Estate Planning Options

Use this chart to compare the various, risks, benefits and results of each estate planning option

Option	Risks	Benefits	Result
Do nothing	A larger than necessary tax bill	No current, or ongoing costs	Ignores the issue and defers the liability
Do nothing	A greater total cost to your estate than necessary	You maintain control	Ignores the issue and defers the liability
Transfer to the kids	A current tax bill	No further liability to your estate	Pays the current tax and transfers the future liability to someone else
	Loss of control
	Could be subject to creditor risk
	Could be considered net family property in the event of divorce or separation
	Loss of use of capital if needed
	Your children or grandchildren could face an even bigger liability
	You no longer own the asset
	Can not be used for registered assets (RRSP/RRIFs)
Transfer to a personal corporation	Possibly a greater future tax bill than necessary if asset declines in value	You can freeze the current tax bill	Pays the current tax and transfers the future liability to someone else
	Personal use tax rules may apply
	Possible current tax bill
	Current set up costs
	Current set up costs	You can maintain limited control
	Annual maintenance costs
	Annual tax returns must be filed
	Can not be used for registered assets (RRSP/RRIFs)
Estate preservation plan	You may not qualify if you are uninsurable. The sooner an estate plan is put in place the easier it is to qualify for. However it is never to late to apply. Don't assume that you are uninsurable, find out.	You maintain control of your assets and the policy	Creates a tax free source of funding and defers liability as long as possible
		May reduce current and future taxes as investments inside of the policy grow on a tax sheltered basis if set up and maintained properly and are paid out as a "Tax Free" benefit to the estate
		A guaranteed source of funding the "Success Tax"
		Tax and Probate free benefit
		Can be a source of extra income if needed before death
		Guaranteed known cost
		Can be paid for with a single payment or ongoing payments
	May not reduce the future tax bill, it just creates a discounted source of funding the liability	Investment required is often less than the current "Success Tax" due
		The kids can pay for it or help pay for it
		Can greatly increase the value of the estate
		Cash value can be accessed at any time
		Costs just pennies on the dollar
		May be protected from creditors
		Can be set up to keep pace with inflation
		A complete solution for all of your "Success Tax" items
		Can be used to shelter current investments and investment income to reduce current taxes
Option	Risks	Benefits	Result