Retirement and Estate Planning

It’s Important. It’s Urgent!

We at Softron Tax service a full range of clients starting from first time taxpayer students to retired senior citizens. One thing is true for every one of our clients. They all have to retire one day and nobody is going to escape death. A lot of people fail to understand the importance and urgency of this financial issue of their life and there is a reason behind it. It is most likely not affecting your life today.

Retirement planning is about financial security of the future years and estate planning relates to wealth distribution after an individual’s death. Therefore, these financial matters are never perceived urgent but just like Rome was not built in a day, substantial retirement funds and estates are also built with years of planning and investments.

A good retirement plan includes a financial provision for all the contingencies that may occur in the retirement years like heath care costs and increased costs of living. It is of utmost importance that regular long-term investments are made into retirement funds with a concrete plan on when an individual wants to retire and what kind of lifestyle is desired in retirement.

An estate plan is of great importance as well because if the estate is not planned well ahead of time, it could push the family members of a deceased into long legal battles and the wishes of the deceased may not be fulfilled. Also poorly transferred estates can attract large amounts of tax and substantially decrease the actual benefit for the beneficiaries. A well written Will can save an individual and his family, thousands of tax dollars and time.

Softron Tax has taken the initiative and launched a Trust and Estate Planning Course – a first of its kind in the industry. It covers all the essentials of retirement planning, estate planning and taxation of trusts. A candidate who successfully completes the course can confidently create Wills, Power of Attorneys and file T3 returns. It is a great course for every Canadian resident as the course material will make you think about your future goals and set you on the path of retirement and estate planning. The details of the course can be viewed at

As I said that Retirement and Estate Planning is both urgent and important. So plan ahead and do it right!!

How to file your taxes on an inheritance in Toronto?

In Canada, there is no such thing as an “inheritance tax” or “death tax” so there are no taxes to file on monies received in an inheritance, although you may have to pay tax on income that inheritance generates.

However, there are probate fees which may have to be paid from the deceased’s estate. These fees differ from province to province. Not everything in the estate is necessarily subject to probate though; certain assets held by the deceased are excluded from the estate for probate purposes. These normally include assets held in joint tenancy with rights of survivorship, insurance proceeds, and registered accounts (i.e. RRSPs & RRIFs) with named beneficiaries.

Jake Anand explains, “I’ve found from providing tax services in Toronto for many years it’s important to discuss your estate plans with a qualified financial professional to avoid paying more needlessly. Many people view probate as something to avoid at all costs, but it’s not always to your benefit to do so. The fees for probate are actually quite modest, yet every year we see people who try to avoid leaving anything subject to probate, just to incur tax liabilities in the process that end up costing them far more than the probate fees. Not only that, but most people also forget to apply for the CPP death benefit of $2,500”

The executor also has to file the deceased individual’s final tax return and wait for a clearance certificate before the estate can be distributed.

Visit one of our Toronto locations to help you file your final return quickly and professionally.