Estate Planning
Estate planning is a crucial process that uses tax strategies, wills, and trusts to minimize tax liabilities at death and achieve the client’s desired distribution of wealth and property in an efficient manner. Life insurance is an integral part of this process. While most people think of life insurance as a financial instrument purchased to replace income, it is now held for investment purposes by large corporations, financial institutions, and wealthy Canadians. Permanent life insurance is an alternative investment to low-risk, low-yield, highly-taxed investments like bonds and GICs. It is a worry-free investment that can grow at an equivalent rate in excess of 10%, can be accessed tax-free, and passed along to families and favourite charities tax-free. The unique tax treatment of life insurance policies under Canada’s Income Tax Act makes it a key component in succession planning.
Investments and steps to consider when Estate Planning
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Permanent Insurance as an investment
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Tax minimization/elimination
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Succession Planning
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Personal Pension Plans (PPPs)
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Charitable Planned Giving
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