Hello!

Joint Ownership: Simple in Theory, Complex in Practice

Joint ownership with an adult child is often viewed as a straightforward way to manage financial affairs or simplify estate planning. However, what appears simple can introduce unintended legal and tax consequences.

While intentions are important, joint ownership arrangements, particularly those with right of survivorship, can create complications related to control, taxation, and estate distribution. In some cases, these arrangements may not achieve the outcome originally intended.

The article from Manulife Investments provides a concise overview of key considerations, potential risks, and alternative approaches.

If you are considering or currently have a joint ownership structure in place, it may be worthwhile to review how it fits within your broader financial and estate plan.

Trust Reporting and Tax Planning Considerations

With the 2025 tax season now behind us, this is an ideal time to look ahead and consider steps that may simplify future filings.

One area receiving increased attention is the use of bare trusts. In some situations, individuals may have unintentionally created a trust arrangement, particularly through joint ownership or informal structures, without realizing the associated reporting requirements.

Recent changes have introduced expanded T3 trust reporting obligations, which may result in additional administrative complexity and cost if applicable.

The Government of Canada outlines what has changed and who may be affected.

If you have questions about whether these rules apply to your situation, a review may help clarify your obligations and avoid unexpected reporting requirements.

Post-Tax Season Planning Opportunities

Following the completion of the 2025 tax season, many clients are looking for ways to reduce or better manage future tax balances.

For those who owed tax this year, or prefer to avoid a large balance owing in the future, there are several simple planning options to consider:

• CPP and OAS recipients may request additional tax withholding at source

• Employees can request additional payroll tax deductions through their TD1 form

• Some retirees and investors may also wish to review tax instalment strategies  and retirement cash flow timing

   

By adjusting tax withholdings gradually throughout the year, it may be possible to reduce or eliminate a balance owing at filing time while also improving cash flow predictability.

In some cases, investors may choose to keep their funds invested until tax payment deadlines instead of paying taxes well in advance. This approach can help minimize opportunity costs by avoiding the need to hold excess cash earlier than necessary.

As every situation is different, tax payment and cash flow strategies should be reviewed alongside retirement income, investment, and estate-planning considerations. If you would like assistance reviewing these options, your advisor would be pleased to discuss what approach may be suitable for your circumstances.

Consumer Protection and How Your Assets are Safeguarded

In addition to planning considerations, clients often ask how their assets are protected.

Canada’s financial services industry provides multiple layers of consumer protection. While many are familiar with coverage through the Canada Deposit Insurance Corporation (CDIC), fewer are aware of the protections available through the life insurance industry.

Assuris, the not-for-profit organization that protects Canadian policyholders, provides coverage for many types of insurance and investment products issued by member companies.

To learn more, please refer to the resources below.

Advisor’s Corner - Your Questions Answered

A practical estate planning discussion

Q: Does “fair” mean equal when planning my estate?

I have three adult children with very different financial situations. One is financially secure, another is going through a difficult period, and my youngest has a child who will require lifelong support.

I am financially comfortable and would like to provide for my children, grandchildren, and my sister, as well as leave a gift to BC Children’s Hospital Foundation, which supported our family.

My question is: does being fair mean giving everyone the same inheritance, or should I consider their individual needs?

A: A thoughtful and important question

Thank you for sharing such a detailed overview of your situation. Many families face similar considerations, and there is no single “correct” approach, only what aligns best with your values and intentions.

1. Reviewing your will
Given that your will was prepared some time ago, it would be advisable to review and update it to reflect your current circumstances, assets, and wishes. This includes confirming your executor, beneficiaries, and how your estate is to be distributed.

2. Fair does not always mean equal
You have the flexibility to determine what “fair” means in your situation. Some individuals choose equal distributions, while others allocate assets based on financial need, family dynamics, or specific goals.

3. Structuring support for different needs
In more complex family situations, planning tools, such as trusts or structured distributions, may help ensure that funds are used in a way that supports each beneficiary appropriately, particularly where ongoing care is required.

4. Role of investments and estate planning tools
Certain investment structures, including segregated funds, may offer estate planning benefits such as beneficiary designations and potential efficiencies. These may be appropriate depending on your overall objectives.

5. Life insurance considerations
Life insurance can also play a role in balancing an estate, particularly where specific bequests or equalization between beneficiaries is desired.

6. Developing a broader estate plan
If you have not already done so, developing a comprehensive estate plan can help bring together all elements (legal, financial, and personal) into a coordinated strategy.

7. Family communication
Some individuals choose to discuss their plans with family members in advance to provide clarity and reduce the potential for misunderstandings. This is a personal decision, but one that can be helpful in certain situations.

8. Charitable giving
Your intention to support BC Children’s Hospital Foundation is meaningful. There may be tax-efficient ways to structure charitable gifts as part of your overall estate plan.

Every situation is unique. If you would like to explore how these considerations apply to your circumstances, we would be pleased to work with you in developing a plan that reflects your goals and priorities.

Click here to access your reports using your Client Online Access Credentials.

Your investment reports are available through your secure client portal, providing convenient access to your account information and documents.

Ongoing Report Access

Within the client portal, you can access:

• Monthly reports – posted within the first 6 business days of each month

• Quarterly and bi-annual reports

All reports are securely stored in the Documents section of the portal for easy reference at any time.

Need Help?

If you need assistance setting up access or locating a document:

• Call Lorena at (604) 581-2134 or 1-800-561-1177, or

• Email us for support

We are happy to help you access the information you need

If any of the topics in this edition are relevant to your situation, we invite you to connect with your Financial Advisor to review them in more detail.

If there are topics you would like us to address in a future edition, please feel free to Reach Out. We always appreciate your feedback.

Global Pacific Financial Services Ltd.

Building and preserving wealth together.

Established 1975

Travel Plans? Don’t Forget Travel Insurance!

Heading out on a winter getaway? Travel insurance is a must, especially when the unexpected happens.  We offer travel insurance coverage through a selection of trusted providers, including Allianz Global Assistance, TuGo, and Manulife Insurance, giving you access to competitive options tailored to your travel needs.

• Already have health and dental coverage? You might have some travel protection built in but it may need a top-up.

• Don’t have a plan? We can help you find the right one.

Travel | Direct Purchase

Why Buy Travel Medical

Insurance | Global Pacific

Travel Insurance Information:

Travel insurance availability and purchase options may vary by province due to regulatory requirements. As a result, some direct purchase links may not be accessible in all regions.

Global Pacific Financial Services (“Global Pacific”) is licensed in multiple provinces across Canada and can assist clients with general information and guidance. In British Columbia, travel insurance solutions may also be provided through our affiliated firm, Macnaughton & Ward Financial Services (MWFS), which is licensed in BC.

If you have upcoming travel plans or would like assistance reviewing coverage options, please contact our office. We will ensure you are supported by the appropriately licensed team.