Estate Planning Strategies
At Estately Wealth, we blend sophisticated financial planning with personalized strategies to help our clients preserve wealth, optimize corporate structures, and make impactful charitable contributions.
Estate Planning
1.
Prioritize and Maximize Your Legacy.
At Estately Wealth, we are committed to ensuring that your legacy is as enduring as the wealth you’ve created.
Our approach to estate planning involves not only fundamental tools but also advanced strategies, ensuring that your wealth is transferred to the next generation in the most tax-efficient manner possible.
Key Components Include:
Trusts
Manage and protect assets, provide for minors or dependents with special needs, and potentially reduce estate taxes.
Estate Freezes
Restructure your private company’s shares to lock in values and facilitate tax-efficient intergenerational wealth transfer.
Charitable Planning
Support causes you care about while gaining potential tax benefits, including charitable donation tax credits.
Life Insurance
Utilize insurance to cover debts, funeral costs, and create tax-efficient transfers to beneficiaries.
Probate Planning
Establishing trusts and creating secondary wills can transfer assets outside of probate, ensuring privacy, reducing legal costs, and minimizing delays and expense
Wills
We help you outline the distribution of your assets, name guardians for minor children, and designate an executor.
Power of Attorney
Designate individuals to manage your financial affairs and make healthcare decisions if you become incapacitated.
Succession Planning
Define the future of your business with a clear plan that supports seamless transitions.
Corporate Strategies
2.
Leverage Structure for Growth.
Corporations, with their unique positioning, can integrate both business needs and personal wealth strategies effectively
Advantages of Corporate Insurance Include:
Efficient Tax Planning
Optimize your corporate tax bracket for substantial savings on insurance purchasing.
Tax-Free Benefits
Utilize the Capital Dividend Account (CDA) for tax-free extraction of policy death benefits.
Liquidity and Security
Life insurance provides liquidity and a predictable value for financial planning.
Tax Sheltering
Treat life insurance as a corporate tax-free savings account with sheltered growth.
Certainty of Value
Know the exact worth of your policy annually, with guaranteed values unlike fluctuating investments.
Insuring Corporate Debt
Secure term and permanent life insurance options tailored to your business timelines.
Asset Transfer
Use insurance to transfer corporate wealth to the next generation tax-efficiently.
Funding Buy-Sell Agreements
Utilize insurance to fairly distribute family wealth among heirs, aligning with business continuity plans.
The Need for
Corporate Insurance
To understand the need for insurance, it’s important to understand the business life cycle.
New Business
Phase 1: Risk
Management
- Loan Protection
- Key Person Protection
- Buy/Sell Agreement
- Personal Planning
- Will/PA
- Life Insurance
- Disability Insurance
- Cl Insurance
Established
Phase 2: Business
Financial Planning
- Group Benefits
- Tax Sheltering Corp. Surpluses
- Retirement Income Planning
- Executive Benefits
- “Grouped Plans”
- Split Dollar CI
- Wage Loss Replacement
Mature
Phase 3: Business
Succession
- Removing Corporate Surpluses
- Retaining Key Employees
- Tax Planning
- Equalization
- Corporate Restructure
- Estate Freeze
- Immediate Financing Arrangement
- Charitable Giving Strategies
Charitable Giving
3.
Optimizing Impact and Benefits.
At Estately Wealth, we understand that many of our clients possess a deep-seated desire to contribute meaningfully to society, yet they often lack the know-how to execute their philanthropic visions effectively.
By leveraging Canada’s charitable tax credit rules, we help clients optimize both their tax and estate plans, enabling them to support charitable causes while also realizing significant tax benefits.
Does the Why Matter?
The path to philanthropy is less important than the impact. Regardless of your motivations, the benefits—both for you and the charities you support—remain substantial.
Identifying Your Philanthropist Type:
Anonymous
For those who view giving as a moral duty, anonymity is key. These individuals seek no recognition, believing wholly in the stewardship of giving.
Leaders
These philanthropists are driven by their commitment to causes they care about deeply. By publicly aligning with charities, they inspire others to contribute, amplifying their impact.
Legacy Creators
For some, philanthropy is about building a lasting legacy, often continuing a family tradition of giving. They aim to leave a name that resonates generosity and civic responsibility.
Strictly Business
Recognizing the dual benefits of charitable contributions, these philanthropists engage in giving not only to fulfill social responsibilities but also to enhance their business reputation and achieve tax efficiencies.
By understanding these philanthropic profiles, Estately Wealth tailors strategies that align our clients' charitable initiatives with their personal or business goals, ensuring that their generosity extends far beyond financial contributions. Whether you’re driven by personal conviction or practical benefits, our team is here to facilitate meaningful contributions that reflect your values and optimize your fiscal advantages.
Strategies Include:
Transferring Shares
Donate preferred shares to charities while using life insurance to provide liquidity for share redemption.
Funding Tax Liabilities
Address tax implications of deemed dispositions on death with strategic insurance planning.
Immediate Financing Arrangements (IFA)
Life insurance provides liquidity and a predictable value for financial planning.
Retirement Planning with Life Insurance
Explore options to use life insurance for generating retirement income, maintaining tax efficiency.