For business owners and high net worth individuals, protecting assets from taxes is important for the purposes of estate planning. Although we do not have estate taxes in Ontario, we do have a probate tax that is fairly high. This has the potential to greatly reduce how much your beneficiaries receive. By creating multiple wills, your estate can save thousands of dollars on this tax.
At Filice Law, we have considerable experience helping individuals and business with multiple wills. We ensure that multiple wills are properly prepared to protect your interests and maximize what you leave to your beneficiaries.
Multiple wills require the making of more than one will to protect your assets. Essentially, there is a main will that includes assets that necessitate probate. Assets that require probate include homes and other real estate, as well as financial assets like bank accounts. Then a second will is prepared that covers assets that don’t need to be probated, such as jewelry or furniture. Even private company shares can be included in the secondary will.
Probate taxes are charged on the total value of all your properties and other goods. The result of creating multiple wills is a reduction in the overall value of the estate assets. As only one will has to be probated, this reduces the amount of probate taxes your estate has to pay.
When contemplating how to reduce estate administration taxes, multiple wills can be an indispensable tool. To obtain tax savings, these wills have to be prepared properly to have full effect. If the wills are drawn up incorrectly, they may be revoked. This would eliminate any cost savings for your estate.
Our office has prepared many wills for clients. We know how to draw up the documents properly to ensure that wills are clear and in effect, and that the minimum tax amount will be payable. As a result, your estate can save thousands of dollars — money that will go to your beneficiaries instead.
It’s prudent to have multiple wills drawn up if you are a business owner or an individual with high net worth. Call our Ancaster, Ontario office at (905) 383-0828 to speak to a lawyer or use our online form to reach us.