CGL Financial

Income Tax Planning

Income Tax Planning

What is Income Tax Planning?

Effective strategies that will reduce taxes are important to all taxpayers, whether they are estates or trusts or individuals. Tax planning is an integral part of the financial planning process. With a clear understanding of your goals, you can consider options and opportunities to reduce or defer the taxes you pay.

Personal Income Taxes

A comprehensive examination of the ways you currently earn income, your mix of investments, your retirement plans, your estate planning goals, and the tax situation of other members of your family are essential ingredients for a well rounded plan.

It is equally important to incorporate all of these factors into a long-term financial and tax strategy. This allows you to take advantage of current legislation and enables you and your family to keep more of your money year after year. With a clear strategy in place you'll gain the peace of mind of knowing that your taxes are minimized as much as possible.

Tax Planning for Executors and Trustees

Issues such as minimizing probate fees, planned giving, insurance to cover taxes and establishing trusts to help beneficiaries realize tax advantages and preserve family assets are another integral part of tax planning.

These and other strategies should become part of a plan to reduce or defer taxes during your lifetime and after death.

A plan to provide your executors and beneficiaries with tax planning advice on the special rules that apply to returns for deceased individuals and trusts is very important, as is staying up-to-date in the ever-changing tax environment and the key tax issues relating to deceased individuals.

These areas include such things as:

  • spousal rollover of property
  • deemed disposition of capital property
  • collapsing or transferring RRSPs and RRIFs, LIFs and LRIFs
  • medical deductions and charitable credits
  • accrual of income to the date of death
  • income tax elections to reduce or defer tax
  • dividing income among several types of returns for a lower marginal tax rate

By being preparing to file your returns in a timely manner, accurately estimating the tax liability of the estate, and expediting the required clearance certificates, you can help your executors distribute your estate in a timely manner and conclude their responsibilities. It all starts with an estate tax plan.