One long weekend down, three more to go this summer. And it was a good one for the most part, with half the weekend bathed in sunshine and warm temperatures. So what better time to bring up the topic of taxes and turn those smiles upside down?! Speaking of half, that’s the potential tax cost to your RRSPs and RRIFs without the proper Estate Planning in place. Revenue Canada (CRA) considers you to have cashed out all of your investments the day you go, and that’s when they sweep in and scoop up to half your dough.
That’s right, CRA is the equivalent of the illegitimate child you didn’t know you had, who arrives at the time the Will is read to make claim to your retirement savings. So what can be done about it? Well, the good news is a lot. More specifically, there are insurance vehicles that can cover off the tax liability on your RRSPs/RRIFs in full, ensuring your hard-earned dollars are protected and go to your loved ones, not the government.
Building and preserving wealth is the cornerstone of our approach at First Capital Financial and I and our newest associate Nicholas look forward to speaking with you in this regard.
Seven weeks to go until the next long weekend and looking forward to a great summer!