Strategic Wealth Blog

When you pass away, your RRSP is treated as if you cashed it out the day before your death. This is called a deemed disposition. The full fair market value of your RRSP is added to your final income tax return, which can create a big tax bill.

If you’re searching how to avoid probate in Ontario, you’ve probably been told that you need to get a trust. But this isn’t the best option for every situation. In fact, trusts are just one of a few strategies that you can use to avoid probate.

A capital gain happens when you sell or are deemed to have sold a property or investment for more than you paid for it. 

How much is estate tax in Ontario? It’s important to know that while there is no estate tax in Ontario, there are probate fees and capital gains taxes upon death. This can add up to a significant tax hit when someone dies.

If you’re a business owner or own multiple properties, there are additional considerations that could significantly impact how much tax your estate pays and how efficiently your assets are transferred.

Living trusts can be a good idea if you want to avoid probate, keep financial matters private, and have assets managed effectively during incapacity.

While family trusts can be powerful estate planning tools, they do come with challenges. They can be expensive to set up and require ongoing legal and accounting support, which makes them less practical for smaller estates.

This Ontario estate planning checklist is for anyone who wants to organize their assets, protect loved ones, and reduce stress for their family.