Estate Tax Planning is a crucial element in your overall succession and investment planning. We believe it is the least understood topic with more urban legends attached to than any other area. We hear all the time that the Government will take up to 50% of my Estate, a huge tax grab takes place when I die, etc. Certainly, death and taxes are closely linked, however, having a better understanding of your specific liabilities will ensure that taxes are kept to a minimum and family assets, such as a cottage, remain in your beneficiaries hands.
There are three separate issues to be addressed upon death: Estate Taxes, formerly Probate Fees, Income Taxes and Capital Gains Taxes. Estate Taxes stir up the biggest levels of concern when in reality they are relatively nominal, certainly compared to other developed countries. An example might be an individual dies having been predeceased by his/her spouse. The Estate consists of a $350,000 residence, $100,000 in Canada Savings Bonds, and $50,000 in Bank GICs, a cumulative total of $500,000. What Estate Taxes are due? Well the answer is $7,000.00, based upon 0.5% on the first $50,000.00 and 1.5% on the residue - nobody likes paying taxes, however, $7,000.00 on a half million dollar Estate is not extortionate. If you would like more information on this or any other tax issue, please contact ProContinum Estate and Trust Planning Services. |
 Tax Grab
Tax Grab(GERMAN) |
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