Karen Sands discusses key challenges to retirement income and estate planning, focusing on income splitting and minimizing taxes. Income splitting can be done through investing in assets that generate capital gains for children or prescribing loans between family members. Tax can be deferred through RRSPs or paid at lower rates through capital gains, eligible dividends, or pension income splitting. Planning like setting up trusts can reduce taxes paid by heirs. Proper planning through income splitting and upon death can substantially reduce taxes paid over a lifetime and for heirs.

1. Karen Sands, CA Tax Partner Five Key Challenges to Retirement Income & Estate Planning Thursday, March 17, 2011

2. Marginal Income Tax Rates * Based on 2010 personal income tax rates in Ontario $17,290 $37,090 $120,000 $13,220 $19,800 $80,000 $6,580 $40,000 Increase in tax Income tax* Taxable income