In Canada, there is no inheritance tax. Instead the CRA treats the estate as a sale, unless the estate is inherited by the surviving spouse or common-law partner, where certain exceptions are possible. This means that the estatepays the taxes owed to the government, rather than the beneficiaries paying. An Estate Tax is a tax levied to somebody who has inherited money or property. Just because there is no Estate Tax doesn’t mean that there aren’t other expenses involved. There are other costs, such as, disposition Tax, which is why Estate Planning is so important.

Estate Planning may be something you think is for the rich, but it is something important for everyone. You will be deciding who inherits your Estate, it is an important part of planning ahead and providing for your loved ones. By not having a plan in place, you won’t be the one who makes the decisions of who gets what.

Reasons why Estate Planning is important:

• By obtaining professional help in the matter of Estate planning, you will be able to minimize any tax exposure and therefore maximize your wealth.
• Make the inheritance process easier for your family, legally as well as with each other.
• Setting up a will protects your family, especially if you have young kids
• You can avoid probate