By Allan Madan, CPA
September 11th, 2025
Without proper planning, your heirs or executor may be left scrambling to deal with complicated tax issues, unexpected capital gains, and probate costs.
Estate planning is about more than just deciding who will inherit your assets. In Canada, when someone passes away, the Canada Revenue Agency (CRA) treats their assets as if they were sold at fair market value the day before death. This is called a “deemed disposition”, which can create a significant tax bill for your surviving loved ones if your assets have appreciated over time.
Small mistakes, like adding a child to a property title or failing to file the right forms, can create huge tax costs for your family.
Working with an accountant and estate lawyer ensures that you minimize capital gains and probate costs, spousal rollovers and exemptions are used correctly, your executor has a clear plan to follow, and your children or heirs aren’t burdened with unnecessary taxes. The key is to plan early and get the right advice. With the help of professionals, you can reduce taxes, protect your wealth, and ensure your family inherits more of what you’ve worked so hard to build.
