The first step towards developing an effective financial plan is to review your current tax position based upon income and the types of assets you hold. However, the Income Tax Act contains numerous complexities that can be difficult for the average Canadian to understand, and therefore prioritize for their own specific needs.
Assistance from our professional financial advisors, as well as your accountant and legal advisor, is essential to garner the understanding necessary to make informed and educated financial decisions.
Canadians are generally willing to pay the appropriate amount of tax based upon their income to support their lifestyle, with the assistance of the social benefits available to them. However, many do not understand that the Canada Revenue Agency lies in wait, accessing many hard earned assets for taxes due, before passing them on to the people you care most about.
Estate planning is the process of planning for the disposition and allocation of a person’s estate upon death.
Common Estate Planning Objectives Include:
- Minimizing income tax upon death
- Minimizing probate fees upon death
- Simplifying your affairs to reduce the burden on surviving family members
- Planning for the distribution of assets in accordance with your wishes
By better understanding marginal tax rates, deferred growth and tax exempt growth you will be in a great position to maximize your income and net worth.
At L&A Financial we provide all of our clients with a good understanding of the potential benefits of earning different types of income, including wages, interest, dividends and capital gains. We will outline the advantages of positioning portfolios for optimum growth while also understanding the risk of market volatility and inflation over time. How your portfolio is registered will define the tax deductibility of contributions, deferral or exemption of taxable income and access to social benefits in retirement.
Contact us today to learn more about our unique tax planning process and book your free no obligation consultation with one of our financial advisors.