Financial Checklist for New Parents in Canada

Aug 6, 2026

What to Do Financially When You Have a Baby

A new baby brings a lot of joy, and a lot of new to-do lists. Most of them are about feeding schedules and car seats. But a few items on the list are about money, and they matter more than you might think.

You do not need to do everything at once. A newborn keeps you busy enough. The steps below can be spread out over the first few months. Think of this as a simple checklist you can come back to as you find the time and energy.

Check Your Beneficiaries

A beneficiary is the person who receives the money from your life insurance or certain registered accounts after you pass away. Many people set these up years ago and never look at them again.

Now is a good time to check. You may want to add your partner, update an older choice, or think through how money should be handled for your child. If you want money to go to a minor child, it may need to be managed through a trustee or other legal arrangement until the child is of age, depending on the asset and the province.

The key point is simple. Look at every policy and account that names a beneficiary, and make sure the names and instructions still match the life you have today.

Protect Your Family Income With Life Insurance

When it was just you, or just you and your partner, a gap in income may have been easier to manage. With a baby who depends on you, the stakes are higher. Life insurance can help protect your family financially if something happens to you, so they can keep up with housing costs, bills, and daily expenses.

For many young families, term life insurance is a common starting point. It covers you for a set number of years, often when your children are young and your financial obligations are highest. The premiums are usually lower than permanent coverage, which can make it easier to fit into a new-parent budget.

Your need for coverage often increases when you have a child. It is worth checking whether your current coverage, including any through work, would be enough to support your family for more than just the short term.

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Open an RESP for Education

A Registered Education Savings Plan, or RESP, is a common way Canadian families save for a child’s post-secondary education. One reason many parents use it is the government support that can come with it through education savings grants.

You do not need a large amount to begin. Even small, regular deposits can add up over time. Check canada.ca for the current grant rules, contribution details, and eligibility requirements.

Make a Will and Name a Guardian

This is the step many new parents put off, and it is one of the most important. A will helps set out who would care for your child and how your estate should be handled if you and your partner die.

For parents, the most important part is often naming the person you want to care for your child. In BC, a will can express your wishes about guardianship, but it is also important to work with proper legal advice so your will deals clearly with both the care of your child and the management of any money left to a minor.

If you already have a will, a new baby is a good reason to review it. Add your child, confirm your choices, and make sure your estate plan still reflects your wishes.

Review Your Work Benefits and Leave

Your job may offer more help than you realize. Many group benefit plans allow you to add a new dependent, but the deadline depends on the plan. Check with your human resources team or plan administrator as soon as possible after the birth so you do not miss the deadline for health and dental coverage.

Employment Insurance, or EI, also offers maternity and parental benefits for eligible parents. Parents can choose standard or extended parental benefits, and the timing and number of weeks differ between the two options, so it is important to review the current rules before applying.

Build Your Emergency Cushion

A baby comes with surprises, and some of them cost money. An emergency cushion is simply cash set aside for the unexpected, kept somewhere safe and easy to reach.

If you already have one, this is a good time to top it up. A larger family often means larger surprise costs. If you do not have one yet, start small. Even a modest amount set aside regularly can help keep a rough week from becoming a money crisis.

A Calm Way to Start

That is a full list, and you do not have to tackle it all at once. Pick one item this week. Maybe it is checking a beneficiary, or asking work about adding your baby to your benefits. Small steps, taken one at a time, can help build a stronger financial foundation for your growing family.

This content is provided for general informational purposes only. It is not intended to provide investment, tax, or legal advice, and should not be relied upon as such.

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How to Catch Up on Your RRSP Contributions

Jun 30, 2026

How to Catch Up on Your RRSP Contributions

If you have ever felt behind on your RRSP, you are not alone. Life gets in the way, rent, a mortgage, kids, a period of lower income, and RRSP contributions get pushed to the back of the list.

Here is the good news: unused RRSP contribution room does not disappear. It accumulates year over year, and many Canadians are sitting on far more room than they realize. Catching up on those contributions is one of the most straightforward ways to reduce your tax bill.

Here is how it works.

What Is RRSP Contribution Room?

Each year, the Canada Revenue Agency (CRA) calculates how much you are allowed to contribute to your RRSP. The formula is 18% of your prior year’s earned income, up to an annual maximum set by the government, which is updated periodically and published by the CRA each year.

If you do not contribute the full amount in a given year, the unused room carries forward to the following year. And the year after that. And so on.

This carry-forward provision is what makes catch-up contributions possible. Someone who has been contributing inconsistently over the past decade may have accumulated tens of thousands of dollars in available room.

How to Find Your Contribution Room

The most reliable way to see your available RRSP room is through your CRA My Account, the federal government’s online portal. Once logged in, look for your Notice of Assessment (NOA) from last year’s tax return. Your RRSP deduction limit for the current year is listed there explicitly.

If you have not set up a CRA My Account, the same information appears on the paper NOA mailed to you after your return is processed. You can also call the CRA directly to confirm your available room.

Your available room is the combined total of any room you did not use in prior years, plus the new room added based on last year’s income.

The Tax Benefit of Catching Up

RRSP contributions reduce your taxable income dollar for dollar. If you are in a 40% combined federal and provincial marginal tax bracket and contribute $10,000 to your RRSP, you reduce your taxable income by $10,000, which means approximately $4,000 less in taxes owed.

That is the core value of catching up. Every dollar of unused room you do not use is a tax deduction sitting on the table.

The benefit compounds over time as well. Money contributed to your RRSP grows tax-sheltered until withdrawn. The earlier it is contributed, the longer it has to grow without being taxed each year.

The RRSP Catch-Up Loan Strategy

One approach many Canadians use is an RRSP catch-up loan, a short-term personal loan taken specifically to make a large RRSP contribution all at once.

Here is the idea: you borrow a lump sum, deposit it into your RRSP before the deadline, and use the tax refund you receive to pay down a significant portion of the loan. If your refund covers half the loan, for example, you are left with only half the balance to pay off over the following months.

This strategy works best when:

  • You have a meaningful amount of carry-forward room built up

  • You are in a higher tax bracket, which produces a larger refund

  • You can realistically pay off the loan within 12 months

The interest on an RRSP loan is not tax-deductible, so the goal is to repay it quickly. Holding the loan for an extended period reduces the overall benefit of the strategy.

Many Canadian banks and credit unions offer RRSP loans specifically for this purpose, often at competitive rates and with repayment terms designed around the expected tax refund timeline.

Timing: The RRSP Deadline

RRSP contributions for a given tax year must be made by 60 days after December 31, which works out to March 1 in most years, or March 2 when the following year is a leap year. Contributions made in January or February of the new year can be applied to either the previous tax year or the current one, giving you some flexibility.

Many Canadians wait until close to the deadline to contribute. While this is common, making contributions earlier in the year, or throughout the year, means the money spends more time growing inside the plan.

Over-Contributing: What to Watch

There is one important guard rail: RRSP over-contributions above a $2,000 lifetime buffer are penalized at 1% per month on the excess amount. This rarely happens accidentally, but it is worth confirming your available room before making a large lump-sum deposit.

Your confirmed room from your most recent NOA, minus any contributions already made in the current year, gives you your remaining available room.

When an RRSP Makes the Most Sense

The RRSP is most valuable when you are in a higher tax bracket now than you expect to be in retirement. Contributing while earning at a high rate and withdrawing at a lower rate in retirement produces the greatest tax advantage.

If you are in a lower bracket now, it can sometimes make more sense to contribute to a TFSA first and save your RRSP room for higher-earning years. Both accounts have their place, and many Canadians use both, the RRSP for the tax deduction today, the TFSA for tax-free access later.

Putting It Together

If you have years of unused RRSP room, that room represents real tax savings that are still within reach. Catching up does not require a windfall. It can be done gradually, contributing more each year than required, or all at once using a short-term loan.


Check your CRA My Account for your current room, run the numbers on what a contribution would mean for your tax return this year, and decide whether catching up makes sense for your situation. The deadline comes every early March, and with every year that passes, the carry-forward room keeps growing.

This content is provided for general informational purposes only. It is not intended to provide investment, tax, or legal advice, and should not be relied upon as such.

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2025 Federal Budget Highlights

Nov 5, 2025

2025 Federal Budget Highlights

On November 4, 2025, the budget was delivered by the Honourable François-Philippe Champagne, Minister of Finance and National Revenue.

The 2025 Federal Budget focuses on stability, simplicity, and long-term growth. There are no broad tax increases or major new spending programs. Instead, the government is emphasizing restraint, modernization, and productivity.

For individuals and business owners, the goal is clear: help Canadians access benefits more easily, encourage investment in innovation and clean energy, and update trust and estate rules to maintain fairness across the system.

Economic Overview

Canada’s federal deficit is projected at $78.3 billion for 2025–26. The government aims to stabilize the debt-to-GDP ratio while maintaining funding for priorities such as housing, defence, and clean energy.

Spending will focus on programs that improve productivity, while efficiency reviews across departments are expected to reduce overlap and administrative costs. This marks a shift toward sustainable fiscal management and practical, targeted investments.

Personal and Family Tax Measures

Several measures are designed to make life more affordable, particularly for first-time home buyers, caregivers, and lower-income households.

Eliminating the GST for First-Time Home Buyers

First-time home buyers will not pay the 5 percent federal GST on new homes priced up to $1 million. For new homes between $1 million and $1.5 million, a partial GST reduction applies. This change provides meaningful savings and makes new construction more accessible for Canadians entering the housing market.

Home Accessibility Tax Credit

Starting in 2026, expenses can no longer be claimed under both the Home Accessibility Tax Credit and the Medical Expense Tax Credit. The rule prevents duplicate claims but continues to support renovations that make homes safer and more accessible for seniors or individuals with disabilities.

Top-Up Tax Credit

To balance the reduction in the lowest federal tax bracket—from 15 percent to 14.5 percent in 2025, and 14 percent in 2026—the government introduced a Top-Up Tax Credit to preserve the value of non-refundable credits such as tuition, medical, and charitable amounts. This temporary measure, available from 2025 through 2030, ensures Canadians receive the same credit value even as rates decrease.

Personal Support Workers (PSW) Tax Credit

A new refundable tax credit equal to 5 percent of eligible income, up to $1,100 per year, will be available for certified personal support workers beginning in 2026. The measure acknowledges the importance of care professionals and provides direct relief to those in long-term and community-care roles.

Automatic Federal Benefits

Starting in 2025, the Canada Revenue Agency will begin automatically filing simple tax returns for eligible Canadians who do not normally file. This will allow low-income earners and seniors to receive benefits such as the Canada Workers Benefit, GST/HST Credit, and Canada Carbon Rebate automatically. Those with more complex financial situations will continue to file regular returns.

Registered Plans, Trusts, and Estate Planning

The budget introduces several changes affecting trusts and registered plans—key tools in long-term financial and estate planning.

Bare Trust Reporting Rules

Implementation of new bare trust reporting requirements has been delayed. The rules will now apply to taxation years ending December 31, 2026, or later. This postponement gives individuals, trustees, and professionals more time to prepare for the new filing obligations.

The 21-Year Rule for Trusts

Trusts—particularly most personal or family trusts—are generally considered to have sold and repurchased their capital property every 21 years (a “deemed disposition”). This rule prevents indefinite deferral of capital-gains tax on assets that grow in value.

When property is moved on a tax-deferred basis from one trust to another, the receiving trust normally inherits the original 21-year anniversary date so that tax timing does not reset.

Some estate-planning arrangements have transferred trust property indirectly—for example, through a corporation or a beneficiary connected to a second trust—so that the transfer did not appear to be trust-to-trust. These arrangements effectively extended the period before capital gains would be recognized.

Budget 2025 broadens the anti-avoidance rule to include indirect transfers. Any transfer of property made on or after November 4, 2025, that effectively moves assets from one trust to another will retain the original 21-year schedule.

For families that use trusts in estate or business-succession planning, this change reinforces the importance of reviewing structure and timing. Trusts remain valuable for asset protection, legacy planning, and income distribution—this update simply ensures consistent application of the 21-year rule.

Qualified Investments for Registered Plans

Beginning January 1, 2027, all registered plans—RRSPs, TFSAs, FHSAs, RDSPs, and RESPs—will follow a single harmonized list of qualified investments. Small-business shares will no longer qualify for new contributions, though existing holdings will remain grandfathered. The update simplifies compliance and clarifies which assets can be held in registered accounts.

Business and Investment Incentives

For business owners, Budget 2025 provides opportunities to reinvest, innovate, and modernize operations, with emphasis on manufacturing, research, and clean technology.

Immediate Expensing for Manufacturing and Processing Buildings

Businesses can now claim a 100 percent deduction for eligible manufacturing and processing buildings acquired after Budget Day and available for use before 2030. This full write-off improves cash flow and encourages earlier expansion. The benefit will gradually phase out after 2033.

Scientific Research and Experimental Development (SR&ED)

The refundable SR&ED tax credit limit has increased from $3 million to $6 million per year, effective for taxation years beginning after December 16, 2024. This expansion strengthens support for small and medium-sized Canadian businesses investing in innovation and technology.

Tax Deferral Through Tiered Corporate Structures

To prevent deferrals of tax on investment income, new rules will suspend dividend refunds for affiliated corporations with mismatched fiscal year-ends. This ensures consistent taxation within corporate groups and aligns refund timing with income recognition.

Agricultural Co-operatives

The tax deferral for patronage dividends paid in shares has been extended to December 31, 2030, continuing to support agricultural co-operatives and their members.

Clean Technology and Clean Electricity Investment Credits

Clean-technology and clean-electricity incentives have been expanded to include additional critical minerals—such as antimony, gallium, germanium, indium, and scandium—used in advanced manufacturing and renewable energy production. The Canada Growth Fund can now invest in qualifying projects without reducing the amount of credit companies can claim, keeping the incentive structure attractive for green investment.

Canadian Entrepreneurs’ Incentive

The government has confirmed it will not proceed with the previously proposed Canadian Entrepreneurs’ Incentive. The existing Lifetime Capital Gains Exemption remains unchanged and continues to apply to the sale of qualified small-business shares.

Tax Simplification and Repealed Measures

To simplify administration and reduce complexity, two taxes are being repealed:

– Underused Housing Tax, beginning in 2025

– Luxury Tax on aircraft and vessels for purchases made after November 4, 2025

In addition, the Canada Carbon Rebate will issue its final household payment in April 2025, with no rebates available for returns filed after October 30, 2026. These changes are meant to streamline compliance and eliminate programs that were costly to administer.

Government Direction and Spending Priorities

Beyond taxation, the budget sets out the government’s broader policy priorities.

Downsizing Government: A comprehensive efficiency review is underway to eliminate duplication across departments and generate long-term savings.

Cuts to Immigration: To ease pressure on housing and infrastructure, temporary-resident levels will be reduced by about 20 percent over two years, while maintaining pathways for essential workers.

Defence Spending: Canada will invest an additional $7 billion over five years to strengthen NATO participation, Arctic defence, and cybersecurity. By 2030, defence spending is expected to reach 1.8 percent of GDP.

Oil and Gas Emission Cap: A phased-in cap starting in 2026 will allow companies to meet targets through carbon-capture and clean-tech investments rather than penalties.

Final Thoughts

For individuals, the most relevant updates include GST relief for first-time home buyers, improved benefit access, and continued tax relief for caregivers and support workers. For business owners, the focus remains on productivity—through immediate expensing, expanded SR&ED credits, and clean-tech investment incentives. For families using trusts or inter-generational structures, the clarified 21-year rule reinforces transparency in estate planning.

If you’d like to review what these changes mean for you or your business, please get in touch. We can look at your goals and make sure you’re well prepared for the year ahead.

This material is provided for general information only and should not be considered or relied upon as individual investment, tax, accounting, or legal advice. Before acting on any of the information presented, please obtain professional advice in the context of your particular circumstances.

Estate Planning for Business Owners

Oct 31, 2025

 

Estate Planning for Business Owners

What happens when the children grow up and they are no longer dependent on their parents? What happens to your other “baby”- the business? Estate planning for business owners deals with the personal and business assets. Business succession planning is different because it deals with your business assets only and can also take place while you’re alive. You need to have an estate plan regardless if you have a succession plan or not. Estate planning for business owners is typically more complicated because the estate plan needs to deal with:

  • Complex business and personal relationships
  • Bigger and more intricate estates
  • Tax issues
  • Business Succession

When putting an estate plan for a business owner together, one of the most difficult conversations is around fair or equal distribution of assets. What if one of the children are working in the business how do you treat them? Before you begin putting a plan in place, we always encourage open conversation and a family meeting between the parents and children to provide context behind decisions and therefore it minimizes the surprises and provides an opportunity for children to express their concerns.

We’ve put together an infographic checklist that can help you get started on this. We know this can be a difficult conversation so we’re here to help and provide guidance.

Adult Children

  • Fair vs Equal (also known as Equitable vs Equal) – like what’s considered to be fair may not necessarily be equal. ex. Should the daughter that’s been working in the family business for 10 years receive the same shares as the son who hasn’t worked in the family business at all?
  • Are the adult children responsible enough to handle the inheritance? Or would they spend it all?
  • Who works in the family business? Is it all the kids or just one of them?

Family Meeting

  • Encourage open conversation with parents and kids so context can be provided behind the decisions, there are no surprises and allows the kids to express their interests and concerns.
  • Facilitate a family meeting with both generations, this will help promote ongoing family unity after death and decrease the chances of resentment later.
  • Start looking at considerations for a succession plan for the business. (This needs to be documented separately.)

Assets/Liabilities

  • What are your assets? Create a detailed list of your assets, including your home, real estate, non-registered investments, TFSA, RRSP, RDSP, RESP, company pension plan, insurance policies, properties, and any additional sources of income.
  • What about shares in your business? How does this need to be addressed?
  • What are your liabilities? Create a detailed list of your liabilities such as:
  • Mortgage, Loans (personal, student, car), Line of Credit, Credit card, Other loans (payday, store credit card, utility etc.)
  • Did you personally guarantee any business loans and how does this need to be addressed?
  • Understand your assets-the ownership type (joint, tenants in common, sole etc.), list the beneficiaries for your assets
  • Understand your liabilities- are there any co-signors?

Make sure you have a will that:

  • Assigns an executor.
  • Provide specific instructions for distribution of all assets.
  • Consider a power of attorney for use when you’re incapacitated or otherwise unable to handle your affairs.
  • Always choose 2 qualified people for each position and communicate with them.
  • Ensure your will is up to date.

Taxes and Probate

  • How much are probate and taxes? (Income tax earned from Jan 1 to date of death + Taxes on Non Registered Assets + Taxes on Registered Assets, Taxes on Business Shares)
  • Are there any outstanding debts to be paid?
  • You’ve worked your whole life- how much of your hard earned money do you want to give to CRA?
  • How much money do you want to to give to your kids while you’re living?

Consider the following:

  • The use of trusts.
  • The use of an estate freeze if you wish to gift while you’re living.
  • The use of a holdco for effective tax planning.
  • Once you determine the amount of taxes, probate, debt, final expenses and gifts required, review your life insurance coverage to see if it meets your needs or if there’s a shortfall.

Execution:It’s good to go through this but you need to do this. Besides doing it yourself, here’s a list of the individuals that can help:

  • Financial Planner/Advisor (CFP)
  • Estate Planning Specialist
  • Insurance Specialist
  • Lawyer
  • Accountant/Tax Specialist
  • Chartered Life Underwriter (CLU)
  • Certified Executor Advisor (CEA)

Next steps…

  •  Contact us about helping you get your estate planning in order so you can gain peace of mind that your family is taken care of.

 

The opinions expressed are those of the author and not necessarily those of Assante Financial Management Ltd. This material is provided for general information and the opinions expressed and information provided herein are subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on the information presented, please seek professional financial advice based on your personal circumstances.

10 Essential Decisions for Business Owners

Sep 30, 2025

10 Essential Decisions for Business Owners

Business owners are busy… they are busy running a successful business, wearing lots of hats and making a ton of decisions. We’ve put together a list of 10 essential decisions for every business owner to consider; from corporate structure to retirement and succession planning:

  • Best structure for your business (ex. Sole Proprietor, Corporation, Partnership)
  • Reduce taxes
  • What to do with surplus cash
  • Build employee loyalty
  • Reduce risk
  • Deal with the unexpected
  • Retire from your business
  • Sell your business
  • Keep your business in the family
  • What to do when you’re retired

Financial advisors are uniquely positioned to help business owners, talk to us about your situation and we can provide the guidance you need.

Contact Us