Tax Planning

Tax Planning Involving Family Trusts

September 13, 2022 - __Marketing HQ

Trusts are often used in tax and estate planning because of the flexibility they offer over the control, management and distribution of appreciating assets. In an estate planning context, trusts can be used to provide control and protection of assets, reduce probate fees at death or serve as a Will substitute, and as a vehicle to transfer wealth to future generations. From a tax planning perspective, in the right circumstances, trusts can be used to facilitate income splitting by spreading income amongst family members who are taxed at lower marginal tax rates, thereby reducing the family’s overall tax burden. In particular, the use of a discretionary family trust to reduce the after-tax cost of children’s educational and other expenses is a common tax

A Guide to the Principal Residence Exemption

September 30, 2022 - __Marketing HQ

One of the most important tax breaks offered to Canadians is the “Principal Residence Exemption” which can reduce or eliminate any capital gain otherwise occurring for income tax purposes on the disposition (or deemed disposition, such as upon death) of your home. In general, a resident of Canada who owns only one housing unit, which is situated on land of one-half hectare or less, and which has been used since its acquisition strictly as their residence, will qualify for the principal residence exemption. Although simple in concept, in situations other than the one described above the tax rules governing the exemption can quickly become complicated, particularly when more than one residence is owned by a family unit.

The pension income-splitting rules provide an effective, yet simple, strategy to lower family taxes. Being able to split pension income provides an opportunity for couples to reduce their overall family tax bill by taking advantage of a spouse’s or common law partner’s lower marginal tax rate where retirement incomes are disproportionate.

How Investment Income is Taxed

September 13, 2022 - __Marketing HQ

When it comes to investment income, all is not equal after tax. Knowing how tax rules affect your investments is essential in order to maximize your after-tax return. This publication explains the taxation of investment income held in a taxable account as it pertains to an individual resident in Canada.

Philanthropy

Building Your Legacy Using a Private Foundation

September 12, 2022 - __Marketing HQ

Like many Canadians, making the world a better place and creating a legacy aligned to your personal values, beliefs and convictions is an important wealth planning priority. Establishing a private foundation can help you achieve these priorities and give meaning and structure to your philanthropic goals. It can also help you to pass these values on to your children and grandchildren, by involving them and other family members in your giving strategy and family legacy.

Business Advisory & Succession Planning

Intergenerational Wealth Transfer

September 12, 2022 - __Marketing HQ

The successful transfer of wealth to the next generation requires the careful construction of a plan that considers the wealth requirements of each generation and the communication of a family constitution across the generations. Only about 10% of wealthy families adequately prepared the heirs for their future. Intergenerational wealth transfer does not happen by accident; families must work together to document their constitution and build family governance that will manage the wealth over the generations.

Managing Your Wealth

2024 Wealth Planning Facts & Figures

September 2, 2022 - __Marketing HQ

This is a helpful resource summarizing important tax, retirement and estate planning information.

Registered Education Savings Plan

September 30, 2022 - __Marketing HQ

At BMO Nesbitt Burns we can help you determine the best way to finance your child’s education and work with you to develop a savings program that helps meet your educational savings goals.

Registered Retirement Income Funds

September 1, 2022 - __Marketing HQ

A RRIF is very much like an RRSP in reverse. An RRSP is an account designed to help you save for retirement – a RRIF is an account designed to provide annual income in the form of withdrawals from a registered plan during your retirement. Click to read on about how you can benefit from an RRIF.

Insurance Considerations

September 2, 2022 - __Marketing HQ

Insurance is generally thought of as a risk management tool; however, as a business owner or incorporated professional, insurance can provide multiple benefits, including the potential for significant tax savings. This article looks at three insurance strategies that can be implemented into your financial plan to supplement your retirement savings, help protect your business, and help you maximize the value of your estate

Estate & Succession Planning

Investing in real estate has always been a popular investment strategy for building wealth, particularly in active housing markets and big cities like Toronto, Vancouver and Montreal. No matter where you choose to invest, the decision to purchase real estate should be reviewed with your tax and legal advisors to understand the tax and legal issues applicable to your particular circumstances, and to determine whether it is a suitable option for your situation.

Engaging the next generation

September 2, 2022 - __Marketing HQ

Are they prepared? Children and grandchildren need to get ready for their roles as inheritors.

What Happens When a Canadian Resident Dies?

September 2, 2022 - __Marketing HQ

What Happens When a Canadian Resident Dies? discusses what happens to the assets of a deceased Canadian resident from a tax and estate perspective.

Estate Information Organizer

September 2, 2022 - __Marketing HQ

This is designed to help your family, executor (referred to as a “liquidator” in Quebec), or Power of Attorney for Property (referred to as a “mandatory” in Quebec) locate all of your important documents and other information needed to administer your estate or act as your Power of Attorney for Property

Research

Rates Scenario

September 14, 2022 - __Marketing HQ

Rates Scenario, covering currencies and markets outside of the U.S. and Canada.

Economic and Market Updates

Focus

September 2, 2022 - __Marketing HQ

Focus is the flagship publication of the BMO Economics team. This weekly publication covers major economic developments, provides updated forecasts, looks ahead to the key events of the upcoming week, and provides detailed insights into key economic issues.

Education and Knowledge

Investing Handbook

September 1, 2022 - __Marketing HQ

Understanding the Three Major Asset Classes:Cash, Bonds and Stocks