Tax structured Last Will
A tax structured last will and testament minimizes taxes owing on death of the testator.
WILL & ESTATE PLANNING: Important Considerations
When setting up an estate plan the entire estate is examined, and the last will and testament is drafted to minimize overall tax liability. Insurance may be purchased and an estate freeze is often carried out.
WILL & ESTATE PLANNING: Main Purpose
The purpose of estate planning is to minimize taxes on death. A key component is often an estate freeze.
Drafting your will?
When drafting your will you can carry out income splitting for your beneficiaries by setting up multiple testamentary trusts, each one of which will be taxed as a separate taxpayer.
RRSP and RRIF donations from estates
RRSP and RRIF donations from estates can be transferred to a charity without incurring any tax and can be claimed by your estate for a tax credit of up to 100% of your income in that year.
Name your estate rather than a charity as an RRSP or RRIF beneficiary
Name your estate rather than a charity as an RRSP or RRIF beneficiary otherwise no tax credit will be available to offset the Canadian income tax your estate will have to pay for the amount of the donation. By leaving instructions in your will that the money should be transferred to one or more named charities you will ensure that your estate gets the benefit of the tax credit for your donation.
Consider income taxation when creating a will
It is important to consider income taxation when creating a will to ensure that you properly allocate your estate among your beneficiaries on a post tax basis.
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."