Provincial Life Credits: 3 credits in (BC, AB, SK, MB, ON)
CFP® Certificants: 3 credits (Financial Planning)
If your clients are anywhere in Canada outside of Quebec, you should be aware of the effect of probate fees (or estate administration tax) on their estates. To be blunt, probate hurts. It has one result across the board: diminished estate value. Even though the estate pays, the cost of probate is actually borne by inheritors because they receive less — but, by then it is too late: they cannot defer or eliminate the tax.
However, estate owners can reduce the amount of probate that will be charged on their death.
Help your clients plan now for this eventuality because there are ways of reducing this “tax”. You can help your clients save potentially significant costs with the ideas for planning in this course.