Published on Financial Post | FP Answers
By Julie Cazzin, December 6th, 2024
In an increasingly complex world, the Financial Post should be the first place you look for answers. Our FP Answers initiative puts readers in the driver’s seat: You submit questions and our reporters find answers not just for you, but for all our readers. Today, we answer a question from a frustrated senior about how to ensure his estate is not heavily taxed at death.
Could paying a little more now provide significant relief on your final tax return upon death?
How do I minimize taxes for my kids’ inheritances? My tax-free savings account (TFSA) is full. Mandatory yearly registered retirement income fund (RRIF) withdrawals elevate my pension income, which raises my income taxes… Also, when I die, my RRIF investments will be treated by CRA as sold all at once and become income for that one year so that income and taxes will be higher and the government will take a huge chunk of my offsprings’ inheritance.
Frustrated Senior, Nova Scotia
