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Porter Ramsay Blog

Wills and estates: Three primary costs in estate planning

On Behalf of | Jul 30, 2018 | Wills And Estates |

There are things people can do to reduce costs when planning their estates. British Columbia residents taking the time and effort to fashion their wills and estates want to leave as much as possible to their loved ones after they’ve passed away. But by planning in advance, more of the assets of the estate are sure to go to beneficiaries.

Probate is the process by which the executor actually proves that he or she is the one authorized to act for the estate, and that can be an expensive prospect. The will is reviewed to make sure it is legally binding. During this time, the executor pays debts that the estate owes and makes sure beneficiaries receive their inheritances.

Any capital gains on the property of an estate is taxable and must be paid by the estate upon death. When it comes to taxes — and plans that are tax-sheltered like RRIFs and RRSP — they can roll into a surviving spouse’s plan tax free. However, if the deceased did not have a spouse, funds in these savings plans are fully taxable upon death.

Wills and estates costs can be managed by planning ahead. A British Columbia lawyer may be able to help his or her clients to include the things that may help in reducing planning costs. He or she may be able to provide help when it comes to things like jointly owned property and may be able to provide advice on how to minimize other expenses that loved ones may have to contend with upon the death of a family member.