Learn estate planning fundamentals for the RSE exam. Understand wills, beneficiary designations, joint accounts, and tax implications at death.
Estate Planning for RSE
Understanding estate planning basics helps you serve clients better and recognize when to refer to specialists.
Why Estate Planning Matters
- Ensures assets go to intended beneficiaries
- Minimizes taxes at death
- Provides for dependents
- Avoids probate delays where possible
Beneficiary Designations
Registered Accounts
- RRSP/RRIF: Named beneficiary bypasses estate
- TFSA: Successor holder or beneficiary options
- Direct transfer to spouse: no immediate tax
- Other beneficiaries: deemed disposition
Segregated Funds
- Named beneficiary bypasses estate
- Potential creditor protection
- Faster distribution than through estate
Joint Accounts
Joint with Right of Survivorship
- Account passes directly to survivor
- Bypasses estate/probate
- Common for spouses
- Tax implications for non-spouse joint holders
Tenants in Common
- Each owner's share goes to their estate
- Doesn't bypass probate
- More control over final distribution
Tax at Death
Deemed Disposition
- Assets deemed sold at fair market value at death
- Capital gains triggered
- RRSPs/RRIFs fully taxable unless to spouse
- Principal residence exemption may apply
Spousal Rollover
- Assets can transfer to spouse tax-deferred
- Applies to registered and non-registered accounts
- Tax deferred until spouse disposes or dies
When to Refer
- Complex family situations
- Business succession planning
- Cross-border issues
- Trust structures
- Powers of attorney
Key Exam Topics
- Beneficiary designation rules
- Joint account types and implications
- Tax treatment at death
- Spousal rollover provisions
- Recognizing when to refer clients
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