Canada is running up quite a hefty bill to fight COVID-19. Government emergency funding has surpassed $250 billion, and this amount will likely increase as the crisis unfolds.
As our debt continues to spiral, you might be wondering how we are going to climb out of the budgetary hole the pandemic has created. Canada’s Finance Minister Morneau has assured us that tax hikes – including a GST increase – are not part of the government's immediate plans. But as the saying goes, governments have a tendency not to solve problems, only to rearrange them.
Death already triggers significant taxation for Canadians – in the form of income tax and capital gains taxes. Probate fees can also be sizeable and vary by province. Add a further inheritance tax into the mix, and Canadians could potentially see their estate values diminished even further.
There are several clever ways of protecting your estate from undue tax (current and potential future liabilities), such as trust planning and estate freezes. However, these strategies are the most effective when they complement and work in conjunction with other strategies that consider all the angles, not just tax.
Estate planning is about preparing for all future possibilities that may put your estate at risk – market downturns, potential lawsuits, divorce – not just preparing for a tax increase in isolation. For those who want to be proactive, now is the ideal point in time to map out your family’s approach via a comprehensive estate plan.
Want to know more? MacMillan Estate Planning offers a holistic approach to estate planning with all the people, processes, and technology that you need. Our team of lawyers, accountants, financial planners, and counsellors offer a refreshing alternative to the banks, law firms and accountancy firms. Register for one of our upcoming seminars, now held virtually as per government recommendations. You can also take advantage of our complimentary and virtual consultations; call us at 1-833-266-6464 to get started on protecting your estate.
