Publications

Wealth Themes provides timely articles on a variety of wealth planning topics. This month we feature articles that discuss strategies and considerations for wealth protection, and how to optimize your charitable giving strategy with insurance.

Over the next two decades, upwards of US$84 trillion globally is expected to pass from one generation to the next – both from the silent generation to boomers and from boomers to millennials.1 But before your hard-earned assets can be used by future generations, you’ll want to make sure they are passed down in the right way. You don’t want your family to squabble over your legacy or squander your estate away in a manner worthy of an episode of Succession.

One way for high net-worth and ultra-high-net-worth families to carve out an equal helping of the estate planning pie – and to reduce tension among family members – is with trusts. Wealthier families have long used these structures to maintain more control over their legacy and ensure money is distributed to family members according to the wealth creator’s wishes.

Entrepreneurs who have built successful companies often want to see their business passed effectively to the next generation. However, a sale or transfer of ownership of the business will generally trigger capital gains tax. If the value of the shares of your business has increased, you or your estate may be burdened with a substantial tax bill. The business may even have to be sold to cover the liability.

The 2023 Federal Budget Review was prepared by our in-house BMO Private Wealth tax professionals: John Waters, Vice-President, Director of Tax Consulting Services and Dante Rossi, Director, Tax Planning.

Finance Minister Chrystia Freeland presented her third Budget in the House of Commons on March 28, 2023, entitled “A Made–in–Canada Plan for a Strong Middle Class, Affordable Economy and Healthy Future”.