“More than half of Canadians (55%) have written a will, but very few have included trusts as part of their estate plans, says a new CIBC poll,” an article posted to Advisor.ca last week stated. The article continued, “It suggests clients should research the vehicles, as they can potentially save taxes by using them, as well as speed up the transfer of their assets upon death. In essence, a trust lets investors transfer assets to a beneficiary under certain terms and conditions; they can outline how and when the funds can be spent, says Jamie Golombek, managing director of tax and estate planning at CIBC Private Wealth Management. ‘You can indicate in the trust document that the money should be used to pay for school tuition, for example, rather than to buy a sports car.’ Additionally, he says a trust is considered to be a separate individual for tax purposes. ‘For a testamentary trust, any income earned on assets is taxed at the same graduated tax rates as an individual. This can yield savings that compound every year.'” Read the full article here. | Raymond Matt, CFP, CLU, TEP, CHS
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