When Someone Dies, What Happens with Their Property & Taxes?
When a person passes away, their assets are typically frozen until an estate grant has been obtained and the required taxes have been paid. On your death, the Canada Revenue Agency treats it like you sell everything you own on the date of your passing to your estate. This ‘deemed disposition’ will trigger all of your accrued capital gains, and subject the balance in your RRSP/RRIF to income tax.
The overall goals of estate planning are to:
- Avoid your assets being frozen on your passing;
- Reducing or eliminating the taxes payable as a result of your passing; and
- Preventing your wishes from being challenged in Court after your passing.
This is a complicated process that can involve discussions of trusts and corporate vehicles and can involve many professionals, including your accountant, insurance provider, financial planner/advisor, among others.
We Can Help With Property and Tax Concerns After Death
It’s important that you have one professional leading the discussion on your estate plan, and coordinating efforts between the professionals involved to create the perfect plan for your situation. We are able to assist with implementing your estate plan, including:
- Drafting Trust Deeds;
- Documenting corporate transactions and restructurings (estate freezes, etc.); and
- Transferring title to real estate.
The legal experts at Munro & Crawford can help you deal with any estate planning concerns that you may have. Our lawyers are experts in their field and are devoted to helping clients navigate tax procedures with ease.