Death and taxes. Everything living has an expiry date and the Canada Revenue Agency (CRA) will always get their money; bankruptcy doesn’t excuse the money you owe to CRA.
No one wants to talk about estate planning or hear about it. The CRA loves this because this means they get more of your money. Estate planning is essentially planning the transfer of wealth. If you have a spouse all your wealth can easily be transferred to the surviving spouse without paying any taxes – yet. The taxes will be deferred until the survivor passes away, increasing the final tax bill. The final tax bill will diminish the value of your hard work before you can transfer the wealth to your loved ones.
How do we successfully transfer wealth? I want you to picture you on one side and your heirs on the other. In between the two of you is a river, the CRA.
Option one, no estate plan, you can carry all your assets through the river, you will slip and fall and it is going to be exhausting. Once you get to the other side you will have to go back the same way. You may lose 50% of your assets: investments, real estate and anything of value. Option two, with an estate plan, you can plan to build a bridge over the river. You will successfully bring over the assets to your heirs, effortlessly. You will have to pay for the bridge, which will go to the CRA. The cost of the bridge will be a fraction of the cost.
Plan to build your bridge; your loved ones will thank you.