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What is an estate plan Ontario?

What is an estate plan Ontario?

Estate planning is a road map for how your assets – both money and property – will be distributed after you die. It also defines how other important personal matters will be handled according to your instructions. This can include who will take care of any minor children or pets.

Is it better to have a will or a trust in Canada?

A will ensures that your heirs get exactly what you want them to get, but a trust can simplify the process of transferring these assets to your heirs.

What are four things to consider in estate planning?

A will, a durable power of attorney, advanced medical directives and a trust are four essential documents designed to ensure that your desires are met and that your loved ones can smoothly navigate the process. The information provided here is not legal, investment, tax or financial advice.

What are the four must have documents?

This online program includes the tools to build your four “must-have” documents:

  • Will.
  • Revocable Trust.
  • Financial Power of Attorney.
  • Durable Power of Attorney for Healthcare.

How do you avoid probate in Ontario?

How to avoid probate in Ontario

  1. Tip 1: Name the key beneficiaries on all your life insurance policies.
  2. Tip 2: Hold assets in cash only or bearer certificates.
  3. Tip 3: Designated beneficiary Assets Accounts.
  4. Tip 4: Joint Ownership.
  5. Tip 5: Gifts.
  6. Tip 6: Create a Trust Fund.
  7. Tip 7: Transfer assets to Limited Company.

What are the disadvantages of a living trust Canada?

Disadvantages Of A Living Trust Trusts are more complicated to prepare than wills and generally require the help of a lawyer. It is also necessary to transfer the assets to the trust. Depending on the number and type of assets involved, this might be quite expensive.

How do I avoid inheritance tax in Canada?

The truth is, there is no inheritance tax in Canada. Instead, after a person is deceased, a final tax return must be prepared on income they earned up to the date of death. Any monies owing are paid out from the estate assets before the remaining funds are transferred to the various beneficiaries.

What not to put in will?

Here are some items that you should never put in your Will:

  • Business interests.
  • Personal wishes and desires.
  • Coverage for a beneficiary with special needs.
  • Anything you don’t want going through probate.
  • Certain types of property.

How do I organize my estate documents?

5 Steps to Organize Estate Documents for Your Executor

  1. Step 1: Create a checklist of important documents (and their locations)
  2. Step 2: List the names and contact information of key associates.
  3. Step 3: Catalog your digital asset inventory.
  4. Step 4: Ensure all documents are organized and accessible.

What assets are not subject to probate in Ontario?

What Assets are Not Subject to Probate in Ontario?

  • Real estate (outside Ontario)
  • Real estate within Ontario that was converted to land titles after purchase by the deceased owner and that has not had any “dealings” since.
  • Assets that were held jointly (there are exceptions)
  • CPP death benefit.

Do bank accounts have to go through probate Ontario?

The following assets are NOT subject to probate in Ontario. Assets that pass by beneficiary designation do not need to be probated, such as Jointly owned bank accounts, RRSPs, RRIFs, TFSAs with a named beneficiary other than ‘Estate’. Insurance proceeds paid to a named beneficiary other than ‘Estate. ‘

Where can I find a free estate planning checklist in Canada?

The Government of Canada offers a free estate planning checklist online. However, there are many things to consider when preparing an estate plan and this is something an experienced wills and estate lawyer can assist with.

How does Bill 245 affect estate planning in Ontario?

Another spousal change to Ontario estate planning as a result of Bill 245 relates to separated spouses. If spouses are separated, but not yet divorced, at the time of a testator’s death, the surviving spouse will have no default property rights.

How is an estate divided in Ontario when there is no will?

The rules for how an estate is divided in Ontario when there is no will (intestate succession) can have some shocking consequences. Remarkably few people are aware that if you die without a will: Your common law spouse inherits nothing. Zero. (They might have a claim for support, but that is a very different thing).

How much does it cost to probate a will in Ontario?

Ontario probate taxes are actually quite low: approximately 1.5%, so on a $1M estate approximately $15,000. In contrast, using ‘beneficiary designations’ (on insurance, RRSPs, RRIFs, etc.) or “joint tenancy” (houses, bank accounts) to try to avoid probate often ends up costing far more than $15k in grief, unexpected income taxes, and legal fees.