Estates Made Simple
Welcome to the “Estates Made Simple” Podcast, hosted by Gordon VanderLeek, a licensed lawyer specializing in wills, estates and trusts, and Jenna Carvalho, an estate and trust consultant with over 10 years experience helping families secure their assets and plan for the future. We are a bi-weekly podcast that discusses the complicated and often confusing world of estate administration. Our goal is to provide you with the insight, knowledge and resources to help you navigate this complex process. Every episode we bring our unique perspective to provide listeners with unbiased information and practical tips to ensure success and mitigate risk. Even if you are not an executor, there will be topics of interest as you consider planning options for your own estate. Join us for helpful tips and important information on navigating estate administration so you can achieve peace of mind as an executor or administrator.
Estates Made Simple
Understanding Adjusted Cost Base (ACB) for Executors
Episode Summary
In this episode, Gordon and Jenna break down the concept of Adjusted Cost Base (ACB) and why it’s critical for executors managing estate assets. They discuss how ACB impacts capital gains tax, the importance of maintaining records, and how proper calculations can save the estate—and its beneficiaries—thousands in unnecessary taxes.
Executors will learn how to track ACB for real estate, investments, and other assets, ensuring they meet tax obligations accurately while protecting estate value.
Key Takeaways
✔ What is Adjusted Cost Base (ACB)?
- The original cost of an asset plus eligible capital expenses (e.g., renovations, legal fees).
- Maintenance and repairs do not count toward ACB.
✔ Why Does ACB Matter in Estates?
- Upon death, assets are deemed sold at fair market value, triggering capital gains tax.
- Accurate ACB tracking reduces taxable gains, lowering the estate’s tax liability.
✔ Where Executors Encounter ACB Calculations:
- Real Estate: Determining the original purchase price and adding eligible capital improvements.
- Investments & Stocks: Adjusting ACB for multiple purchases/sales over time.
✔ Best Practices for Executors:
- Gather documentation early—many records are lost or hard to retrieve.
- Work with an accountant early in the estate process to avoid tax filing delays.
- Estate planning tip: If you're making your own will, keep a clear record of asset costs and improvements to ease the burden on future executors.
Final Thoughts & Next Steps
Properly managing ACB can save the estate money and protect executors from filing mistakes. Start tracking early and consult professionals to ensure accurate reporting.
Subscribe & Follow
Thank you for tuning in! Subscribe to Estates Made Simple on your favorite podcast platform or YouTube.
📌 See you next time! 😊
Hosts:
Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
Facebook
LinkedIn
Instagram
Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
Facebook
LinkedIn
Instagram