Specialized wealth services for lawyers

We have experience advising lawyers and can provide strategies to help you succeed financially at all stages of your legal career.

Rely on us for assistance with debt management, tax-conscious portfolio management, integrated wealth planning and bespoke banking from a network of experts under one roof We also provide tax planning, consulting regarding the benefits of incorporation, real estate and practice valuations, cash flow management, children’s education planning, retirement and estate planning, and general financial advice for you and your family as needed.
 

Debt resolution

Law school tuition has increased significantly, so your wealth plan should include a student loan repayment strategy to shorten the time spent making payments so you can begin contributing to your portfolio sooner and benefit from long-term compound growth. On top of your student loans, you may also have a mortgage, car loan, or other debts to repay. We will develop a consolidated plan to pay down your debt which includes a repayment schedule for all that you owe.
 

Cash flow management

Lawyers can earn significantly higher incomes than most people, yet they often spend more, too. Their busy lifestyles and high-pressure profession can prompt them to spend on expensive conveniences, lifestyle enhancements and entertainment.

We will help you budget to balance your short-term lifestyle needs with your long-term life and legacy goals; manage cash flow between your professional, personal and trust accounts; and advise you on the best way to use the extra cash flow when your practice starts generating growing revenues.
 

Insurance

Your wealth plan should include insurance coverage to protect you, your loved ones, and your practice should unforeseen crises occur, such as illness, injury or a malpractice suit. Insurance can also be a very effective and tax-wise estate planning tool. When an added measure of sophistication is required, we will introduce you to a trusted BMO Private Wealth Estate and Insurance Advisory specialist.
 

Tax minimization

Beyond contributing to a Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA) or Individual Pension Plan (IPP), we can offer a wealth of tax planning strategies you can use to further mitigate tax.

When you are incorporated, you can pay yourself through your corporation, and own stocks directly rather than through a mutual fund or pooled fund. This brings you much greater tax flexibility and efficiency. You can opt to receive your income through dividends rather than through income or capital gains, which are taxed at much higher rates.

We will work with the expert tax planners at BMO Private Wealth to ensure your corporation and portfolio are structured to maximize every allowable tax advantage.
 

Retirement planning

We will help you determine what you need to accumulate to enjoy the lifestyle you envision for your retirement and then build a prudent, income-generating portfolio to fund the steady stream of needed liquidity. Lawyers often have above-average expenses and start investing later in life than other investors, so diligent retirement planning is extra important. We will work with High-Net-Worth Wealth Planners to ensure you meet your goals without running the risk of outliving your savings.
 

Individual Pension Plans (IPPs)

If you are a professional who owns and operates your own practice, an IPP can be a beneficial strategy to provide financial security in retirement.

An IPP allows you to:

  • Contribute more tax-deductible assets annually than an RRSP
  • Adjust your annual contribution amounts according to available capital
  • Enjoy the highest degree of creditor protection in Canada
  • Invest in asset classes that are not allowed in an RRSP
  • Deduct your investment, pension management and other IPP fees
  • Enjoy the assurance of having fiduciary oversight from the pension committee and compliance officers
  • Transfer wealth to your loved ones without triggering a tax event

 

Estate planning

Crafting a thoughtful and tax-conscious estate plan that ensures your wealth will be distributed according to your precise wishes is a high priority. We will consult regarding your Will, beneficiaries, and powers of attorney and ensure all the details are correct and up to date. We can also introduce you to professionals from BMO Trust Company to help administer your estate and provide trusts in complex situations.