Retirement Planning with Segregated Funds

Many Canadians are unaware that their estate may be taxed heavily, leaving loved ones with a reduced inheritance.

If you have assets valued over $50,000, your estate, including your primary residence, cottage, vehicles, jewellery, cash and GICs, will be taxed $15 for every $1,000 over this threshold. So, for example, if your estate value was $240,000, the Minister of Finance would tax you $2,850.

Topping it off, probate court takes many months to process a will. Once probated, your will is now publicly available, and your privacy gone.

If one or more of your beneficiaries are non-residents of Canada, the task of transferring wealth is a complex, costly, and overwhelming process. For example, the executor is required to withhold a non-resident tax that, in some incidents, is up to 25% of the gross income.

With a segregated fund, your beneficiary residing in or outside Canada will receive all the gross proceeds, bypassing probate and withholding taxes.

With an estate plan, we can harmonize your intentions to that of your will. We can ensure privacy, efficient wealth transition, provide income to heirs and ensure the funds are available to pay outstanding financial obligations, including the CRA.

Feel good knowing that you have ensured a tax-efficient wealth transition to your beneficiaries.