1. ESTATE PRESERVATION

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

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

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

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

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

7. Types of Capital Assets  Mutual or Segregated Funds  Investment portfolio  Non principal residence Real Estate  Shares of a privately held company  Farming 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 $ 1st Spouse’s Death 2nd Spouse’s Death Heirs No Tax Taxed Probated $150,000 $200,000 $100,000

11. Lump Sum Tax Liability RRIF Registered Retirement Income Fund

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

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

14. But... What are the consequences of the alternatives?

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

16. From Your Estate  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?

17. Actual Cost  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!

18. From Your Estate  $250,000 at 8% would grow to 10 Years20 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 Company While Alive At Death of Survivor Desjardins Financial Security Pay $284/month Estate receives $250,000 to pay taxes Jones Mutual Premiums deferred Pay $250,000 from estate assets

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?