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Difference between revisions of "Preparing a Will and Estate Planning"
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Preparing a Will and Estate Planning (view source)
Revision as of 16:07, 2 April 2015
, 16:07, 2 April 2015→What are some aspects of estate planning?
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:However, note that several recent court rulings have seen a jointly-owned asset returned to the estate. If your joint asset is not with your spouse or a minor child but instead with an adult child or other adult, then that joint holder may in fact own the asset in trust for you. This can be avoided by clear documentation showing your intent to give the property to the surviving joint owner at the time he or she becomes a joint owner with you. For example, if you add an adult son to your bank account as a joint holder and you want the account to belong to him when you die, you should sign a deed of gift. Otherwise, it may be presumed that your son holds the bank account in trust for your estate and the money will be paid out according to the terms of your will. It is very common for an older person to have an account in joint ownership with one of their children on the understanding that the account is being held in trust for all the children, when the parent dies. | :However, note that several recent court rulings have seen a jointly-owned asset returned to the estate. If your joint asset is not with your spouse or a minor child but instead with an adult child or other adult, then that joint holder may in fact own the asset in trust for you. This can be avoided by clear documentation showing your intent to give the property to the surviving joint owner at the time he or she becomes a joint owner with you. For example, if you add an adult son to your bank account as a joint holder and you want the account to belong to him when you die, you should sign a deed of gift. Otherwise, it may be presumed that your son holds the bank account in trust for your estate and the money will be paid out according to the terms of your will. It is very common for an older person to have an account in joint ownership with one of their children on the understanding that the account is being held in trust for all the children, when the parent dies. | ||
*RRSPs, RRIFs and TFSAs: A Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF) and Tax Free Savings Account (TFSA) all allow you to designate a beneficiary to get the proceeds when you die. If you name a beneficiary and he or she survives you by at least five days, the proceeds pass outside your will to that beneficiary. For example, an RRSP beneficiary will get the money in the RRSP directly from the company holding the RRSP, and not from the estate. | *'''RRSPs, RRIFs and TFSAs''': A Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF) and Tax Free Savings Account (TFSA) all allow you to designate a beneficiary to get the proceeds when you die. If you name a beneficiary and he or she survives you by at least five days, the proceeds pass outside your will to that beneficiary. For example, an RRSP beneficiary will get the money in the RRSP directly from the company holding the RRSP, and not from the estate. | ||
*Life Insurance Policies: Life insurance policies allow you to designate a beneficiary to receive money at your death. Again, this money passes outside your | |||
*Trusts: Depending on the size of your estate, you may want to establish a trust, which can protect your estate against a wills variation claim. | *'''Life Insurance Policies''': Life insurance policies allow you to designate a beneficiary to receive money at your death. Again, this money passes outside your will and does not pass as part of the estate; this means that the life insurance funds are not used to pay off the debts of the estate. | ||
*'''Trusts''': Depending on the size of your estate, you may want to establish a trust, which can protect your estate against a wills variation claim. | |||
*Charitable Gifts: You can reduce the income tax liability arising on the deemed disposition of your assets on your death by making charitable gifts in your will. | *Charitable Gifts: You can reduce the income tax liability arising on the deemed disposition of your assets on your death by making charitable gifts in your will. | ||