Estate Strategies
Planning is essential for HNWI. Here’s how tax and insurance strategies can ensure your wealth is preserved for future generations.
Estate Strategies
Planning is essential for HNWI. Here’s how tax and insurance strategies can ensure your wealth is preserved for future generations. High-net-worth (HNW) individuals face a different set of financial challenges and opportunities than most other Canadians. Typically, their concerns are less about funding their lifestyle in retirement and more about how to protect and grow their wealth and pass it on to the next generation.
With a goal of estate and wealth planning rather than financial planning, the focus for HNW families is on utilizing tax strategies and insurance products to ensure the wealth is efficiently passed on to family members. Insurance can also be a tax-efficient way to ensure wealth is passed from the estate to heirs. That’s why HNW individuals often rely on insurance to pass on wealth far more than average Canadians.
Here are tax strategy guides for Canadians and US Citizens
1. Canadian Strategies
- Comprehensive financial planning
- Consolidation of assets
- Effective use of surplus assets
- Risk management
- Permanent Life Insurance
- Vacation home planning
- Charitable giving
- Testamentary trusts
- Family income splitting
- Business succession planning
2. US Strategies
- Minimize Use of Active Management for Brokerage Accounts
- Minimize Use of Taxable Bonds
- For High Net Worth Retirees: Send Your RMDs to Charity
- Use Your Roth IRA Conversion Opportunities While You Have Them
- Be Smart with Your 401k and Defined Contribution Plans
- Don’t Leave Your Tax Deferred Accounts to Heirs
- Cultivate Tax Losses to Offset Gains During the Year
