Estate Planning

It's important to have a plan for yourself, your assets, your children, and your loved ones if something happens to you. 

• Virtual Consultation:  First, we’ll meet online to discuss your family tree, assets, debts, and what to include in your Will and Powers of Attorney. Before our meeting, we’ll send you a questionnaire to fill out, ensuring we can offer you thorough financial planning. 
• Document Review: Next, we’ll schedule a virtual meeting to go over your draft documents together.
• Final Signing: Finally, we’ll meet in person at our Toronto office to sign the documents, and you’ll take home the originals.

In Ontario, children under 18 cannot directly inherit assets, real estate, or registered accounts like RRSPs or TFSAs. If your minor child is named as a beneficiary on such accounts, the funds will be held by the court until they turn 18, unless someone applies to release the funds, which is a complicated and time-consuming process. Your Will & POAs will streamline the process by including the following:

• Naming a Guardian:  When choosing a guardian, we will consider factors like their parenting style, financial stability, and whether they live close to your children. We recommend naming a backup guardian in case your first choice is unavailable. 
• Trustee for Inheritance: Your chosen trustee will have the important responsibility of managing your child’s inheritance and ensuring the funds are used properly. It’s vital to select someone who is trustworthy, financially responsible, and capable of making sound decisions on behalf of your children. Some parents opt for a professional trustee to ensure professional management of their child's inheritance.
• Powers of Attorney: Your POA will continue to financially support your family on your behalf if you become incapacitated. This means your household bills will continue to be paid, limiting the disruption to your family life during your absence. 

A trust fund is a legal arrangement that allows you to protect and manage assets for the benefit of one or more individuals or organizations. In Ontario, trust funds are governed by provincial laws and can be an effective tool for estate planning, tax optimization, and ensuring financial security for your loved ones. Here’s what you need to know about setting up a trust fund in Ontario:

A trust fund involves three key parties:

1. Settlor: The person who creates the trust and transfers assets into it.
2. Trustee: The individual or institution responsible for managing the trust and its assets according to the terms set out in the trust agreement.
3. Beneficiary: The person or organization that benefits from the trust.

Trusts can be used for various purposes, such as providing for minors, supporting family members with special needs, or donating to charitable causes.

1. Living Trust: Created during the settlor’s lifetime.
2. Testamentary Trust: Established through a will and takes effect after the settlor’s death.
3. Revocable Trust: Can be altered or revoked by the settlor during their lifetime.
4. Irrevocable Trust: Cannot be changed or revoked once established.

1. Determine Your Objectives: Before establishing a trust, it’s essential we understand why you want to create one, whether it's for tax planning, asset protection, or estate planning. This will help guide your decisions on the type of trust to create.
    
2. Choose a Trustee: Selecting a reliable trustee is crucial, as they will be responsible for managing the trust’s assets and ensuring the terms of the trust are followed. Trustees can be family members, friends, professionals, or institutions.
    
3. Draft the Trust Agreement: A trust agreement outlines the terms of the trust, including who the beneficiaries are, what assets are being placed into the trust, and how the trust will be administered.
    
4. Transfer Assets: After the trust agreement is established, assets may need to be transferred into the trust. This can involve transferring property deeds, bank accounts, or investment accounts to the trust.
    
5. Tax Considerations: Trusts in Ontario are subject to various tax regulations. A trust is considered a separate taxable entity, and any income generated by the trust will be taxed at the highest marginal rate unless income is distributed to beneficiaries. It is important to understand how taxes apply to your trust and seek guidance from a tax professional.
    
6. Review and Update: It’s essential to periodically review the terms of the trust to ensure it continues to meet your objectives, particularly if there are changes in family circumstances or tax laws.