An estate plan can help you reduce taxes, so as much of your estate as possible goes to your heirs, rather than to
Taxes must be paid by your estate on any taxable income you earn in the year of your death. This includes employment
income, investment income, realized capital gains, Old Age Security of Canada Pension Plan Benefits, income from RRIF's, etc...
Taxes on Investments
Quite possibly, the largest burden on your estate at your death may be the taxes owing on your assets - your business
or farm, vacation property, savings, RRSP's or other investments.
The Income Tax Act allows you to transfer certain assets to your surviving spouse and defer the tax until his or her
death. If this provision does not apply to you, all your property and investments will be treated for tax purposes as if
you sold them at their fair market value immediately before your death. This increases the potential tax cost and decreases
the value of your estate. Without a means to pay these taxes, there will be signifigantly less of your estate left for your