Скачать или смотреть How a Trust can Save You Serious Money

A trust is a powerful legal instrument when deployed correctly for high-net-worth individuals and business owners to minimize taxes and protect wealth, even though it does also involve upfront legal costs and annual filing requirements,

1. Leveraging Income Splitting
Progressive Tax Savings: Moves income from high-bracket earners to lower-bracket family members.
Household Wealth: Keeps more money within the family unit by lowering the collective tax bill.

2. Multiplying Capital Gains Exemptions
LCGE Multiplication: Allows multiple beneficiaries to claim the $1.25M exemption on business sales.
Massive Savings: Can shield millions in capital gains from the CRA through strategic allocation.

3. Bypassing Probate Fees
Estate Tax Avoidance: Trust assets skip the provincial probate process and associated fees.
Efficiency: Saves 1% to 1.5% of total asset value and reduces legal/administrative delays.

4. The Estate Freeze Strategy
Growth Deferral: Locks in current business value and moves future growth into a trust.
Tax Planning: Prevents a heavy tax burden upon death, facilitating a smoother family transition.

5. Professional Asset Protection
Creditor Shield: Protects family wealth from personal lawsuits, bankruptcy, or professional liability.
Legal Firewall: Separates personal ownership from asset control to safeguard capital.

6. Protecting Disability Benefits
Government Eligibility: Allows beneficiaries to keep provincial support while receiving trust funds.
Henson Trusts: Strategically manages inheritances without triggering asset-limit disqualifications.

7. Preventing Wealth Erosion
Controlled Distribution: Prevents heirs from mismanaging or quickly exhausting their inheritance.
Legacy Preservation: Ensures capital is preserved for education and long-term financial security.

To learn more about our law firm's legal practice with respect to trusts and estate planning, visit our website https://www.neufeldlegal.com, or contact our law firm at [email protected] to schedule a confidential consultation. Thank you.

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