WHAT YOU LEAVE YOUR CHILDREN
Our children have their own individual challenges, and proper manageent and dispositon of our assets will achieve a peace of mind to you the testator, and comfort to your loved ones.
What can I prepare to benefit my children on my demise?
You detail what specific items you wish each of your children to have on your death. In additon, testamentary trusts in a will trim annual tax liabilities for the next generation, providing that more of your money is available to your next generation rather than for the government.
Can I ensure in my will that creditors and in-laws will not share in the inheritance of my child?
Yes. A testamentary trust can establish additional security that the inheritance to your children or gandchildren will be protected from future creditors and marital breakdowns.
Can I have my will manage the future payments to my child, who has addiction problems?
A trust can address through the money managment authority of a trustee spending and addiction problems of your child.
My child is disabled. What am I able to do with my will in order to provide for my disabled's child's needs and still have my child benefit for the support of the Ontario Government?
If your child is disabled, Ontario allows what is called a Henson trust, which keeps government support intact for disabled heirs.
I have a family business and want to leave my business to my children with minimum tax liabilities on my death. What should I do?
A divison of a family business among the children of the founder of a business is common, and structuring the transaction with your children must be crefully planned with an acountant and a lawyer. The "rollever" to your children is invariably intended to be effected with little or no cash and on a basis that does not attract immediate liability.
Can I have more than one trust is my will?
A will can establish multiple testamentary trusts, such as a separate trust for each of the testator’s children or grandchildren. Because a testamentary trust benefits from graduated tax rates, the Canadian tax authorities have legislation (ss.104, I.T.A.) that may limit the number of trusts that may exist in order to prevent an abuse of the tax rate structure. Some factors that will be considered by the tax authorities in determining whether a separate trust has been established for tax reduction benefit purposes:
- Is there a clear intention in the will to create separate trusts?
- Do the trusts have common beneficiaries?
- Are the assets segregated from the other trusts?
- Is the trust accounting separate from the other trusts?
- What have been the actions and activities of the Trustees in relation to each trust?
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