Ep 10 Estate Taxes

Episode Summary: Understanding Estate Taxes

The number one question I get in my practice is about estate taxes—and in this episode, Kelly and I break it all down. We cover:

• What exactly the inheritance tax is (and isn’t)

• Probate fees (Estate Administration Tax or EAT): the first $50,000 of your estate is taxed at 0.5%, and everything above that is taxed at 1.5%

• How to reduce probate fees—a question I get all the time from clients

• The role of beneficiaries and joint ownership (with a spouse or family members)—what you need to know, and the potential risks involved

  • For example, putting your home in your child’s name to avoid probate may disqualify them from first-time homebuyer benefits

  • It may also result in capital gains tax if that property is no longer considered their principal residence

We also dive into:

• Why estate planning isn’t just about taxes—wills can be contested, assets may be frozen until probate is complete, and funeral costs can catch families off guard

• The two taxes to be aware of at death: your final personal income tax return (T1 terminal return) and estate taxes

• Why the wealthiest people buy life insurance as a strategic planning tool

• The importance of working with a professional—this is not the time to rely on “advice” from friends or social media

It may all sound daunting—and that’s exactly why we encourage people to start early. Many panic as they get older and their wealth grows, but delaying only makes it more expensive and stressful later on.

Start now. It’s worth it.