Estate Planning & Its Advantages

Estate planning is about the life of your family and loved ones – and the peace of mind you get from helping to preserve their financial security. Property planning is a difficult subject to discuss by its very nature, – even more so to plan for because it forces us to come to terms with our own mortality. Yet it’s something you need to talk about openly with your loved ones today because you can’t do so after you’re gone – or after they’re gone. Each person will approach estate planning differently, with personal motivations and expectations. No estate plan will be exactly like another. Estate planning should be a reflection of your personal priorities and choices.

Estate planning advantages

• It distributes your assets as you intended; provides funds to cover funeral expenses, as well as immediate and/or long-term family living costs
• Keeps more of your money in the hands of your heirs
• Minimizes income tax and probate fees (no probate fees in Quebec); designates charitable gifts; declares your personal care preferences, including terminal medical treatment and organ donation intentions
• Provides for the tax advantages of income splitting
• Ensures business continuity for business owners
• Identifies the people chosen to carry out your last wishes and care for your children

Generally, Canada is viewed as a country with no estate tax. While that's true, what many people don't realize is that a deemed disposition tax, which is similar to an estate tax, applies when you die. Deemed disposition tax is so-named because your investments are deemed to be sold at death. Any capital gains triggered by their sale are included in a final income tax return filed in the year of death. A final tax return also includes the value of any retirement accounts and income received from stocks, bonds, real estate investments and even life insurance proceeds in the year of death, from January 1 up to the date of death. With Canadian federal income tax rates of up to 29%, this final taxation can be substantial. Provincial taxes and probate fees also apply.

The good news is the tax is deferred if the assets are transferred to a surviving spouse. Taxes are deferred even if the assets are held in a spousal trust, which provides income to the surviving spouse. However, if the spouse sells the assets, then the tax applies. When the spouse dies and the assets are passed on to other heirs, 50% of the capital gains of any stocks, bonds, real estate investments and other assets are taxable at the personal income tax rate.

Property planning is a complex matter so you can take help of a professional. Working closely with your Toronto tax accountant, you’ll find the estate planning process to be liberating. It will provide you with the peace of mind that comes from knowing your loved ones will not be burdened by resolving your personal and financial affairs.

Choose an Expert Toronto Tax Accountant to Help you with Tax Matters

No one can help you better than a Toronto tax accounting firm when it comes to tax assessments. With their help, the data related to taxes and other important details are present in an accurate and comprehensible manner. One can always gain from specific services such as tax consulting and there are plenty of established firms in Toronto offering their consulting experience. Picking one is a difficult job but one must always choose the firm with a reliable and experienced team.

The firms in Toronto which are specialized in tax accounting also deal with cross border accounting. For them, having more to offer means much more for you to gain. They can aid with financial statements, offer tax strategies for small businesses and deal with cross border accounting and taxes. They have the ability to joggle with so many branches, having at the same time the needed energy to provide strong financial support.

Consulting the experts is the best method you can use to get the best of tax preparation. The tax accountants in Toronto could be the best place to start. Toronto tax accountant know how to address financial information and use his/her decision-making skills towards achieving their goals. They deal with financial, management and tax accounting, the last one being mainly used for interested customers to follow tax regulations. Certified experts can help with financial statements and audit records, always ensuring that the main principles of accounting are respected.

Toronto tax accountant specializes in matters of tax. A person that works in this area may focus on aiding individuals, small businesses and or corporations. A tax accountant that specializes in business may also provide consultation services to assist with decisions that may impact income taxes.

These experts might operate as a sole proprietor or as part of a small or large accounting firm. Both a large and small accounting firm can provide identical services. However, large accounting firms can often be much more expensive. There are benefits to dealing with either, selecting the best fit for you is a personal choice.

However, finding the best tax consulting expert in Toronto can take some time and effort to qualify the one that is right for you. With a little effort you can find one who is reliable, competitively priced, and easy to communicate with and delivers the best results for your income tax return. When looking to hire a professional income tax preparation expert, you can talk to friends, family or colleagues and see who has the most impressive testimonials. Another option is to do an online search.