{"id":1309,"date":"2021-04-07T19:31:15","date_gmt":"2021-04-07T19:31:15","guid":{"rendered":"https:\/\/www.ayurfinancial.ca\/?p=1309"},"modified":"2021-04-07T19:31:16","modified_gmt":"2021-04-07T19:31:16","slug":"tips-for-making-the-most-of-your-inheritance","status":"publish","type":"post","link":"https:\/\/www.ayurfinancial.ca\/tips-for-making-the-most-of-your-inheritance\/","title":{"rendered":"Tips for Making the Most of Your Inheritance"},"content":{"rendered":"\n
Canada is in the midst of the Great Wealth Transfer, with an estimated $1 trillion in personal wealth passing from one generation to the next by 2026 as high-net-worth baby boomers leave their estates to Generation X and millennial heirs. If you\u2019re among those expecting to receive an inheritance, planning ahead for how you will use the wealth and account for any taxes will help you make the most of your windfall.<\/p>\n\n\n\n
If you stand to inherit a significant amount of money, earmark it toward financial goals ahead of time so you\u2019ll be confident you\u2019re putting it where it will do the most good. Here are a few options to consider:<\/p>\n\n\n\n
Save for retirement. <\/strong>Use your windfall to help you boost savings in a tax-advantaged retirement account, such as an RRSP. In 2021, your tax-deductible contribution limit is equal to 18% of last year\u2019s income or $27,830, whichever is smaller, plus <\/em>last year\u2019s unused contribution room. Money invested in the account grows tax-deferred until you retire.<\/p>\n\n\n\n Real estate can make a more complicated inheritance. Here are two important questions to help you prepare to inherit a house:<\/p>\n\n\n\n Before you can be sure exactly how much you\u2019ll be getting from an inheritance, you have to consider the tax bill. How much you might owe depends on several factors:<\/p>\n\n\n\n Planning for inheritance is an important part of keeping on top of your personal finances, helping you decide how much you need to save for your financial goals and what you need to do now so a bequest can do the most good in the future.<\/p>\n\n\n\n SOURCES<\/p>\n\n\n\n https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/registered-plans-administrators\/pspa\/mp-rrsp-dpsp-tfsa-limits-ympe.html<\/a><\/p>\n\n\n\n https:\/\/www.investoreconomics.com\/reports\/household-balance-sheet-report-2019\/<\/a><\/p>\n\n\n\nIf you will inherit a house\u2026<\/strong><\/h2>\n\n\n\n
Managing taxes<\/strong><\/h2>\n\n\n\n