Gord Honor – Broker at Berkshire Hathaway HomeServices
For many Canadians, the majority of their wealth is held in personally owned real estate. For most this will be limited to their principal residence, however, investment in recreational and real estate investment property also forms a substantial part of some estates. Due to the nature of real estate, it is important to utilize estate planning to realize optimum gain and minimize tax implications.
It is recommended that family issues (including estate equalization) be addressed with certain types of real estate assets. Estate planning can organize your assets with the objective to ensure that at your death they are distributed according to your wishes:
To maintain family harmony, considerable thought should be given when making decisions to bequeath or liquidate the family cottage or recreational property.
One of the most cost effective methods in providing the necessary liquidity in these situations is the use of second-to-die joint life insurance.
Tax-free cash at the second death. Naming a beneficiary bypasses the will and is not subject to probate.
The proceeds are protected against creditor claims.
Insurance provides for a guaranteed low cost alternative to the issue of satisfying the liquidity need at death.
Please call me if you would like to discuss your personal estate planning needs. As always, feel free to share this article with anyone you think may find it of interest.