Wealth Transfer Planning

Planning for the transfer of your business and estate is a crucial part of financial planning.

KWB has been a key part of estate planning and tax planning for both my business and family needs. Perry McPherson, Great Circle Investments Inc.

Estate taxes can be a financial hardship on your loved ones, but with careful planning they can be reduced, and more importantly, anticipated.

At KWB, we help you and your family plan for the transfer of your estate. We can advise you on the tax implications of things like:

  • passing business and personal property on to loved ones,
  • setting up trusts for children and grandchildren, and
  • arranging donations to charitable organizations.

We will work closely with you and your family to ensure that your finances are taken care of in a smart, efficient manner, and there is no unexpected financial burden on your loved ones.

To discuss wealth transfer planning options, please contact us.

Blog posts about Wealth Transfer Planning

Jun 18 2019
Principal Residence Exemption

If you have sold your home and it is your principal residence then you should be able to use the principal residence exemption to reduce or eliminate any capital gain for income tax purposes on the sale of the property. CRA states that a principal residence can be a house, cottage, condominium, apartment, trailer, mobile

May 14 2019
Registered Education Savings Plan (RESP)

An RESP is an education savings account that is registered with the Government of Canada that helps you save for a child’s or grandchild's post-secondary education. With an RESP, you may be able to receive other saving incentives, such as the: Canada Learning Bond Basic and Additional Canada Education Savings Grant There are two different types

May 7 2019
Spousal Loan - Tax Savings Opportunity

If you are in a much higher income tax bracket then your spouse and have investments outside of an RRSP or TFSA then a spousal loan could reduce your taxes. Money that is earned directly by you through employment or investing is considered yours and can’t just be given to your spouse to invest. 

Mar 19 2019
Applying for a trust account number or asking for a clearance certificate

Asking for a clearance certificate A clearance certificate certifies that all amounts for which a deceased taxpayer is liable to Canada Revenue Agency for have been paid.  If a clearance certificate is not obtained upon a taxpayer’s death, as the legal representative, you can be liable for any amount the deceased owes.  A

Mar 12 2019
The Enlightened Investor-Retirement Income

Eventually investors move from the “saving-years” to the “drawing-years”, when they want to start drawing retirement income from their portfolios. This can be confusing. For many the natural inclination is to liquidate their diversified portfolio in favor of income-producing stocks or bonds. However, the idea that retired individuals should load up on dividend-paying common shares

Feb 12 2019
Direct Beneficiary Designation - RRSP or RRIF

If you are considering a direct beneficiary designation for either a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF), you should be aware of some negative consequences that can occur. A direct beneficiary designation can result in unintended tax consequences to the estate, the inequitable treatment of heirs or the distribution

Jan 15 2019
Capital Dividend Account

The capital dividend account (CDA) is used to track the amounts that can be paid out to shareholders, tax free. How is the capital dividend account balance calculated? Capital gains and losses – The balance increases by 50% of any capital gains your company incurs, and decreases by 50% of any capital losses your company

Jan 8 2019
US Tax Filing

Are you a US citizen? Do you spend more than 120 days per year in the US? If so you may be required to file a US personal tax return.

Dec 4 2018
Outstanding Shareholder Loan

It is very common for owner-managers to draw funds from their company during the year and find themselves with an outstanding shareholder loan at year end. These balances are often cleared up by recording dividends or bonuses to the shareholders and the problem is solved.  If the loan is not repaid during the fiscal

Apr 3 2018
Changes to the Principal Residence Exemption

The Canada Revenue Agency (CRA) made a major change to the Principal Residence Exemption that affected Canadians when filing their 2016 tax returns. Regardless of whether the sale is exempt or not, individuals are now be required to report the sale of their principal residence on their personal tax return. Under the Principal Residence Exemption

Feb 13 2018
Split Income

Proposals from the Department of Finance on July 18, 2017 included changes to the taxation of split income. The most common form of split income is income from a dividend from a related entity that is not excluded from being categorized as such. Prior to 2018, shareholders of privately held companies over the age of

Apr 18 2017
Protecting Treasured Family Assets with Life Insurance

Do you want to protect the value of your estate for your heirs and preserve those cherished family properties and other assets? If so, read on for more info.

Jan 3 2017
Changes to the Eligible Capital Property Rules Effective January 1, 2017

Eligible capital property (ECP) includes items such as goodwill, patents, trademarks, customer lists and other intangibles with no fixed lifespan. As of January 1, 2017, the new rules for eligible capital property will come into effect and will have a significant impact on tax deferral opportunities for companies that dispose of eligible capital property. Previous

Aug 30 2016
Graduated Rate Estates – New Rules for 2016

Starting for 2016 taxation years, inter vivos trusts, trusts created by will and certain estates will be subject to the top taxation rate. There are two exceptions to this change: graduated rate estates and qualified disability trusts. Graduated tax rates will still apply to these types of estates and trusts. Income earned and retained in

Jul 28 2016
The Enlightened Investor: Powers of Attorney for Property

A power of attorney for property is a written document by which a grantor appoints an attorney to act as a substitute decision maker with respect to the grantors property or financial affairs. This grant of power becomes effective immediately upon the grantor signing the document unless otherwise indicated. While a General Power of Attorney

Apr 26 2016
Estate Planning Gifting Strategy

An estate planning gifting strategy is basically when you start to give away some of your assets prior to death in order to optimize taxes within the family. Usually, an estate planning gifting strategy refers to how we will distribute our assets when we die.  But you might be overlooking significant tax savings by not

Feb 23 2016
Why should I review my Unanimous Shareholder Agreement?

If you haven’t reviewed your Unanimous Shareholder Agreement (USA) recently, here are 3 excellent reasons why you should do so:  In 2006, the Federal Budget introduced a second dividend rate. Corporate earnings in Alberta, up to $500,000 are taxed at 14%; when a dividend is paid to an individual shareholder this “ineligible-dividend” is taxed

Jan 21 2016
Charitable Giving

If charitable giving is something that you are interested in and you want to see the tax benefits obtained recently by one of our clients, read on for more information.

Dec 15 2015
The Enlightened Investor:Calculating the Cost Base of a Security Held in Multiple Taxable Accounts

Congratulations! You just sold and realized a profit on that promising investment (stock, mutual fund, ETF etc.). When you’re done planning how to spend your windfall you might also consider how much tax you owe on that gain. Unless the sale occurred within a non-taxable RSP or TSFA. Normally, this is fairly straightforward. You

Oct 20 2015
The Enlightened Investor: What is meant by “market return”?

The investment industry and media often refer to the “market” and the “market return”. Or that the market was up or down on the day and that a portfolio manager's return outperformed or underperformed the market return. So what exactly do they mean and how does it relate to you? The market generally refers to

Sep 29 2015
The Enlightened Investor - Moving Small LIRA’s to Your RSP

When you have a job transition, you may transfer your pension plan savings to a locked-in-retirement account (LIRA). LIRA’s are similar to Retirement Savings Plans (RSP’s) but with more restrictions. Adding another investment account will also add extra administration to managing your retirement savings. Alberta pension legislation allows people age 50 or older to transfer

Mar 26 2015
The Enlightened Investor: Is Your Portfolio Leaking Tax?

It may be obvious to state that an investor only keeps the after-tax return. It is less obvious how to minimize the tax leakage from your portfolio. A good starting point is to identify the two primary causes of tax; portfolio turnover and an inefficient portfolio structure. Taxes resulting from portfolio turnover can cost you

Oct 8 2012
Converting Your Business into Cash with Life Insurance

In the second part of our life insurance series you will find out how to help your estate access the wealth represented by your shares in your business and your shareholder loan through the proper use of insurance.

Jul 27 2012
The Value of Advice

What is the value of advice? When it comes to portfolio management, the overall value of the advice can be measured by comparing the performance of one portfolio over another in a specific amount of time. However, when it comes to wealth management, the overall value of the advice discussed regularly with clients is much more difficult to measure. Read on to see some real life examples of the value of the advice given.

Jul 16 2012
Life Insurance Creates an Estate Value

Life insurance has many applications and in this first of a 3 part series you will see how it creates an estate value when little to no value previously existed. To learn more, read on.

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KWB was able to assess one of my businesses and identify a federal tax credit that we could apply for that neither my former accountant, my partner, nor I had known of. We reclaimed nearly $100,000. That was huge for us!

 

Brent Haydey

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