For many Canadians the majority of their wealth is held in personally owned real estate. For most this will be limited to their principal residence, however, investment in recreational and real estate investment property also forms a substantial part of some estates. Due to the nature of real estate, it is important to utilize estate planning to realize optimum gain and minimize tax implications.
Key Considerations for Real Estate Investment
The Impact of Capital Gains Taxes
Why is Estate Planning Important?
It is recommended that family issues (including estate equalization) be addressed with certain types of real estate assets. Estate planning can organize your assets with the objective to ensure that at your death they are distributed according to your wishes:
Tax and Estate Planning Strategies for Real Estate Holdings
Principal Residence
To maintain family harmony, considerable thought should be given when making decisions to bequeath or liquidate the family cottage or recreational property.
Recreational Property
Real Estate Investment Property
Solving the Liquidity Need
One of the most cost effective methods in providing the necessary liquidity in these situations is the use of second-to-die joint life insurance.
The Insurance Solution
Please call me if you would like to discuss your personal estate planning needs. As always, feel free to use the social sharing buttons below to forward this article to a friend or family member you think might benefit from this information.
Ong Financial Planning Services Ltd.
John Ong, CFP, CHS, CPCA, CCS
Financial Planner
Tel: (604) 676-1088
Email:
1275 West 6th Avenue 3rd floor
Vancouver, BC
V6H1A6