Media Release – 6th edition of You Can’t Take It With You: Common Sense for Canadian is now available

Front cover of You Can't Take It With You by Sandra E. Foster
Front Cover of 6th edition of You Can’t Take It With You: Common-Sense Estate Planning for Canadians by Sandra Foster

Traditionally, estate planning meant having life insurance and a will. The modern estate plan ultimately arrives at the same conclusion—to distribute your assets and property as smoothly and tax-effectively as possible to your beneficiaries—while respecting the rights of family members under family law. Certain strategies traditionally accessed by only the wealthy are available today by more Canadians.

The revised and updated 6th edition of the national best-selling You Can’t Take It With You: Common-Sense Estate Planning for Canadians (Headspring; January 2017; Retail $31.95; Paperback) gives you the goods on changes in taxes and regulations, new developments in estate mediation, new information on power of attorney for health care and on compassionate care benefits, and more content for people who are single, childless, or part of a young couple. Continue reading “Media Release – 6th edition of You Can’t Take It With You: Common Sense for Canadian is now available”

5 Reasons to Apply for the Disability Tax Certificate

By Sandra Foster January 25, 2017

Fern Among Rocks in Scotland

Canada Revenue Agency (CRA) estimates that about a million Canadians may be eligible for the disability tax credit certificate (DTC)—and not yet applied for it. Some people picture children or young adults as the primary recipients of the disability tax credit, but many seniors and others may also qualify.

If you or a family member are eligible and have not yet applied to be approved for the DTC, you could miss out on the ability to: Continue reading “5 Reasons to Apply for the Disability Tax Certificate”

The Cost to Die Has Gone Up

On death, even the middle class could end up in the new 33% tax bracket, perhaps for the first time in their life, or death. Finance Minister Bill Morneau’s announcement that increases the top federal tax bracket from 29% to 33% could affect anyone dying after December 31, 2015 if the taxable income on their final tax return is over $200,000—and also increases the amount of provincial tax due. But it is said, the dead don’t complain.

One way anyone who has a spouse or common-law partner can defer a portion of their tax bill on death by transferring, or rolling over, certain items to their surviving spouse or common-law partner. However, on death of the last surviving spouse or common-law partner in a relationship, or for anyone who is single, the value of any registered plan—such as an RRSP or RRIF—is added to the deceased’s final tax return. As well, the taxable portion of any capital gains (that is, of the profits) on investments, vacation properties that are not considered a principal residence, and certain other assets are also be added to the deceased’s final tax return. The portion of the taxable income over $200,000 will be taxed at 33%.

January 1, 2016 also brought us additional tax changes that affect the estate plans of the middle class such as the graduated rate estate (GRE). It also introduced the qualified disability trust (QDT) for beneficiaries who qualify for the disability tax certificate and receive their inheritance in a testamentary trust.

© 2017 — All Rights Reserved Sandra Foster — Financial Intelligence™