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Tax Planning

Tax Planning Involving Family Trusts

Trusts are often used in tax and estate planning because of the flexibility they offer over the control, management and distribution of appreciating assets. In an estate planning context, trusts can be used to provide control and protection of assets, reduce probate fees at death or serve as a Will substitute, and as a vehicle to transfer wealth to future generations. From a tax planning perspective, in the right circumstances, trusts can be used to facilitate income splitting by spreading income amongst family members who are taxed at lower marginal tax rates, thereby reducing the family’s overall tax burden. In particular, the use of a discretionary family trust to reduce the after-tax cost of children’s educational and other expenses is a common tax strategy and the focus of this publication.

Retirement Planning

Strategies for Your Retirement Savings Plan

A formalized savings plan that uses a registered plan, such as a Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA) or a Registered Retirement Income Fund (RRIF), is one of the soundest ways to realize your retirement goals. Here are some strategies you can use to maximize the benefits of your RRSP, TFSA and RRIF.

Common topics adult children may need to discuss with their aging parents

Consider the following suggestions on how to approach some common topics that you may need to discuss with your aging parents.

Philanthropy

Donating Appreciated Securities

The benefits of making a charitable donation are countless – from helping those in need to the personal satisfaction of giving back to the causes that are important to us. Charitable giving also makes good sense from a tax perspective. With proper planning, you can reduce your total income tax liability and maximize the value of your donation.

Maximize Charitable Giving using a Holding Company

A small business can be an extraordinary opportunity for creating wealth. Small businesses are also the biggest creator of jobs in Canada. Almost 60% of Canada’s small and mid-sized business owners are aged 50 or older, nearly double the proportion of the overall workforce, indicated in a 2017 BDC study on The Coming Wave of Business Transitions in Canada. Furthermore, according to the Canadian Federation of Independent Business (CFIB), approximately 50% of business owners plan on exiting their business in the next five years with more than 75% planning to exit within the next 10 years. This provides a great opportunity for effective tax planning and charitable gift planning strategies for business owners.

BMO Charitable Giving Program

Philanthropy is an important financial planning consideration for many Canadians, and an integral part of their wealth management plan. A Charitable Gift Fund (“donor advised fund”), established through the BMO Charitable Giving Program, allows you to create a flexible and customized philanthropic solution that will have a lasting impact on causes that matter to you and your family.

Financial Planning

Looking Forward to Life’s Milestones

Life is a journey, with each of us choosing our own unique path. Your personal journey will be shaped by the decisions you make during significant milestones, and how you navigate through the detours you may be faced to take along the way. As a result, it’s important to understand some of life’s milestones to ensure you’re better prepared to navigate your way through these important crossroads.

Education Planning

Education Planning For the Children in Your Life

Most parents hope their children will pursue higher education – and for good reason. A post-secondary education can prepare your child for a fulfilling career, lead to enhanced earnings potential and, ultimately, steer them on the path to a successful and rewarding life. However, if adequate savings are not in place for post-secondary education, your children could graduate with the added stress of carrying significant student debt before they’ve even secured their first job.

Business Advisory & Succession Planning

As a business owner, what’s your succession and transition plan?

Retiring from your own business can be difficult after having invested the better part of your working years to achieve success. And, business owners who want to pass on that successful business may be faced with a bigger dilemma of if and how to transfer the wealth they have accumulated through their business. A number of critical factors need to be considered including how they will exit from their business, the valuation of the business, family considerations and expectations and their own retirement plans.

Individual Pension Plans A Retirement Savings Option For Business Owners

An Individual Pension Plan (“IPP”) is a registered pension plan established for a single plan member, and provides an effective way for your business to fund your retirement pension while reducing corporate income taxes.

COVID-19 Update

COVID-19 Podcast

February 02: In this episode, Sylvain Brisebois, National Sales Manager, BMO Private Wealth is joined by Larry Zelvin, Head, BMO Financial Crimes Unit, for an insightful discussion on the rise in cybersecurity threats and steps we can take to better protect ourselves in the digital world.

Tax Planning Strategies

Canadian Snowbirds and U.S. Income Tax

Although Canadian snowbirds reside in the U.S. for only a part of the year, there is the potential of being considered a U.S. resident and, in turn, having to pay U.S. income tax on the same basis as a permanent U.S. resident. This article outlines how the U.S. government determines whether you are a resident for income tax purposes; namely, it covers the criteria for meeting the Substantial Presence Test, Closer Connection Exception and the Canada U.S. Income Tax Treaty Tie-Breaker Rules.

Managing Your Wealth

Wealth Themes

Wealth Themes is a monthly compilation of timely articles and tools from our experts and other BMO Financial Group partners.

How Critical Illness and Disability Insurance Fit Together in a Wealth Plan

How Critical Illness and Disability Insurance Fit Together in a Wealth Plan explains the differences between these two types of insurance, and how they can work and complement each other in a wealth plan.

Estate & Succession Planning

Engaging the next generation

Are they prepared? Children and grandchildren need to get ready for their roles as inheritors.

Research

Rates Scenario

Fixed Income and Foreign Exchange Strategy. Outlines the firm’s short and medium-term interest rate and foreign exchange rate forecasts.

Economic and Market Updates

Portfolio Strategy

Strategic commentary and an overview of financial markets.

Equity and Fixed Income Strategy

Strategic commentary on fixed income and an overview of fixed income markets.

Global Markets Commentary

The monthly Global Markets Commentary provides an overview of recent global events and their impact on the markets.

Investment Strategy: 2021 Market Outlook

BMO’s outlook on the equity markets featuring Brian Belski, Chief Investment Strategist, to help you prepare for the coming year.

Education and Knowledge

Networth Newsletter

A quarterly publication written by BMO Subject Matter Experts on a variety of timely and relevant wealth management topics.

Teaching your children about money

When a child starts to receive or earn their own money through an allowance, family gifts or a part-time job, their natural instinct is to spend it all. However, it’s never too early to start teaching children the importance of savings, and to respect the fact that money can also serve other goals, like sharing it to help others.