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647.812.8462

  • ABOUT
  • WHAT WE DO
    • REAL ESTATE
    • WILLS & ESTATES
    • IMMIGRATION
    • FAMILY LAW
    • BUSINESS
    • NOTARY SERVICES
  • LEGAL FEES
  • BLOG
  • CONTACT
logologo

647.812.8462

  • ABOUT
  • WHAT WE DO
    • REAL ESTATE
    • WILLS & ESTATES
    • IMMIGRATION
    • FAMILY LAW
    • BUSINESS
    • NOTARY SERVICES
  • LEGAL FEES
  • BLOG
  • CONTACT
by Monica Beffa
BLOG, Finance, Wills and EstatesMay 21, 20201 comment

Three Things You Need to Know About Taxes At Death

1. There is no inheritance or death tax in Canada

In Canada, there is no inheritance or death tax levied on the beneficiaries; the estate pays any tax that is owed to the government. If you are the beneficiary of money or assets through an estate, you inherit the money tax-free, i.e. the tax has already been paid by the estate. You do not have to add inheritance to your income tax return.

2. There are estate taxes payable on death 

The key taxes payable on death in Ontario by the estate are:

  • Estate Administration Tax (i.e. Probate Fees): While there is no “death tax” in Ontario, your estate will have to pay an “Estate Administration Tax” (i.e. Probate Fee) to the Ministry of Finance.  This tax is calculated based on the total value of all assets owned by the deceased at the time of death that will go through the probate process in court. This tax is about 1.5% of the value of the estate.
  • Income taxes due for the year of death: These are the personal income taxes of the deceased.
  • Income taxes for any trusts (i.e. the estate from the time of death until distribution): These are income taxes payable on income earned by the estate.
  • Tax on Capital Gains: You are deemed to dispose of all capital property at death.  Your estate must cover the tax on any capital gains.
  • Tax on Tax-Shelter Savings plans: Registered plans such as RRSPs and RRIFs can be transferred tax-free to your spouse’s plan. If you do not have a spouse, these savings are fully taxable at your death.

3. You can avoid paying the “death” taxes

You can avoid paying taxes on death by arranging your finances and property with the help of an estate lawyer.

Leave A Valid Will

That probably means setting up a meeting with a lawyer.

Without a will, the courts decide who gets what according to the laws in the Province of Ontario, rather than according to your wishes. This can be a more complicated process, with higher legal fees and the potential for costly legal disputes.

Designate A Beneficiary

When you buy life insurance or open an RRSP, you can name a beneficiary to receive the money when you die. This means the money bypasses the estate process and is paid directly to the beneficiary. Because it does not form part of your estate, the money is not subject to probate fees and there is no delay in your beneficiaries receiving the money.

Jointly Own Property

Holding assets jointly with another person is another strategy for reducing probate fees. Joint assets pass automatically to the surviving joint owner and are generally not considered part of your estate and subject to probate fees. Married couples’ titles to homes, bank accounts, and other financial assets are often held this way.

Plan and Prepay Your Funeral

Planning and prepaying your funeral remove a major expense that your family or estate must cover upon your death. When you prepay, the money goes into a trust account or insurance fund until your funeral. This way you control your costs as you choose the type of funeral you want in advance. You will also save your family from the difficult job of making decisions during a time of sorrow.

Buy Permanent Life Insurance

Life insurance proceeds can be paid to your estate to cover estate costs or left directly to a beneficiary to provide additional amounts to a specific person. These proceeds are paid tax-free.

You can also consider a permanent insurance policy for estate planning purposes which covers you for life, no matter how long you might live. Term insurance does not.

Multiple Wills

Another planning technique involves the use of “multiple wills.”

As part of this arrangement, the lawyer will prepare two wills: a primary and a secondary will. In the primary will, the testator deals with all his or her assets other than shares of private family corporations, loans, or other amounts receivable from those corporations, and other assets for which probate is generally not required. These specific assets are dealt with in a secondary will. However, the lawyer drafting the wills must ensure that one Will does not accidentally revoke the other Will and that the Will for probate meets provincial requirements.

 

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12 Days of Christmas - Official Rules

Beffa Law’s 12 Days of Christmas Giveaway – Official Rules

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Participation constitutes the entrant’s full and unconditional agreement to and acceptance of these Official Rules. Beffa Law’s 12 Days of Christmas giveaway submission period commences at 7:00 a.m. EST on December 12, 2022, and ends at 11:59 p.m. EST on December 22, 2022, with the final winner announced on December 24, 2022. The contest is sponsored by Beffa Law.

  1. Eligibility: Beffa Law’s 12 Days of Christmas giveaway is open only to legal residents of Ontario who are 18 years of age or older. Entrants must also be Canadian citizens or Permanent Residents who reside in Ontario at the time of entry. Employees, contractors, directors, and officers of Beffa Law and its respective affiliated companies, distributors, licensees, and the advertising, fulfillment, judging, and promotion agencies involved in the development and administration of this promotion and their immediate family members and those living in the same households of each are not eligible to enter the contest.
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    During the promotion period, go to the Beffa Law Facebook page and Beffa Law Instagram page and follow the instructions for each of the 12 days. Entrants must like the Beffa Law Facebook page and Instagram pages before December 12, 2022, to get specific daily instructions on how to enter the contest each day.
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REFINANCE
  • Review mortgage instructions for refinancing.
  • Conduct and review title searches for any defects in the title.
  • Conduct and review writ searches and execution searches.
  • Secure title insurance and all correspondence with the title insurance company.
  • Review mortgage instructions.
  • Draft all mortgage documents
  • Register mortgage documents.
  • Extensive correspondence with the lenders and banks.
  • Receive mortgage funds.
  • Review certificate of insurance.
  • Meet with client to explain and sign all legal documents
  • Close the refinance transaction and securely transfer the funds
  • Register mortgage on title
  • Open the refinance file and access to client portal
  • Report to client, lender & realtor about closing
  • One in person appointment or remote signing on zoom
  • After office hours appointment.

CLOSING COSTS &  NOT INCLUDED IN FEES;

  • Title Insurance (as per Invoice)
  • Registration Costs/ per Mortgage;
  • Software Charges;
  • Flat disbursements cost, title searches, writ searches, execution searches, bank charges, courier charges etc.

CALCULATE YOUR COSTS

OCCUPANCY
  • Acting for you in matters relating to your purchase of the property
  • Review the Agreement of Purchase and Sale
  • Conduct and review title searches for any defects in the title Submit requisitions on the title and review the responses
  • Search for arrears of taxes and obtaining a certificate
  • Confirm that utilities were in satisfactory standing and arranging for meters be read
  • Search for executions
  • Examine the draft deed
  • Review the statement of adjustments
  • Reviewing the documentation provided by the builder including warranties, declarations and vendor’s and purchaser’s undertakings, and verifying enrolment with Tarion Warranty Corporation
  • Draft documents and statements in accordance with Land Transfer Tax Act
  • Correspondence with the Condominium Corporation and obtain a Status Certificate and Certificate of Insurance and review the same
  • Meet with client to explain and sign all legal documents
  • One in person appointment or remote signing on zoom
  • Close the transaction and securely transfer funds
  • Register transfer

OTHER CLOSING COSTS

  • Software charges ;
  • Disbursements includes one title search

CALCULATE YOUR COSTS

TITLE TRANSFER
  • Complete the required documents and gather the supporting documents
  • Obtain appropriate legal advice for the tax and other implications of the title transfer
  • Review the forms for completeness and accuracy
  • Perform title searches
  • Obtain title insurance
  • Update the contents and fire insurance policy
  • Update ownership records in the utility bills
  • Advise current mortgage lender of the title changes
  • Get the title change documents registered and report them to the clients
  • Send information to the city’s tax department and condo property management of changes in ownership

CLOSING COSTS NOT INCLUDED IN FEES

  • Software charges
  • Flat disbursements cost – includes one title search
  • Registration Fee

CALCULATE YOUR COSTS

SALE
  • Review mortgage instructions for refinancing.
  • Conduct and review title searches for any defects in the title.
  • Conduct and review writ searches and execution searches.
  • Secure title insurance and all correspondence with the title insurance company.
  • Review mortgage instructions.
  • Draft all mortgage documents
  • Register mortgage documents.
  • Extensive correspondence with the lenders and banks.
  • Receive mortgage funds.
  • Review certificate of insurance.
  • Meet with client to explain and sign all legal documents
  • Close the refinance transaction and securely transfer the funds
  • Register mortgage on title
  • Open the refinance file and access to client portal
  • Report to client, lender & realtor about closing
  • One in person appointment or remote signing on zoom
  • After office hours appointment.

OTHER CLOSING COSTS 

  • Title Insurance (as per Invoice)
  • Registration Costs/ per Mortgage
  • One Mortgage payout with a Tier 1 bank
  • Software & office disbursements
  • Flat disbursements cost includes one title search

CALCULATE YOUR COSTS

PURCHASE
  • Review the Agreement of Purchase and Sale.
  • Conduct and review title searches for any defects in the title.
  • Submit requisitions on the title and review the responses.
  • Conduct and review writ and execution searches.
  • Secure title insurance and all correspondence with the title insurance company.
  • Examine draft transfer deeds and draft closing documents.
  • Review the statement of adjustments.
  • Draft documents and statements in accordance with Land Transfer Tax Act.
  • Draft documents to apply for first-time home buyer rebate for the client.
  • Correspondence with the lender and banks.
  • Review the certificate of insurance.
  • Meet with client to explain and sign all legal documents
  • Close the purchase transaction and securely transfer funds
  • Register transfer
  • Report to client, lender & realtor about closing
  • One in person appointment or remote signing on zoom
  • After office hours appointment

OTHER CLOSING COSTS

  • Land Transfer Tax
  • Title Insurance (as per invoice)
  • One Mortgage with a Canadian Tier 1 bank
  • Government Registration fees
  • Teranet and search fees;
  • Software fee and other office disbursements

CALCULATE YOUR COSTS

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