Death & taxes and how do es it Mix?

Death & taxes and how do es it Mix? By Bruno Scanga Financial Columnist It is often said that only two things in life are certain: death and taxes. What is less commonly understood is how closely the two are linked. In Canada, a deceased taxpayer’s assets are treated as if they were sold at their fair market value (FMV). For high-net-worth Canadians, this deemed disposition can mean that taxes owing at death can reach into the millions of dollars. Without proactive planning, these liabilities can reduce the wealth passed to family members, beneficiaries disrupt businesses and force the sale of cherished assets. You and financial advisors should be reviewing your wealth transfer strategies and overview of the tax implications that arise upon death in Canada, This review should be done a minimum once a year and highlights planning strategies that can help reduce or defer taxes. Considerations should be given to TAXES AT DEATH The executor’s role and why advisors matter TAX TREATMENT OF ASSETS AT DEATH for Non-registered investments Registered Retirement Savings Plan (RRSP) Registered Retirement Income Fund (RRIF) Pension plans Tax-Free Savings Account (TFSA) Registered Education Savings Plan (RESP) Registered Disability Savings Plan (RDSP) First Home Savings Account (FHSA) Real estate personal and investment Private company shares Corporation ownerships A continue review will make the transfer and transition of your financial affair easier and much cost effective for your family