Investments, Tax and Estate Planning

Investments, Tax and Estate Planning

 

Investments

When you get married many things will change and one may be your investments. As single people you each had a financial plan that suited your age, objectives, risk profile, income, etc. However, now that you are becoming a couple, and perhaps planning a family, your investment situation may change. Although this will probably not be the most pressing issue as your marriage nears, it is strongly recommended that you plan to meet as a couple with your financial advisor to reconsider your financial future. Your plans and objectives as a couple will definitely be different than your individual plans and this opportunity to take stock of your new situation should be an exciting time. Properly arranged and structured, your collective saving ability may very well be more powerful that the sum of your independent efforts. l have a lot of information about not only creating a solid portfolio for your new circumstances, but also some good strategies to take advantage of the tax opportunities available and to ensure your estate is protected.

Taxation

There are distinct tax advantages to being part of a couple as opposed to two individuals. When it comes to filing tax returns, certain tax advantages can be shared or directed to the spouse who benefits most. As well, there are numerous tax advantages provided for spouses such as the 'spousal rollover' and an opportunity to ‘income split’, both of which reduce the overall amount of tax paid by a couple.

The Importance of Wills

Everyone should have a legal Will. It is also important to appreciate that when you become married, your previous Will is automatically revoked. Consequently, it is very important that you and your spouse discuss your estate plans and create new Wills, ideally with the assistance of a lawyer. If you don’t have a legal Will in place, provincial/territorial law will apply legislation that will distribute assets subject to a specific formula for the distribution of assets and care of dependent children which may not be what you and your spouse intended. You should also have proper Powers of Attorney in place to ensure your property is protected should anything happen to you and you become unable to make decisions. You should also have proper Powers of Attorney in place to ensure your property is protected should anything happen to you and you become unable to make decisions. Here are helpful resources that you can use when planning your estate:

Will Planning Checklist and Personal Record Keeper

Please contact us to find out more!

 Barbara Reid's Wealth Management Team

Your personal Wealth Advisor in Hamilton, Ontario