Are you an executor and need help with an estate? Edward & Manning can help in this difficult time.
Property accumulated during one’s lifetime will eventually be transferred at some point; death can trigger a significant income tax bill that, if not properly planned for, can leave an unexpected liability when a loved one passes away. Estates and trusts are two of the ways by which individuals can transfer their wealth in a tax efficient manner with proper planning.
This process is difficult to handle, especially under the circumstances in which they arise. Our professional approach can provide you with the comfort that is needed in this difficult time.
Edward & Manning has extensive experience in advising individuals and families on trust and estate planning matters. We provide objective, independent advice to help families protect their assets and balance the interests of beneficiaries. Edward & Manning can assist with the following estate events:
Estate planning – Edward & Manning can assist with an asset review in an attempt to streamline the estate process with a few to reduce the overall tax burden.
Terminal tax return – this is a final personal tax return up to the date of death. The significant difference from a traditional personal return is that all assets are treated as being disposed of on the date of death. This means that any increases the fair value of RRIFs, investments, second properties need to be recorded on this return and income taxes paid.
Income treatment in the Estate – Once the assets are held by a trust, there is often times income that continues to be earned. This income can be kept in the trust and taxes paid, or can be distributed to beneficiaries. There can be a tax advantage to distributing the income as a trust tax rate often higher than the beneficiaries.
Estate return – If there is income in the trust, a return is required to be filed annually, as well as slips for individuals if this income is distributed.
Clearance certificates – To ensure there are no further outstanding tax matters, CRA will issue a clearance certificate indicating the taxpayer and estate accounts are closed. This gives comfort to the executors of the estate that the remaining assets can be distributed without any risk.
Distribution calculation – When there are multiple beneficiaries, keeping information transparent is important. Have Edward & Manning prepare the calculation of distributions of behalf of the executor can help.