Core Curriculum Chapter 15 Flashcards
1
Q
WILLS - What are the three essential estate planning documents?
A
Will, Power of Attorney, and Personal Directive.
2
Q
ESTATE FREEZE - What is the purpose of an estate freeze?
A
It locks in current tax liability while transferring future business growth to heirs.
3
Q
BUY-SELL AGREEMENT - How does a buy-sell agreement benefit business owners?
A
It ensures smooth business succession in case of death, disability, or retirement.
4
Q
TAXATION AT DEATH - What happens to RRSPs and RRIFs upon death?
A
They are fully taxable as income unless transferred to a spouse or dependent child.
5
Q
CROSS-BORDER ESTATE ISSUES - What tax concerns exist for Canadians with U.S. property?
A
They may be subject to U.S. estate tax and probate laws.
