Seven reasons to use a family trust
October 15, 2022
Providing children with spending money is just one use of a family trust. Here are seven reasons why you might consider setting one up.
Providing children with spending money is just one use of a family trust. Here are seven reasons why you might consider setting one up.
Adding a child’s name to your assets won’t accomplish your goal of reducing capital gains tax.
In 1936, the Duke of Westminster structured his affairs to allow for a deduction of an amount paid to his gardener that would otherwise not be deductible. The British tax authorities of the day didn’t like it, but the judge, Lord Tomlin, ruled that, “every man is entitled…to order his affairs so that the tax..is less than it would otherwise be.”
Insurance can be an effective tool. Here’s an idea involving insurance that can provide a tax-free source of cash flow in retirement.
When it comes to most forms of insurance, many people understand the importance of having coverage. Whether it’s your car, your home, or other valuable possessions, having insurance means that you’re financially protected should disaster strike.
Tim Cestnick writes: My wife said to me: “Tim, I’ve heard that the sun at the cottage does more damage to your skin than sun in the city”. “I think that’s a myth,” I countered. There are some other myths that come to mind when I think about the cottage. Let me share a few today.
There are tax, estate and other implications when inheriting real estate, even from family.
Naming a beneficiary of a life insurance policy provides a significant benefit in planning and protecting one’s estate. With a named beneficiary, the death benefit is paid directly to the beneficiary and is received tax-free.
Money is on the move from one generation to the next with almost $700-billion in financial assets set to transfer by 2026, according to J.D. Power’s 2021 Canada Full-Service Investor Satisfaction Study. Without appropriate planning, just imagine the tax bill.
Many people spend substantial time and effort putting together an estate plan with their attorney and then throw a wrench in it with last minute changes that can cause big problems down the road.
SWPP helps families and business owners in Ontario with comprehensive estate planning.
SWPP’s Living Estate Plan service ensures Ontario families have an estate plan or living trust that protects their assets from unnecessary taxes and fees, including probate.
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