Question 1

Why choose Noulty Financial Solutions?

Accepted Answer

Working with our team provides a customized investment and insurance solution based on the priorities of your financial plan.  We keep our approach grounded, thoughtful and personal; focused on long-term relationships.

Question 2

Should we incorporate the farm or remain a sole proprietor/partnership?

Accepted Answer

Incorporating can be a big win for a lot of cases, but only if the numbers make sense. Typically, we take into consideration the following:Your farm income & your personal income needsIf the business is accumulating money year over yearSuccession planningLiability protection benefitsFor some farms, the savings can add up, but for others it doesn’t change much and can start to over complicate a simple operation. We walk clients through both scenarios so they can make a clear and informed decision.

Question 3

How do I pass the farm on to my kids without getting hit with a tax bill?

Accepted Answer

Succession & estate planning is one of the most common topics we cover with farming clients. The good news is that if your operations qualifies as a Qualified Farm or Fishing property, you can often transition the farm to the next generation on a tax-deferred basis.

Question 4

If that defers tax, then how do I minimize the tax for future generations?

Accepted Answer

For minimizing taxes owed by future generations if they were to sell the property. We can utilize tools like the Lifetime Capital Gains Exemption on each generational transition. This would increase the Adjusted Cost Base for the next generation. Using these tools requires planning in advance and a clear structure for the transfer to the next generation.We walk farm families through everyday financial decisions, corporate structure, generational transfer of the farm, how to structure the transfer, and how to make sure the farm remains a viable business for future generations.

Question 5

What is probate and how do I avoid paying it?

Accepted Answer

Probate is a word that comes up frequently when building an estate plan. But what exactly is probate?The best way to think of probate is as a “will activation fee”. It’s the fee the government charges to ensure your will is properly executed and your estate is properly passed on according to your wishes. This fee amounts to 1.5% of the fair market value of your estate (after the first $50,000 of value). Probate is a separate fee from any taxes due on your estate.While it isn’t possible to avoid paying probate on all types of assets, probate can be bypassed by some financial instruments. Jointly held bank accounts bypass probate, as well as financial instruments that have named beneficiaries. These include registered savings accounts like TFSAs, RRSPs and RRIFs as well as life insurance policies and other insured investment products.Is it important to avoid probate? Many different factors play a role in answering that question. Everyone’s situation is unique and it’s always best to consult a financial advisor to find the best options to reach your financial goals.

Question 6

I’ve recently updated my will and changed the beneficiaries of my estate. Do I need to change the beneficiaries on my investment accounts?

Accepted Answer

While it is important to keep your will up to date, this is not always enough to make sure your wishes for your estate are properly executed. When it comes to non-registered investment accounts, changing the beneficiary in your will is enough, but the story is different with registered accounts like RRIFs and TFSAs.RRIFs, TFSAs and other registered investment accounts have their own named beneficiaries. In most cases the beneficiaries named on these accounts supersede the beneficiaries named in your will. The same goes for life insurance policies. It’s always important to make sure that you keep the beneficiaries up to date on your registered investment accounts, insurance policies and in your will.Every Scenario is unique, and there are several different types of registered investments that require beneficiary updates separate from a will. It is always a good idea to check with your financial advisor to make sure you are updating your information correctly.

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Proudly serving clients in Ontario and beyond.

Proudly serving clients in Ontario and beyond.

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