Your executor is required to file a "terminal tax return" that declares all of the income you earned in the year up to your death. Any investments not left to your spouse or common-law spouse are treated as if they had been sold the day of your death. In both of these scenarios, capital gains can be onerous.

When planning your estate, discuss the following issues surrounding taxes:

• How naming your spouse or common-law spouse as the beneficiary on your RRSP or RRIF can lead to a preferable tax situation?
• Who you should bequeath assets with capital gains to, and who should receive assets without capital gains?
• How authorizing your executor to make one final investment into your spousal RRSP can benefit your estate?
• How charitable donations of cash or other assets can lessen your final payable taxes?