Estate Planning

High-net-worth clients should draft dual wills

When a person dies leaving a will in Ontario, it isn’t uncommon for the executor of the estate to apply for a certificate of appointment of estate trustee with a will, a legal process where courts confirm the validity of the deceased’s will, and the executor’s authority to act on behalf of the estate. An […]

By Akua Carmichael |October 1, 2009

4 min read

Estate Planning

Bequeathing the family cottage — Part II

In last month’s column, I discussed some of the key issues involved in cottage succession planning. This month, I’ll consider four case studies that highlight how different strategies can work in different client situations. Each strategy can help minimize the financial impact of a cottage transfer, while also managing some of the emotional impact. The […]

By Michelle Munro |September 22, 2009

7 min read

Estate Planning

Complement RESPs with in-trust accounts

Sometimes learning how to fund an education is an education in itself. The foundation for this exercise is the Registered Education Savings Plan, but with the cost of post-secondary education continuously rising, make sure your clients aren’t fooling themselves into believing that blindly maxing out RESPs puts their children at the head of the class. […]

September 1, 2009

3 min read

Estate Planning

Ensure legal soundness when rearranging mortgages

It’s been just over eight months since the Supreme Court of Canada effectively blessed the plain vanilla debt swap strategy, often known as the “Singleton shuffle,” in the now- infamous Lipson decision, involving the General Anti-Avoidance Rule (GAAR). Advisors will recall in the Lipson case, Earl and Jordanna Lipson wanted to buy a home. Jordanna […]

September 1, 2009

3 min read

Can kids handle the inheritance?

Wealth is rarely instantaneous. As advisors, we assist many of our clients with putting in a great deal of hard work, sweat equity and time to build up savings and create a legacy for their families. And the greatest fear many financial advisors face is seeing a son or daughter – unprepared to deal with […]

5 min read

How to appoint the right executor

Picking an executor is one of the most important decisions when your clients draft a will. Generally speaking, the executor implements your client’s last will and testament – his instructions and wishes. More specifically, this includes identifying and collecting assets; determining and paying liabilities, preparing and filing tax returns; paying taxes on time; and communicating […]

By Danny Dochylo |September 1, 2009

5 min read

Multiple jurisdictions might mean multiple wills

When advising clients on making a will, it isn’t uncommon to discover they have assets in foreign jurisdictions. That being the case, advisors need to know how to deal with issues that may arise from having overseas wealth. Consider the following scenario. Mary is a Canadian citizen who lives in Ottawa but spends her winters […]

4 min read

Bequeathing the family cottage

In my last column, I discussed the two most basic elements of estate planning — wills and powers of attorney — and how they affect the intergenerational transfer of wealth that your clients must eventually deal with. Now let’s look at one of the more common intergenerational asset transfers — the family cottage. Many of […]

6 min read

Insurance and the U.S. estate tax

Individuals in Canada often purchase insurance to help fund tax liabilities that arise on death. In addition, some insurance products are purchased as an investment vehicle to shelter income from tax. Generally speaking, estate planning with insurance is effective in Canada because insurance proceeds are received tax-free. However, for U.S. citizens living in Canada, great […]

4 min read

Estate planning 101

A reluctance to tackle touchy subjects can prove costly. I remember a long-ago conversation with one of my earliest personal tax clients about aging parents and estate planning. The client — let’s call him Bob — was the only child of a well-to-do couple. Bob had no children of his own, and was relatively well […]

5 min read