Rolling-over taxable assets to a spouse is simple. But transferring taxable assets to other heirs can have tax consequences. If your client should die without a living spouse, its as though they liquidated all their assets the moment before their death, and any taxes due must be paid by their estate. Their heirs will receive only what remains. Fortunately, in most circumstances, your clients can pass along their principal residence to their heirs without paying tax, but if they have registered investments, stocks, mutual funds, a cottage, other real estate, or a business, a significant portion of their estate may be eroded by taxes. The good news is they can do something about it now.
Share this calculator to start conversations about estate taxes so you can show your clients how to transfer their estates to their heirs intact.
Please note: this calculator does not include the changes proposed in the 2024 Federal Budget. The Budget proposes to increase the inclusion rate for capital gains from 50% to 66.67% for net capital gains over $250,000 on or after June 25, 2024. The inclusion rate for net capital gains below this threshold will retain the 50% inclusion rate. This change will result in a higher tax liability on death for net capital gains over the $250,000 threshold. We will advise when the calculator has been updated.
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