Many health professionals, business owners and families spend decades building their wealth and making solid financial decisions to create growth and protect assets. When building an estate plan, creating a system to protect against the depletion of estate assets is often a top priority.
The estate can be depleted by taxes and other expenses that become due at the time of death. Without proper preparation, these costs can take a significant bite out of what’s left to pass on to the heirs.
Some costs are associated directly with the individual’s death, including end of life medical expenses, funeral expenses, and debts remaining unpaid at the time of death. Other costs are the result of administering the deceased person’s estate. These can include, outstanding medical expenses, funeral, credit card bills and others debts, federal and provincial estate taxes, executor’s fees, appraiser fees, court costs and provincial probate fees.
It is possible for small to medium size estates to be depleted by these costs before anything in the estate can be distributed to beneficiaries.
