Are you most concerned about supporting your family? Leaving money for your grandchildren’s education? Minimizing taxes? The answers to these questions will determine how you set up your will and arrange your financial affairs.

Reducing Estate Taxes and Probate Fees

Your Barrons advisor can help identify your options for reducing taxes and probate fees.
Some strategies include:

• Keep certain assets out of your estate. As long as you have named a beneficiary, life insurance policies and RRSPs/RRIFs won’t be considered part of your estate for probate fees.
• Buy life insurance to cover estate taxes. Life insurance can provide income for your dependents, pay for your grandchildren’s education, and pay for final expenses and offset capital gains taxes.
• Consider setting up a spousal or family trust to avoid capital gains taxes.
• Include tax-oriented clauses in your will, such as asking your estate to make an RRSP contribution to your spouse’s RRSP for that year if permitted. This will help reduce your final income and tax bill.