Keep it in the Family

Are you aware that up to 46% of some of your hard-earned assets may be lost to taxation upon your death?

Under certain conditions Canada Revenue Agency (CRA) could get as much as 46% of the value of some of your assets. The assets most at risk are:

  • Family cottage
  • Family business
  • RRSPs, RRIFs, LIRA, etc.
  • Stocks and mutual funds
  • Any asset with a deferred tax liability

Some people are not concerned about the loss of wealth or the loss of assets that occur after their death. Occasionally, there are no living relatives or close friends, so estate planning is not a big concern. Or, some people choose to use the estate planning technique known as “die broke” and leave nothing behind. But, if you want to do something to preserve your estate or keep assets in the family, then you may have a problem.

Many people are concerned that without proper planning, there may be family disputes after their death. This concern is very well founded. Arguments and disagreements over the settling of an estate can have long-lasting repercussions on family members. This is particularly true if some of the children have developed an attachment to certain assets, such as the family cottage, which they may end up being forced to sell, if it has a large deferred capital gain on it.

However, capital gains tax is not the only problem. You may also have a deferred tax liability on your registered assets (e.g. RRSPs/RRIFs). Upon your death 100% of the value of these assets could be subject to taxation. When you die, the total value of your RRSPs and RRIFs (if not left to a spouse or dependant minor child) are included in your income for that year. This means almost half of the value of your registered plans could be payable to CRA upon death. Unfortunately, many people are unaware of the consequences of their deferred tax liabilities, and fail to examine options for preserving their estate.

ORDER YOUR FREE REPORT TODAY AND FIND OUT HOW TO
“KEEP IT IN THE FAMILY”

Disclaimer: The information contained herein is for ON residents only and does not constitute an offer to sell or solicit sales in any other Canadian or foreign jurisdictions.