In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, and writer, interviews Rachel Blumenfeld, a financial advisor in the Estates and Trust group at Aird & Berlis, about estate planning for business owners!
Episode Highlights:
● 0:45 – Rachel Blumenfeld introduces Aird Berlis and her role at the company?
● 1:59 – What usually gets the estate–planning conversation started?
● 3:12 – Rachel discusses the documents that are involved with the estate–planning process.
● 6:44 – What kinds of assets have to be probated?
● 8:05 – What falls outside of the things that have to be probated?
● 10:25 – What is a Bare Trust and how can it help?
● 13:40 – Rachel lists the reasons that one would want the probate.
● 14:41 – How do things change when an American citizen is involved in a Canadian estate?
● 17:57 – What are the complications when an American that lives in the US is named as an executor?
● 20:46 – What is an estate freeze and how does it benefit business owners?
● 23:41 – Rachel breaks down the tax issues pertaining to estate freezes.
● 24:32 – Rachel gives general advice to business owners when they begin to plan their estate.
3 Key Points
1. Financial advisors suggest having 2 wills prepared to avoid both the costs from probated assets and the time that it takes to go through probation.
2. Joint accounts are a common major issue in estate litigations, all to save the probate rate of 1.5%. The problem is, most people don’t actually know the math.
3. There are a plethora of changes to the estate–planning process when an American citizen is involved, with different complications depending on their role, where they live, and if they are living or deceased.
Tweetable Quotes:
● “Estate planning is all about making sure what you have goes where you want it to with as little pain and taxation as possible.” – Jason Pereira
● “If a single asset on a will has to be probated, the entire will has to be probated.” – Jason Pereira
● “What you end up with is the parents end up owning the current value...a trust for the kids holds the future growth, and you’ve pushed out that tax bill on that future growth to the next generation.” – Rachel Blumenfeld
● “There’s no worse way to destroy the family dynamics after you’re gone than to leave the messy estate behind.” – Jason Pereira
Resources Mentioned:
● Facebook – Jason Pereira’s Facebook
● LinkedIn – Jason Pereira’s LinkedIn
● Woodgate.com – Sponsor
● FintechImpact.co – Website for Fintech Impact
● jasonpereira.ca – Jason Pereira’s Website
● Airdberlis.com – Website for Aird & Berlis
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