and joint ownership. For estate purposes, the key distinction here is that a tenant-in-common interest falls into a deceased owner’s estate, whereas a joint interest bypasses the estate and instead passes to…
Business and family relationships change over time. When that happens, people may need to move a life insurance policy from one person or entity to another. This requires careful review to ensure client objectives remain achievable. Typically, when ownership of a life insurance policy changes,…
Many professionals now have the opportunity to run their business as a professional corporation. The ability to incorporate raises a number of planning issues and opportunities. This Tax Topic will explore the ins and outs of professional incorporation. Who can incorporate? Traditionally, professionals have carried…
When an RRSP annuitant dies, it’s often possible to roll over the RRSP to a beneficiary on a tax-deferred basis. If the beneficiary is a spouse, common-law partner (CLP) or a financially dependent child or grandchild with a mental or physical disability, the beneficiary can…
Fewer Canadians are donating to charity. Statistics Canada reports donations fell nearly 2% to $8.3 billion in 2012. What’s worse, the number of people giving slipped 1.4% to 5.6 million. Advisors can help reverse this trend by telling clients their charitable aspirations can be tax-efficient….
What does retirement look like for Canada’s wealthy? A BMO Private Banking poll shows those with investible assets of $1 million or more: will retire, on average, at age 60; feel they need an average of $2 million to live out their ideal lifestyles; plan…
You understand how important financial planning its, but not all clients grasp its value. Here’s how to bust eight common myths. Myth #1: Wealthy people don’t need plans They’ve got more money than they can spend. Why do they need a report? Why it’s wrong:…
Leveraging, or borrowing to invest, can be a very effective strategy. When an investor believes his or her potential return on an investment will exceed the cost of borrowing, leveraging can make sense. The benefits are further enhanced when interest paid on borrowed money is…
Frequently incorporated in estate plans for affluent clients, an estate bond is a tax efficient strategy that creates a large and immediate estate value. An estate-bond strategy is also an estate wealth accelerator that allows assets to pass on to heirs or shareholders, tax-free. Typical…