Wills & Estate Planning w Estate Freeze (Ontario, Canada) 2018

Disclaimer
免責聲明
The contents of this presentation is for
information purposes only and does not
provide legal advice or create a lawyer-client
relationship with the viewer.
本簡報內容僅用作提供一般資料給讀者，
一概不屬法律意見，亦不構成任何律師與
委託人的關係。
Copyright 版權 2018 Landmark Law Professional Corporation 陸韻玲律師 1

Landmark Law Professional Corporation
Winnie J Luk, Principal Lawyer
Translation: Jasmine Chan
陸韻玲律師
翻譯：陳彥萱
Wills & Estates
遺囑與產業

Overview 概要
• Wills and Powers of Attorney 遺囑和授權書
• Why make a will?
為什麼要立遺囑？
• Major considerations in a will
遺囑主要考慮
• POA of Property and POA of Personal Care
產業授權書和個人護理授權書
• Tax-planning 稅務規劃
• FAQ’s 常見問題

Why make a will?
為什麼要立遺囑？
1. Care for Loved Ones & Honour your Wishes
照顧摯愛和尊重您的意願
• Guardian for children / support for family w special needs
子女監護權 / 支援有特別需要的家庭成員
• No Will = Government Decides
沒有遺囑＝政府決定
2. Eliminate Burden and Expenses
減低負擔和支出
• Clear Instructions will reduce disputes/litigation
清晰的指示會減低爭議/訴訟的機會
• Reduce administration and possibly Probate Fees
減低行政費，甚或遺產認證費

Major Considerations in a Will
遺囑的主要考慮
• Individual must be of sound mind / No duress or undue influence
當事人必須精神狀況良好/ 沒有受人威逼或不當影響
• Naming Beneficiaries/Guardian/Trustee
列明受益人/監護人/遺囑執行人
• Can be same person(s) acting jointly/severally
可以一人擔任，亦可多人共同/各別擔任
• Only lawsuit will police guardian/trustee
只有訴訟能管控監護人/遺囑執行人
• Distribution of Estate: Simple vs Detailed
產業分佈：簡單和詳細分佈的對比
• Affidavit of Execution and Exhibit Stamp required for probate
遺囑認證需要遺囑執行宣誓書和蓋印

Power of Attorney 授權書
• appointing someone the authority to make decisions on
your behalf while you are alive, especially when you
become mentally incapable
委任另一人，授權他在委託人有生之年代為做決定，
特別在委託人精神上無能力行事時
• “Attorney” does not have to be a lawyer. May be trusted
family member(s) or friend(s); may include substitute.
受權人不一定是律師，可以是一或多名家庭成員，
朋友等，亦可包括替代人

Power of Attorney 授權書
• Attorney’s power could be unlimited or
limited
受權人的權利可以分有限或無限
• No POA = government decides
沒有受權人＝政府決定

Types of Powers of Attorney
授權書的種類
1. Continuing Power of Attorney for Property (產業持續授權書)
• Appoint attorney to make finance decisions
委任受權人就財務代作決定
• E.g. tax returns, managing bank a/c, investments, real estate, business
例如：稅務申報，管理銀行戶口，投資，產業，生意等等
2. Power of Attorney for Personal Care (aka “Living Will”)
(個人護理授權書)
• Appoint attorney for personal care decisions (eg family member)
委任受權人(一般是親人)就個人護理代作決定
• E.g. health care, nutrition, shelter, clothing, hygiene, and safety
例如：健康，飲食，住宿，衣著，衛生，安全等等
• Decline artificial life support when no hope of recovery
在沒有生存希望的情況下，選擇放棄治療

Estate Administration Taxes
(aka Probate Fees)
產業行政費（遺囑認證費）
o When will is validated by court (ie to access bank a/c
or title deed), taxes must be paid
當法庭使遺囑生效（即授權查閱銀行帳戶/業權
契據）時，申請人須付相關稅項
Highest in Canada 加拿大最高:
0.5% < $50K estate; 1.5% > $50K estate
若產業少於5萬加幣，行政費0.5%；若產業多於5萬加行
政費1.5%

Estate Administration Taxes
(aka Probate Fees)
產業行政費（遺囑認證費）
Example 例子：
$1M estate = approx $15K tax
一百萬元加幣的產業＝大約一萬五千元加幣稅項
二百萬元加幣的產業＝大約三萬元加幣稅項
五百萬元加幣的產業＝大約七萬五千元加幣稅項

Common Tax-Planning Strategies
常用的稅務規劃策略
Reduction of Estate Admin Tax (aka Probate Fees)
減低產業行政費有(即遺囑認證費)
Jointly-owned assets (ie bank accounts, property)
共同擁有產業 (如銀行戶口，物業)
Dual Wills (aka Corporate Will)雙重遺囑
o Will #1 is Probated with taxable assets (bank a/c,
title deed)
遺囑 #1 需遺囑認證，包括應課稅產業 (銀行戶口，
業權契據)

Common Tax-Planning Strategies
常用的稅務規劃策略
o Will #2 is not probated with non-taxable assets
(private shares, art, jewellery)
遺囑#2 不需遺囑認證，包括不應課稅產業 (私人股份
, 藝術品, 首飾)
Intervivos Trust for Seniors 長者可以立生前信託
o Estate is legally owned by trust
o 法律上一切產業歸信託管理
o Avoid probate process
o 避免遺囑認證費

Multi-Jurisdictional Estates
跨司法管轄區的產業
• Canadian will does not apply to overseas assets
加拿大法律不適用於海外資產
• Foreign probate fees payable to foreign court
應按當地的遺囑認證費繳付外地法庭
• Recommended to get separate will prepared in
separate jurisdictions
建議在不同司法管轄區立不同遺囑

FAQS 常見問題
• Joint Assets/Beneficiary Designation to avoid probate
避免遺囑認證費：共同擁有資產/指定受益人
• Protect gifts from conversion to Net Family Property
防止餽贈轉換成淨家庭資產
• Divorce 離婚
• Residence Trust for blended families
混合家庭的居所信託
• Memorandum of wishes 意願備忘錄

• Used by business owners for succession planning or
to transfer company to the next generation.
企業主使用繼任計劃或者把公司轉讓給下一代
• Present value of the business owner’s common
shares are frozen and business grow is transferred to
the next generation
企業所有者普通股的現值凍結和業務增長轉移到下一代
Estate Freeze 財產凍結

• Estate Freeze reduces future capital gains tax
for both business owner and next generation
since both can deduct their lifetime capital gain
exemption upon disposition (upon sale or death).
房地產凍結降低了未來的資本利得稅，企
業主與下一代都在處置（出售或死亡）中
扣除其終生資本利得豁免
Estate Freeze 財產凍結

The Business Owner 企業主 :
• subscribes for new common shares (“Growth Shares”) and gifts
them to child(ren)
(the gift helps to prevent Growth Share from becoming Net Family
Property in the event of child's divorce)
認購新普通股（“成長股”）和贈送給孩子（們）
（禮物有助於防止增長份額變成孩子離婚時的家庭財
產淨額）
Estate Freeze Process
房地產凍結過程

The Business Owner 企業主 :
• exchanges old common shares for preferred shares (“Freeze
Shares”) where the FMV becomes frozen
交換舊的普通股為優先股（“凍結股份”）公平市場價值
就被凍結了
• If required, Business Owner can still maintain rights to
management and salary but cannot participate in dividends
如果需要，企业主仍能保持经营权和薪资但不能
分红
Estate Freeze Process
房地產凍結過程

FMV Today 今日公平市場價值 = $2M
Business Owner’s capital gain tax 企業主資本利得稅
= 50%*($2M - 850K lifetime exemption 終生豁免額
度) * marginal tax 終生豁免額度 (eg 50%)
= $287,500
Tax Savings Example 節稅實例

FMV 10 Years 終生豁免額度 = $5M
A. No Estate Freeze 終生豁免額度 :
50%*($5M - 850K lifetime exemption 終生豁免額
度) * marginal tax 邊際稅率 (eg 50%)
= $1,037,500

B. Estate Freeze & Sell in 10 yrs 房地產凍結10年後售出 :
Business Owner’s capital gain tax企業主資本利得稅
= frozen = $287,500
Child’s capital gain tax 孩子資本利得稅
= 50%*($3 (=5M-2M) - 850K lifetime exemption 終生豁免額度) *
marginal tax 邊際稅率 (eg 50%)
= $537,500

• Total capital gain tax 資本利得稅總額
• = 287,500 + 537,500 = $825,000
• Combined tax savings 資本利得稅總額
• = 1,037,500 - 825,000 = $212,500

• Deductions of lifetime exemption will multiple by the number
of children/beneficiaries.
减免额等于每个人终生豁免额将乘以孩子或受益人的个数
Also lower probate tax for business owner's estate [$287,500 vs
non-frozen value (eg. $1,037,000); Note: probate tax can be
eliminated be preparing a corporate will]
也降低企業所有者的遺產稅 $287,500 vs 沒有財產凍結的遺
產稅(eg. $1,037,000)
Note: probate tax can be eliminated be preparing a corporate will
注：遺囑稅可以取消，通過準備企業意志書的形式

Thank You! 謝謝!
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Landmark Law Professional Corporation
T | SMS | Whatsapp: 647 797 8LAW (8529)
93 Worthing Ave, Markham ON L3S 4J9
Winnie@landmarklaw.ca

Disclaimer
免責聲明
The contents of this presentation is for
information purposes only and does not
provide legal advice or create a lawyer-
client relationship with the viewer.
本簡報內容僅用作提供一般資料給讀者，
一概不屬法律意見，亦不構成任何律師與
委託人的關係。

Wills & Estate Planning w Estate Freeze (Ontario, Canada) 2018

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Wills & Estate Planning w Estate Freeze (Ontario, Canada) 2018