MAKOOLI PREKUPEC LLP - http://makooliprekupec.com Wills, estates, trusts and power of attorney are all common tools used in estate planning. Estate planning involves legally structuring your assets (e.g. property, stocks, business interests, money) so as to minimize potential taxes and fees, thereby, maximizing the after-tax value of your Estate on behalf of your beneficiaries in the event of your untimely death.

1. Toronto Office: 25 Sheppard Avenue West | Suite 300
Toronto | Ontario | M2N 6S6
T: 1.416.848.9815 | F: 1.416.628.5691 or F: 1.416-640-1463

2. Can Estate Planning Save Your Family
Potential Problems and Expenses?
Wills, estates, trusts and power of attorney are all common tools used in estate planning.
Estate planning involves legally structuring your assets (e.g. property, stocks, business
interests, money) so as to minimize potential taxes and fees, thereby, maximizing the after-tax
value of your Estate on behalf of your beneficiaries in the event of your untimely death.
Recent surveys have concluded that many Canadians are unaware of their options or of the
potential consequences for failing to plan.
One out of five Canadians have not prepared a Will
They mistakenly assume their estate will pass to their spouse/ beneficiaries. Dyeing without a
Will in Canada means you are considered to have died "intestate." Intestacy rules are governed
by each province and could result in additional legal costs and time delays for your
beneficiaries. In addition, your beneficiaries will not be able to decide how your estate will be
divided – that decision will now be in the hands of the provincial government
Less than half of all Canadians have Wills that are actually current
Canadians should review and revise their Wills annually; first and foremost if there is a major life
or financial change; or secondly if there are changes to federal or provincial laws which may
potentially save them thousands of dollars by taking advantage of new regulations.
You should periodically review and update your plan in case of:
• Marriage
• Divorce
• Birth or adoption of children
• Blended family relationship
• Living common-law
• Same-sex partner
• Changes in Business interests
• Illness or incapacitation
• Changes in your intentions
• Changes in tax or non-tax laws
• Receive an Inheritance/windfall
• Change in assets
• Change in residence
• Purchase Foreign Real Estate
• Death of family member

3. One out of three Canadians believe a Will is sufficient
There’s more than One Pillar to a properly executed Estate Plan
A properly executed estate plan based on precise jurisdictional guidelines is designed to:
 Help you accumulate wealth, preserve it and then pass it on to your beneficiaries
 Help you plan for your retirement and or business succession
 Help you minimize taxes
• During your lifetime
• Upon your death
• On any income that might be earned after your death
 Provide for your family in the event of an untimely death or disability
Over one third of Canadians fail to consider potential problems which would require a
Power of Attorney or Power of Attorney for Personal Care
When Canadians are no longer able to make decisions about their personal care or medical
treatments, a written document “Power of Attorney for Personal Care” explains how they would
like to be medically treated to ensure their wishes.
A Power of Attorney would designate either a trusted individual or a trust company to manage
their financial affairs should they be unable to do so. Without a Power of Attorney, an application
would have to be made to the court requesting permission to manage their affairs.
The Tax Man Cometh
Presently Canada has no true Estate Tax. However, ones estate could be subject to three
potential taxes or pseudo-taxes:
Income Tax Due to Deemed Disposition
A final tax return needs to be filed by the estate’s executor and must include all income
earned, and any net capital gain recognized under the deemed disposition rules up to the
date of death.
Provincial Probate Taxes
Upon death, the estate's executor is generally required to file for probate with the
provincial court and submit an account of the deceased's assets as well as the original
Will.
The estate's executor is required to pay any probate tax owing and is based on the total
value of all assets that pass through the Will.

4. Probate taxes may be reduced by the naming of beneficiaries, utilizing Joint Tenancy with
the Right of Survivorship agreements and the use of living trusts.
Trusts, if planned and executed correctly, offer:
The main benefits of Canadian trusts are:
• Privacy
• Asset Protection (structuring to better protect your assets from future creditors)
• Control
• Tax planning
U.S. Estate Tax (on your U.S. assets)
Canadians are required to pay U.S. Estate Tax based on the market value of their U.S.
assets (real estate, publicly-traded stocks and bonds and other types of government
(debt) at death.
Over 70 percent of family-owned businesses do not survive the transition to
the second generation
Numerous family business shareholders have not completed an estate or succession plan
for their business and mistakenly feel that writing a Will is all that is needed to safeguard
their family business succession.
Succession planning should be considered synonymous with tax planning and estate
planning for the reason that all three relate to planning for your future, your business
future and your family’s future.
A family business succession plan provides instructions for your partners, heirs and
successors to follow in the event of your death, disability or retirement and may include:
• Buy-sell agreements between business partners and heirs
• Distribution of business stock and other business assets
• Life insurance policies
• Debt elimination schedules
• Division of successor responsibilities
• Business valuation
• Other factors that may affect the business
There is No Substitute for Qualified and Specific Professional Advice
Skilled tax, estate and succession planning are exceptionally complicated. Horror stories of
do-it-yourself forms obtained from the Internet can be found everywhere. Obtaining the
advice of a competent and skilled professional cannot be overstated. This means an attorney
who specializes in tax, Wills and estate planning.

5. An experienced estate planning attorney will help you properly structure your estate and
succession plan to help minimize taxes and disputes, thereby providing for your family in the
event of an untimely death or disability.
MAKOOLI PREKUPEC LLP
Toronto Office: 25 Sheppard Avenue West | Suite 300
Toronto | Ontario | M2N 6S6
T: 1.416.848.9815 | F: 1.416.628.5691 or F: 1.416-640-1463
http://www.MakooliPrekupec.com