Seniors Tax Alert


 

Estate Administration Tax (Probate Fees)

The Estate Administration Tax is approximately 1 ½% of the value of one's Estate. This can represent a significant cost to the Estate. While the holding of assets as "Joint with Right of Survivorship" may help to reduce this tax, it may not be effective in all cases especially when income tax issues affect the transfer. Please consult you professional advisor to review how the Estate Administration Tax affects your Estate.

Alter-Ego Trusts and Joint Partner Trusts

Two types of trusts may be set up by individuals who are over the age of 64 that will be effective in avoiding Estate Administration Tax. These trusts are an "Alter-Ego Trust" which is set up for the particular taxpayer, and a "Joint Partner Trust" which is set up for the taxpayer and his or her spouse. These trusts may also be useful as a substitute for a Will or Power of Attorney.
We would be pleased to review your particular situation to determine whether these Trusts are suitable for your needs.

Estate Planning

We can never overemphasize the importance of having a proper Estate plan. We are aware that many financial institutions and investment advisors are offering "No Charge" estate planning services.
Take a careful look at the services being provided, keeping the following in mind:

  • Income taxes play a significant role in one's Estate. Income tax professionals have been trained in the provisions of the Income Tax Act and interpreting Canada Customs and Revenue's various administrative practices.
  • Estate planning is a multi-discipline approach. Income tax professionals can identify a problem area and co-ordinate the necessary advice from lawyers, insurance specialists, etc.
  • Income tax professionals are independent. Fees are presented up front and are not earned on hidden commissions on the sale of investments.
  • Estate planning should not be left to chance. We encourage you to discuss your concerns with your independent professional advisor before taking steps to implement your Estate plan.

"Information contained herein is of a general nature. No action should be taken without seeking professional advice that takes into account current developments and the specific facts of a particular situation."

 

 

 

Powell Jones | Chartered Accountants and Business Advisors

121 Anne Street South, Barrie, Ontario L4N 7B6 | (705) 728-7461 | info@powelljones.ca

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