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Estate Planning

A proper estate plan will:

  • ensure your assets pass to the heirs of your choice
  • facilitate efficient administration of your estate
  • reduce income taxes payable after your death and adequately fund their payment
  • provide for management of property for minors or those who lack the skill or ability to do so themselves
  • provide for guardianship of minors
  • arrange your affairs in an orderly manner to minimize the burden on your family

You should consider your intended beneficiaries, how your assets are transferred upon death and provide for the payment of any estate income tax. Estate planning can respond to these considerations.

Some strategies can take effect during your lifetime. Mandates, trusts, estate freezes and gifting may be part of lifetime planning. Life insurance may also play a key part.

Every family has individual needs. Contact an MD Advisor today to discuss the best way to address those needs.

Key factors and considerations

The will
The will states who will be entrusted with administering your estate and how you wish to distribute your assets upon death.

Testamentary trusts
A testamentary trust is created through your will to direct exactly how your estate’s assets will be managed and distributed to your beneficiaries.

Power of attorney
Appointing someone to manage your affairs in the case of your subsequent incapacity. For personal matters, particularly medical treatment, this is often called a living will.

Allow future growth in assets to accrue in your heir’s hands.

Income tax
Because income tax is one of the driving forces behind estate planning, it is important to be familiar with its major implications on death including tax return, RRSP/RRIF, Capital gains/losses and Charitable gifts.

Inter vivos trusts
Trusts created during your lifetime, called inter vivos trusts, are a means of settling assets today, while at the same time controlling use of the assets in the future, even after your death, to accommodate a beneficiary’s needs.

Life insurance
Insurance planning can cover estate taxes your heirs face.

Charitable giving
Tax planning can help you support a cause without affecting your heirs.

Make sure your beneficiaries are taken care of, according to your wishes. Contact an MD Advisor.

The information contained in this document is not intended to offer foreign or domestic taxation, legal, accounting or similar professional advice, nor is it intended to replace the advice of independent tax, accounting or legal professionals. Incorporation guidance is limited to asset allocation and integrating corporate entities into financial plans and wealth strategies. Any tax-related information is applicable to Canadian residents only and is in accordance with current Canadian tax law including judicial and administrative interpretation. The information and strategies presented here may not be suitable for U.S. persons (citizens, residents or green card holders) or non-residents of Canada, or for situations involving such individuals. Employees of the MD Group of Companies are not authorized to make any determination of a client’s U.S. status or tax filing obligations, whether foreign or domestic. The MD ExO® service provides financial products and guidance to clients, delivered through the MD Group of Companies (MD Financial Management Inc., MD Management Limited, MD Private Trust Company, MD Life Insurance Company and MD Insurance Agency Limited). For a detailed list of these companies, visit MD Financial Management provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies. MD Financial Management Inc. is owned by the Canadian Medical Association.

Estate and trust services are offered through MD Private Trust Company, a CMA company.

MD Private Trust Company - Regulatory Disclosures (Basel III) – Pillar 3 Public Disclosures
Regulatory Disclosures Archive

In the province of Quebec, a “power of attorney” is called a “mandate in case of incapacity”.

An “executor” is called a “liquidator” in the province of Quebec and an “estate trustee” in the province of Ontario.

Insurance products are distributed by MD Insurance Agency Limited, a CMA company. All life-licensed MD employees have life licences with MD Insurance Agency Limited, a CMA company.