5 Strategies for transferring assets
1. Wills – The cornerstone
of any estate plan and the most common method for assets to
be transferred. The main purpose of a Will is to describe
how you want your assets to be distributed. (Read more about
Wills)
2. Joint ownership –
Registration of assets in joint ownership is one of the simplest
ways to transfer assets. Joint Tenancy with Right of Survivorship*,
when one party dies, ownership is automatically transferred
to the surviving party. Although useful for avoiding probate
taxes, other tax and legal complications can arise.
*Residents of the province of Quebec cannot use a Joint Tenancy
With Right Of Survivorship agreement in order to avoid or
minimize probate taxes since an automatic right of survivorship
does not exist under Quebec law.
3. Gifting assets before death –
Without doubt the easiest way to transfer assets is to give
them away while you’re alive. While gifting to charitable
causes can lead to tax benefits, other gifting can create
tax liabilities.
4. Testamentary trusts –
A testamentary trust takes effect at death and becomes part
of the Will. It allows ownership of assets to be transferred
while control of the assets is determined by the provisions
of the trust.
5. Living trusts – A
living trust is created while you are alive and there are
many reasons why they are used. But they serve the same basic
purpose of transferring ownership of assets while retaining
control.
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