Tax and Estate Planning

Designing your plan for family and estate protection

  • An effective estate plan ensures and individual's personal property is managed effectively while they're alive and also that their wishes, such as distribution of assets and minimization of taxes are carried out following their death

The goals of estate planning includes:

  • Preserving wealth
  • Reducing taxes and estate fees
  • Supplementing income for retirement or for supporting dependents
  • Ensuring equity in estate distribution
  • Family harmony

Your estate plan will serve as a road map to guide others in handling your affairs and finances after you die. Preparing an estate plan now will help protect your family's financial well being.

The importance of estate planning:

  • Estate planning is one of the most important things you can do to help protect your family and your legacy. The purpose is to ensure and individual's personal property is managed effectively while you're alive and your wishes are carried out after your death, namely, distributing your assets in an orderly fashion and reducing taxes

What is estate planning?

  • An estate plan directs others on how to handle your affairs and finances after you die. It tells them how to distribute your assets, including money, property and other possessions. It will help to ensure that your estate is divided according to your wishes, rather than the government's wishes. And, it can help you reduce taxes, so more of your estate is left for your heirs
  • An estate plan offers benefits during your lifetime. The products you may use to support your plan may also help you accumulate savings for retirement and take advantage of tax savings opportunities. They may also help you maintain your lifestyle if you become ill or disabled for a lengthy period. An estate plan is part of your overall financial plan

If you die without a will, here's what happens to your assets:

  • Your estate may be divided in a way your may not have wanted
  • Someone will be appointed to administer your estate, rather than you choosing the person you want
  • Your assets may be frozen, which means no one has access to money or property until the estate is settled
  • A minor's inheritance may be frozen until he or she reaches the age of majority
  • Your estate or your heirs may have to pay more taxes
Province Spouse Only Children only Spouse plus one child Spouse plus children
Alberta All to spouse All to children First $40,000 to spouse, balance split equally First $40,000 to spouse; 1/3 balance to spouse;
2/3 to children
British Columbia All to spouse All to children First $65,000 to spouse, balance split equally First $65,000 to spouse; 1/3 balance to spouse;
2/3 to children
Manitoba All to spouse All to children Either all to spouse or greater of $50,000, or half of the estate to spouse plus half of balance to spouse and half to children Either all to spouse or greater of $50,000 or half of the estate to spouse plus half of balance to spouse and half to children
New Brunswick All to spouse All to children Marital property to spouse; balance split equally Marital property to spouse; 1/3 balance to spouse;
2/3 to children
Newfoundland
and Labrador		 All to spouse All to children Split equally 1/3 to spouse;
2/3 to children
Northwest Territories /
Nunavut		 All to spouse All to children First $50,000 to spouse; balance split equally First $50,000 to spouse; 1/3 balance to spouse;
2/3 to children
Nova Scotia All to spouse All to children First $50,000 to spouse; balance split equally First $50,000 to spouse; 1/3 balance to spouse;
2/3 to children
Ontario All to spouse All to children First $200,000 to spouse, balance split equally First $200,000 to spouse, 1/3 balance to spouse;
2/3 balance to children
Prince Edward Island All to spouse All to children Split equally 1/3 balance to spouse;
2/3 balance to children
Quebec All to spouse All to children 1/3 to married or civil union spouse; 2/3 to child 1/3 to married or civil union spouse; 2/3 to children
Saskatchewan All to spouse All to children First $100,000 to spouse; balance split equally First $100,000 to spouse; 1/3 balance to spouse,
2/3 to children
Yukon All to spouse All to children First $75,000 to spouse; balance split equally First $75,000 to spouse; 1/3 balance to spouse;
2/3 to children
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