Frequently Asked Questions About Wills And Estate Planning
If you are new to investing and aspects like financial planning and wealth management, you may have several questions and doubts about the industry. These may pertain to risks, costs, and your overall financial health. To clear your confusion and arm you with the information you need to make the right decisions, Westgroup Financial Management Inc. has answered some of the most frequently asked questions about estate planning. These answers are based on our experience so that you have first-hand information that gives you the power.
1. Why do I need a will?
A Will helps avoid lengthy processes and delays in the distribution of your assets. Having a Will eases the way for your nominees or legal heirs to get access to assets given to them. It also goes a long way towards avoiding family disputes.
2. How can I pass my money on to my loved ones when I pass away?
There’s more to estate planning than simply writing a will. Accounting for all of your assets and wishes will ensure your plan is executed smoothly after your death.
3. How much will my estate pay in taxes when I pass away?
The truth is, there is no inheritance tax in Canada. Instead, after a person is deceased, a final tax return must be prepared on income they earned up to the date of death. All money owed is paid from the estate assets before the remaining funds are transferred to the various beneficiaries. The estate tax is up to 6% of the estate’s net value as of the time of death.
4. What will happen to my business when I pass away?
As per Canadian law, a corporation remains in existence even if you die. It must continue to meet its obligations, including paying its employees and taxes and completing any ongoing contracts.
5. How can I ensure my estate has enough money to pay taxes in the event of my death?
Availing of life insurance is one way to ensure your estate will have enough money to pay taxes even in the event of your demise. The death benefit can be used to settle estate taxes on capital gains from property or business sales and protect retirement savings.
If you have more questions about financial planning, get in touch with the experts at Westgroup Financial Management Inc. We match your financial goals and objectives with your financial resources to help produce the results you are looking for. Our sound investment planning is a core component of building a financial plan, and we are skilled in investments and the investment planning process, so you can rest assured that your money is in safe hands.