Most Canadians expect to pay tax upon passing. Unfortunately, many Canadians are unaware of the various sources of gains/income that will be captured on their terminal tax return. Additionally, probate fees are regularly confused with income tax and can result in ‘silo probate planning’ which can lead to significant estate issues.
Regardless of your age, how long your business has been operating or any other factor you can think of, you are in the Planning Process journey. Everyone is at a different stage and has different goals.
Trusts can help you and your family realize tax and non-tax objectives. In conjunction with your wealth, tax and legal advisors, you can determine one or more trust planning options to assist you in meeting your financial, estate and tax planning needs.
The following will look at a case study involving a testamentary trust, created by the will of a resident of Canada for the benefit of non-resident beneficiaries with a non-resident trustee(s).
Making the decision to incorporate will have long-term impacts on you and your family. It is not a decision to be taken lightly. Rather, you should thoroughly weigh the pros and cons, in conjunction with applicable professionals, prior to making your decision.