1. ESTATE PRESERVATION

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

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 estate goes
NOT
Revenue Canada
(CCRA)
To Your Family

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 “SUCCESS 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. Who Bears the Tax Burden?
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
No Tax
2nd Spouse’s
Death
Taxed
Probated
Heirs
$150,000
$200,000
$100,000

11. Lump Sum Tax Liability RRIF
Registered Retirement Income Fund 11

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

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

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

15. Selling assets or using current estate liquidity
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 For Your Estate 10 Years 20 Years $539,731 $1,165,239
$250,000 at 8% would grow to
10 Years
20 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 Desjardins Financial Security Jones Mutual Company
Pay $284/month
Estate receives
$250,000 to pay taxes
Jones Mutual
Premiums deferred
Pay $250,000
from estate assets
Company
While Alive
At Death of Survivor

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?