William Green, CFP, FMA, FDS, CIM

There are only two things in life that are certain, Death and Taxes. While each of these is bad enough on its own, when combined it’s a double whammy. Just at a time when your family is likely at its most vulnerable, and possibly in need of emotional and financial support, they could be dealing with the government and paying the biggest tax bill they will ever see.

The Success Tax that I am referring to is the tax that we all pay if we are successful in our investing and have assets that are going to be taxable when sold or when deemed to have been sold.

The Success Tax takes one of two forms. The first form is deferred taxation on registered products such as RSPs, GRSPs, LRSPs, RIFs, LIFs and other similar retirement tax-sheltered vehicles. The second form of the Success Tax is the tax on deferred Capital Gains. This tax effects such assets as stocks, mutual funds, art, antiques, collectibles, real estate, private businesses and sometimes even bonds. While there is no hiding from the Success Tax, there are several things that can be done to help legally reduce or even eliminate the amount that your estate or your heirs pay.

The Success Tax Shuffle is not a way of avoiding taxes that are legally due, nor is it a donation tax scheme. The Success Tax Shuffle is the process of arranging your assets and affairs in order to take advantage of the current tax laws, tax credits, deductions and other estate planning tools with a view to reducing or even eliminating the Success Tax. This will allow more of your hard earned assets to go to those you love and not those you love to hate.