Dabrowski & Associates, Financial Advisory Practice Inc.

ESTATE PLANNING MISTAKES THAT CAN COST YOUR FAMILY.

A small estate-planning mistake can create taxes, delays and family disputes after you're gone.

- NO WILL

Without a valid will, provincial law determines how your estate is distributed.

- OUTDATED BENEFICIARIES

Marriage, divorce, births and deaths can make old beneficiary designations inappropriate.

- “EQUAL” ASSETS ≠ EQUAL INHERITANCE

A $1M RRSP isn't necessarily equal to a $1M home.

Taxes can dramatically change what each beneficiary actually receives.

- NAMING MINOR CHILDREN DIRECTLY

Minors generally can't receive death benefits directly. A properly structured trust may be more appropriate.

- LEAVING A LARGE LUMP SUM

Some beneficiaries may not be ready to manage a large inheritance. Consider whether a trust or structured payout makes sense.

- NAMING YOUR ESTATE UNNECESSARILY

Where appropriate, direct beneficiary designations may help assets bypass the estate and potentially avoid probate.

- ADDING AN ADULT CHILD AS JOINT OWNER

It may appear to simplify your estate, but it can create tax, creditor and family-dispute risks.

- IGNORING TAXES AT DEATH

RRSP/RRIF taxation and capital gains can significantly change what your beneficiaries ultimately receive.

TAX BENEFITS OF ANNUITIES⬇️

An annuity isn't only about guaranteed income. After age 65, it may also create valuable tax-planning opportunities.

- CREATE LIFETIME INCOME

A life annuity converts a lump sum into guaranteed income for life.

That can help reduce the risk of outliving your retirement savings.

- CREATE ELIGIBLE PENSION INCOME

After age 65, the taxable interest portion of a qualifying non-registered annuity may be eligible pension income.

This may help you qualify for the:

Pension Income Amount — up to $2,000

- SPLIT INCOME WITH YOUR SPOUSE

Eligible annuity income may also qualify for pension income splitting.

You may be able to allocate up to 50% of eligible pension income to your spouse or common-law partner.

This can potentially reduce your combined household tax.

- POTENTIALLY REDUCE OAS CLAWBACK

With a prescribed non-registered annuity, only part of each payment is generally taxable.

An annuity isn't automatically right for everyone, but for the right retiree, it may provide:
GUARANTEED INCOME + TAX PLANNING + LONGEVITY PROTECTION

Let’s talk about RRSP to RRIF conversion as our RRIF setup can affect decades of retirement taxes.

Your RRSP must mature by the end of the year you turn 71.

Hera are RRIF strategies to consider:

- Use your younger spouse's age

RRIF minimums can be calculated using a younger spouse/common-law partner's age.

Younger age → lower required minimum → potentially more tax deferral.

- Reinvest money you don't need

Excess RRIF cash could potentially go into:

TFSA, if contribution room exists
RRSP, where eligible
Non-registered investments

- Split eligible RRIF income

At 65+, eligible RRIF income can generally qualify for pension-income splitting.

Up to 50% may be allocated to a spouse.

- Review beneficiary designations

When converting to a RRIF, make sure beneficiary/successor-annuitant designations reflect your estate plan.

A qualifying transfer to a spouse/common-law partner can potentially preserve tax deferral.

- Plan your final RRSP contribution

Money remaining inside the RRIF continues growing tax-deferred; withdrawals are taxable when taken.

RRSP to RRIF conversion isn't just paperwork. It's a tax-planning event.

What if post-secondary education isn't the next step? As students prepare for a new school year, some may choose a different path—whether that's entering the workforce, pursuing a trade, travelling or taking time to decide what's next.

If your child's plans have changed, it's worth understanding the options available for their RESP. Learn more: https://ow.ly/c9xz50ZwaKT.

The 1-Year Checklist After a Spouse Dies in Canada

Save this. Some estate, benefit and tax deadlines are time-sensitive.

FIRST 30 DAYS

☐ Obtain several copies of the death certificate / Statement of Death

☐ Locate the will, Powers of Attorney, account statements and beneficiary information

☐ Notify Service Canada and ask about the CPP Death Benefit & Survivor’s Pension

☐ Contact life insurance companies and start claims

☐ Notify employer and pension providers

DAYS 30–90

☐ Apply for eligible CPP survivor benefits

☐ Review your RRSP, RRIF, TFSA and insurance beneficiaries

☐ Update joint bank/investment accounts and review property ownership

☐ Review RRSP/RRIF rollover options available to a surviving spouse

☐ Notify the CRA and determine estate/probate requirements

3–12 MONTHS

☐ File the deceased’s final T1 tax return

☐ Review whether additional estate/trust tax returns are required

☐ Update your will and Powers of Attorney

☐ Reassess CPP/OAS, pensions and retirement income

☐ Rebuild your tax, investment and withdrawal strategy

THE TAX SHIFT MANY FAMILIES MISS

After losing a spouse, household income may decline—but the survivor can still face a higher tax burden.

Why? You may lose pension-income splitting, while RRIF withdrawals, CPP, OAS and investment income continue.

A surviving spouse needs a new retirement tax plan—not simply the old plan with one person removed.

Be aware‼️

🚨Be cautious when joining online groups or downloading new apps.

Scammers may create fake online communities or events to gain your trust and encourage you to install malicious software.

Before downloading an app:
✅Download only from official app stores
✅Be cautious of links sent through private messages
✅Verify requests through a trusted source
✅Talk to someone you trust if something doesn't seem right

➡️For more tips on how to protect yourself from fraud and scams: https://antifraudcentre-centreantifraude.ca/protect-protegez-eng.htm

People purchase life insurance because they want to make sure the people they love are financially protected if something unfortunate happens. Planning ahead to secure the well-being of your family is more than a transaction - it's an act of love❤️

The more cash you keep in your chequing account, the more you're basically lending to your bank for free…
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