In an appropriate situation, the use of multiple Wills could be a way of avoiding some probate tax. Probate is the legal process of having the Will validated by the court and administration of the deceased’s effects granted to the executor proving the Will. It is usually requested by banks and investment firms before they will allow the executor to deal with certain estate assets. Courts charge probate duty and a fee to issue a probate certificate to the executor. There are also legal fees to have this process completed by legal counsel. Avoiding these fees and delays is the goal of a multiple Will plan. Here is how it could work:
You execute two Wills; a General Property (GP) Will and a Limited Property (LP) Will. Your GP Will governs the assets of your general estate that likely will attract probate tax, such as bank and publicly traded investment accounts. Your LP Will governs your other assets, such as your private company interests and any personal property that would normally not require probate. Your LP need never to be submitted to the court for probate. For example, the value of any shares in your business corporation would not have to be included in calculating probate tax since a probate certificate would not be required to transfer ownership of this asset to your beneficiaries.
A Predecease Transfer of Assets to Your Spouse
Another possible way of saving tax involves a transfer of selected assets to your spouse. The Tax Code imposes a capital gains tax upon your death. As an example, if you own shares in your own private company which have appreciated in value and have an unrealized capital gain, these are deemed to have been sold upon your death. However, if your Will directs your executor to transfer this asset to your spouse, then this “deemed sale” will not apply. Instead, the asset passes to him/her tax-free thus deferring any capital gains tax until the day when he/she sells the asset or dies.
The foregoing provides only an overview and does not constitute legal advice. You are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained in the context of your own particular circumstances.
Multiple Wills
In an appropriate situation, the use of multiple Wills could be a way of avoiding some probate tax. Probate is the legal process of having the Will validated by the court and administration of the deceased’s effects granted to the executor proving the Will. It is usually requested by banks and investment firms before they will allow the executor to deal with certain estate assets. Courts charge probate duty and a fee to issue a probate certificate to the executor. There are also legal fees to have this process completed by legal counsel. Avoiding these fees and delays is the goal of a multiple Will plan. Here is how it could work:
You execute two Wills; a General Property (GP) Will and a Limited Property (LP) Will. Your GP Will governs the assets of your general estate that likely will attract probate tax, such as bank and publicly traded investment accounts. Your LP Will governs your other assets, such as your private company interests and any personal property that would normally not require probate. Your LP need never to be submitted to the court for probate. For example, the value of any shares in your business corporation would not have to be included in calculating probate tax since a probate certificate would not be required to transfer ownership of this asset to your beneficiaries.
A Predecease Transfer of Assets to Your Spouse
Another possible way of saving tax involves a transfer of selected assets to your spouse. The Tax Code imposes a capital gains tax upon your death. As an example, if you own shares in your own private company which have appreciated in value and have an unrealized capital gain, these are deemed to have been sold upon your death. However, if your Will directs your executor to transfer this asset to your spouse, then this “deemed sale” will not apply. Instead, the asset passes to him/her tax-free thus deferring any capital gains tax until the day when he/she sells the asset or dies.
The foregoing provides only an overview and does not constitute legal advice. You are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained in the context of your own particular circumstances.
Tax Law
DioGuardi offers solutions for tax problems such as:
Unreported income
Unfiled tax returns
Payment arrangements
Unpayable tax debt
Tax dispute litigation
Criminal tax defense
Wills, Estates & Trusts
DioGuardi Law offers these will, estate and trust services for individuals and business-owners:
Wills
Preparation of trust agreements
Powers of attorney
Estate administration
Probate
Representation in estate driven litigation
Real Estate
DioGuardi Law can assist you with all your real estate needs including:
Newly constructed/Resale
Purchases and Sales
Title transfers
Leases
Private mortgages
Refinancing
Condominiums
Vacant land
Tax Debt Relief
When your tax balance is too large to be affordable, DioGuardi Law can protect your home, your cash flow and your financial assets from the Taxman. It is essential that we begin planning a strategy before the CRA registers a lien against your properties or seizes financial accounts, and before you engage with an insolvency trustee.
Business & Tax Planning
DioGuardi Law has the experience to provide:
Resident and non-resident corporate restructuring
Optimum use of holding corporations
Continuity and succession planning
Tax-free transfers
Losses and ABIL planning
Making interest tax deductible
Small business planning
Corporate & Commercial Law
DioGuardi Law have represented business clients for the last 50 plus years and have supported their legal requirements on an on-going basis by offering the following services:
Incorporations and corporate governance
Corporate reorganizations and transactions for the directors and shareholders
Negotiation and drafting of agreements, professional corporations, minute book maintenance
Brigitte DioGuardi
B.A., LL.B
Brigitte obtained her Law Degree from the University of Sheffield in the United Kingdom. Upon her return, she qualified for the Bar and was called to the Law Society of Ontario (formerly the Law Society of Upper Canada) in 2002. She was also a member of the Bar of British Columbia and headed up the Vancouver office of DioGuardi Tax Law. Fluently bilingual in English and French, Brigitte has broad experience in the areas of:
Joyce Bruno has worked as executive legal assistant to Paul Dioguardi for 35 years and continues to offer her expertise and experience to the Dioguardi Law firm. Joyce’s role has evolved over the years and has acquired and developed many skills. She is an invaluable asset in case management and ensures the smooth running of our office.
Paul DioGuardi
B.A., LL.B, KING’S COUNSEL, SENIOR COUNSEL
Paul obtained his Law Degree from Queen’s University in 1964. He is a member of the Bars of Ontario, British Columbia and the Turks and Caicos Islands, a British tax free territory in the West Indies. He has over 50 years of experience and was trained at the Ottawa head offices of Revenue Canada and the Tax Litigation Section at the Department of Justice. Paul has had and continues with an extensive career in various areas of law such as:
