• Protect value of estate
• Focus on distribution
• Minimize effect of taxes/probate
• Reduce administrative costs
• Minimize burden on beneficiaries
Choosing an Executor
• Sole Executor OR two or more OR alternates
• Executors must act in agreement, so it may not be prudent to designate all your children as executors.
• Is Executor local?
• How complex are your assets?
• How committed will your Executor be to getting the job done in a timely manner?
• Does your Executor have the time to devote to the task?
• Is your Executor impartial?
• Does your Executor have the necessary expertise?
T1 Final and Trust returns must be prepared
• Estates can last over a year, depending on a number of factors. You record income earned after date of death but before distribution.
• T3 Trust returns are different from individual tax filed on T1 return.
• You must file Trust returns until all trust assets are distributed.
Outsourcing can save Executors time and money
• The Income Tax Act provides some relief in a taxpayer’s year of death.
• It is a complex task to claim these relief opportunities without engaging a professional accountant.
• It may be penny-wise, pound-foolish not to consider getting professional assistance with this task or to simply look for the lowest cost tax preparer for the help you need.
• Do you have the requisite experience/skills to competently “do it yourself” in the area of individual final tax return or trust return preparation?
• Death, funerals and estate resolution are highly emotional matters that can lead to family conflict.
• Family relationships can be damaged by conflicts arising from estate matters and money.
• An impartial independent professional can often prevent or neutralize family conflicts.
• We can shorten the elapsed time in wrapping up an estate.
Death and Taxes… the two sure things in life
The deceased’s final return is typically complex because
• There is a deemed disposition (at fair market value) of all deceased’s assets at death.
• There are “one time” opportunities in the final return in areas such as claiming net capital losses from other years, claiming charitable donations, etc.
• Income items are taxable based on “right to income”.
• Tax authorities will be persistent until all obligations are satisfied; getting professional help is the prudent thing to do.
CRA will request the following:
• Assets at death
• Distributions in cash and “in-kind” transfers
• All cash inflows and outflows
• Death Certificate
Why outsource components to us?
• Relieves family members from the burden of managing your estate.
• Most individuals will do this task once or twice in their lifetime. We do many estates and trust returns each year, and you can benefit from our experience.
• Professional guidance and advice.
• Expertise on complex components such as preparing the final tax return and trust returns for income.
• Rigorous record-keeping and follow-through on critical documentation.
• Client Focused
• Personalized Solutions
• Avoid family conflict
• Tax Depth