Skip to main content

Seniors Financial Planning

End of life financial planning can significantly reduce the number of hours your loved ones will have to spend completing paperwork once you pass. To help your loved ones out, this is one of the key things you must do. The average inheritance in Canada is around $100,000. But, to ensure your nearest and dearest benefit from this money you need to be clever with the way you plan your end of life finances.

Importance Of Designated Beneficiaries

Probate fees vary across Canada, with Nova Scotia, Ontario, and British Columbia having the highest charges. Your loved ones needn’t be caught up in excess probate if you get things organized before your death.

Some bank providers allow individuals to name a beneficiary on their account. When you pass away, any cash in your account automatically becomes theirs  so they don’t need to wait months to gain access to the cash.

You can also assign beneficiaries to other assets, including life insurance policies and registered investment products. If you forget to do this before you die, the cash in these accounts automatically becomes part of your estate and must go through the probate process.

Canadian Inheritance Tax – Estate Tax

Unlike many other countries, there is an inheritance tax in Canada, which is sure to be a relief to you and your family. When you’ve passed away, it will be your family’s responsibility to file a tax return and pay any outstanding income tax.

This tax bill can come out of your estate. Your loved ones may wish to use a tax preparation service to help them complete this process and to check the tax they’re due to pay is all that’s outstanding.

In the end of life stage, it’s handy to keep an up to date spreadsheet listing all your income, including your pension, and share it with the executor of your will, so they can easily complete your tax form when you pass. Make sure you pay any outstanding tax from previous years too as this will stop your loved ones from being fined and financially losing out.  

Planning your funeral

Vice reports that just 10% of people aged 55 and over plan their own funeral. Yet, there is one big advantage in planning and paying for your own funeral in advance; cost.

When you choose a guaranteed plan, the price you pay for items such as a casket is the final price. So, if the cost jumps by $1,000 between the time you pay and the time you die, there’s no additional cost to your family. If you only opt for a non-guaranteed plan, your family will have to pay for your funeral at the current price.

Another benefit of a pre-paid funeral is that the cash you deposit accumulates interest which will be passed onto your family after your death.

It can be difficult for families to take over finances when their loved one passes away. Make sure you do all you can to make it stress-free, easy, and financially beneficial for them.

Book a Free Consultation
The comments and opinions expressed in this newsletter are solely the work of (name of IA and/or team name), not an official publication of Canaccord Genuity Corp., and may differ from the opinion of Canaccord Genuity Corp’s. Research Department. Accordingly, they should not be considered as representatives of Canaccord Genuity Corp’s. beliefs, opinions or recommendations. All information is given as of the date appearing in this newsletter, is for general information only, does not constitute legal or tax advice, and the author (or name of IA and/or team name) does not assume any obligation to update it or to advise on further developments related. All information included herein has been compiled from sources believed to be reliable, but its accuracy and completeness is not guaranteed, nor in providing it do the author or Canaccord Genuity Corp. assume any liability.
Tax & Estate advice offered through Canaccord Genuity Wealth & Estate Planning Services Ltd