Estate Planning and Tax Returns
In all but the simplest cases, complying with the income tax obligations of deceased persons and estates is challenging. There is sometimes significant risk of paying more tax than needed or incurring penalties. Estate Planning becomes of utmost importance in most cases.
Some situations where help from tax professionals is warranted are when the deceased:
- Owned a business
- Owned shares of a private corporation
- Owned real estate
- Had many investment accounts and assets, or
- The executor is uncomfortable for any reason
One significant aspect of estate planning is income tax. There is less planning that can be done after the taxpayer has died. However, panning in advance can save tax and leave a map for the executor to navigate the estate.
moreover, There is no single solution for all estates. In my experience this is one of the most complex and highest stakes situations for personal income tax in Canada. The assets, income, and tax of the deceased, the needs and income level of the beneficiaries, and any charitable donations all must find a way to fit together optimally. Certain steps and transactions need to occur within limited timeframes and must be documented and reported in specific ways. And these rules keep changing.
Perhaps you’re the executor and need help gathering the pieces of the puzzle, with no picture of the puzzle you are trying to make. Perhaps you do not wish to leave a mess behind for your loved ones to clean up after you pass on. If this is you, please contact me for a free initial consultation to discuss how to get started on solving this puzzle.