Intergenerational wealth transfer means planning how your assets pass to your children and grandchildren. With the right plan, more of what you’ve built reaches your family, and less goes to taxes and delays. In Canada, there’s no gift or estate tax as such. However, the deemed disposition rule can create a large tax bill at death, so planning ahead matters. The CRA explains the basics in its guide to doing taxes for someone who died.
A will and a clear estate plan set out who receives what. In addition, trusts can help manage and protect assets for younger or vulnerable beneficiaries.
A permanent policy provides tax-free cash at death to pay the tax bill, so your family doesn’t have to sell assets. It can also equalize an estate among heirs or fund a charitable gift.
If you own a business, a succession plan helps you pass it on smoothly. Moreover, it can include strategies to manage capital gains tax on the transfer.
Canada has no gift tax. Even so, gifting assets other than cash can trigger capital gains tax, so it’s worth getting advice before you give.
Our experienced consultants can help you:
Contact Nova Star Insurance Consultants today to discuss your wealth transfer plans. The first conversation is free, with no obligation.
No. Canada has no inheritance tax or gift tax. However, when you pass away, the CRA treats most of your assets as sold, which can trigger capital gains tax. Registered accounts, like RRSPs, may also be fully taxable unless they pass to a spouse.
A permanent life insurance policy pays a tax-free death benefit to your beneficiaries. As a result, it can pay the tax bill at death, so your family keeps assets like a cottage or business. Some policies also build cash value over time.
The earlier, the better. Insurance costs less when you’re younger and healthier. Also, starting early gives you more options and more time for your plan to work.
Yes. A complete plan usually involves a lawyer for your will and trusts, an accountant for tax planning, and an insurance advisor for the coverage. We work alongside your existing advisors, or we can introduce you to trusted professionals.
At Nova Star, you get attentive service and close attention to detail. Our team takes the time to understand your family and your goals. Call or email us with any questions, and we’ll get back to you within one business day.
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