After working extensively for years and amassing considerable wealth, you will want your assets to go to your family members. Inheritance laws are all about that. While the laws in Canada are fairly simple, people still have issues in managing their assets. Every individual’s situation is absolutely unique, and it is relevant that you speak to avocat succession Litvack Dessureault LLP for bespoke advice. An attorney can explain inheritance tax laws and estate planning tools and guide you in executing your will effectively after your death.
What does inheritance include?
Inheritance can include real estate investments, financial bonds, cash, possessions like jewelry, and other assets. These assets are transferred from the owner to family members upon the former’s death. For this, you need to have a valid will. If you decide to write your will on a regular piece of paper, you are begging for litigation. Ensure that you take all steps after speaking to an estate planning attorney. Inheritance is not the same as a gift. Gifts can be passed to beneficiaries when the estate owner is alive, while inheritance is passed after death.
Who can inherit your properties and assets?
You have the right to decide the beneficiaries for your estate. You can include the names of your children, spouse, grandchildren and other family members. You can plan effectively for tax-free transfer of assets to the desired beneficiaries. Regarding cash and bonds, these liquid assets can be transferred to beneficiaries directly. However, the trust will be taxed upon your death, but the beneficiaries don’t have to pay tax on inheritance. Other assets, which are considered non-liquid assets, such as real estate and cars, are not taxed. The government will tax the non-liquid assets, and the executor will have to file a final tax return to the CRA, clarifying that all relevant taxes have been paid.
Other things to know
The probate process is pertinent for all wills, and one of the better ways to expedite the process is to have a small estate. Of course, this may not be feasible for everyone. If you die without a will, the Succession Law Reform Act will determine how your next of kin files for inheritance. The intestacy laws will determine how the assets are divided among the family members. If the estate doesn’t have immediate beneficiaries or contenders, the estate will go to the government.
Get a Will and Estate Lawyer as soon as possible and discuss the best ways to create an estate plan to address your goals.