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ESTATE PRESERVATION

People spend a lifetime accumulating assets, but very little time managing and conserving them. Learn how to preserve your estate and ensure your heirs benefit from their full value. Understand the taxation at the time of death, especially on capital gains and RRSP/RRIF. Explore the alternatives to sell assets or use current estate liquidity and discover how using life insurance can be a more cost-effective solution. Don't let your family's losses become someone else's fortune.

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ESTATE PRESERVATION

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  1. ESTATE PRESERVATION

  2. People spend a lifetime accumulating assets, but very little time managing and conserving those assets Estate Management

  3. Once you have accumulated various assets, do you eventually want your heirs to benefit from their full value? Asset Preservation Strategies

  4. How can you ensure your estate goes NOT Revenue Canada (CCRA) To Your Family

  5. Two major areas of taxation will arise at time of death Tax on capital gains Tax on RRSP/RRIF Taxation at Death

  6. Tax on the increased value of capital assets from: Cost or V-Day Value to Actual sale or deemed disposition Capital Gains Tax “SUCCESS TAX”

  7. Mutual or Segregated Funds Investment portfolio Non principal residence Real Estate Shares of a privately held company Farming assets Types of Capital Assets

  8. CAPITAL GAINS TAX Who Bears the Tax Burden?

  9. Tax on R.R.S.P. Funds or R.R.I.F.

  10. RRSP/RRIF Tax Flow Chart $ No Tax 1st Spouse’s Death 2nd Spouse’s Death Taxed Probated Heirs $150,000 $200,000 $100,000

  11. Lump Sum Tax Liability RRIF RegisteredRetirementIncomeFund

  12. How will your estate liabilities be paid? From your estate For your estate Tax Which would you prefer?

  13. Options to pay tax liability From Your Estate Save Money Borrow • Sell Assets For Your Estate: • Estate Clearance Fund

  14. But ... What are the consequencesof the alternatives?

  15. Selling assets or using current estate liquidity Using life insurance Let’s Compare and

  16. Many people will say that the estate can sell off assets to create liquidity or use current liquid assets That’s fine, but what will it cost your heirs? From Your Estate

  17. If capital (or liquid) assets are sold or used, the actual cost is Lost capital Lost revenue Lost growth Don’t let your family’s losses become someone else’s fortune! Actual Cost

  18. $250,000 at 8% would grow to From Your Estate 10 Years 20 Years $539,731 $1,165,239 For Your Estate Cost of estate clearance fund $3,332/Year $284/Month Which Makes More Sense?

  19. “Three Figures” $250,000 $539,731 $284/month Current Tax liability Projected loss over 10 years Current Solution

  20. Success Taxes Desjardins Financial Security Pay $284/month Estate receives $250,000 to pay taxes Jones Mutual Premiums deferred Pay $250,000 from estate assets Company While Alive At Death of Survivor

  21. Instead of letting your best assets be sold (or sacrificed) to meet your estate liabilities, why not let your best assets create the required fund to pay off the liabilities?

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