Passing On Wealth Early – 4 Tips

A Quick Reminder:

Upon your passing, the wealth that forms your estate can only go to 1 of 2 places:

1) Your beneficiaries (family, friends, charities, etc.)

2) The Government

There is no third option!

If you would prefer to have more of your money going to option 1 and less to option 2, It’s important to put the right strategies in place. One potential strategy is gifting wealth while living instead of through a will upon death.

You’ve worked hard to protect and grow your wealth. Now you want to pass it on to the people and/or causes that are most important to you. Here are 4 ideas to keep in mind:

1)???Impact > amount

In many cases, receiving a smaller gift earlier in life could be more valuable to your beneficiaries than receiving a larger gift later on. Think about when your gift will have the greatest impact.

2)??? It can be fun!

When you give away wealth before death, you get to see the fruits of it being spent and enjoyed.

3)??? You don’t have to give a lump sum

For some beneficiaries, receiving a lump sum gift could do them more harm than good. Consider strategies that will allow the beneficiary to receive the gift over time.

4)??? Have a plan!

Work with your financial and tax advisors to create a tax-efficient strategy for your giving.

Interested in how strategies like this could benefit you?

Book a Strategy Call with our team.

-- Alex Purdom

CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc. Insurance services are available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are available through CIBC Wood Gundy Financial Services (Quebec) Inc. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc.

Clients are advised to seek advice regarding their particular circumstances from their personal tax and legal advisors.