Life Insurance as a Source for Estate Relief
Everyone has heard the saying “there are only two certainties in life, death and taxes.” When we pass away most of our accumulated wealth is subject to income tax, probate tax or both.
There are some simple things we can do to reduce this inevitable tax bill on our estates:
- own certain non-registered assets jointly with a spouse or a child
- ensure the beneficiaries of our RRSP and RRIF accounts are our spouses
However, some taxes and expense are unavoidable when we pass away.
By putting a permanent insurance policy in place, your beneficiaries will have an influx of cash to relieve their financial stress at an already stressful time. A life insurance policy can pay for funeral costs and other final expenses. It can take some of the tax burden away from your estate as well as ensure your legacy wishes are met – such as paying for a child’s/grandchild’s education.
Major Expenses at Death:
- Funeral costs
- 1.5% probate fees on estate assets over $50,000
- Taxes on RRSP, RRIF, LIRA, LIF account disposition
- Taxes on the sale of non-registered investment assets with capital gains
This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of iA Private Wealth. Furthermore, this does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.
How do we elevate your wealth?
It begins with understanding your needs and creating a comprehensive and tailored financial plan to help reduce tax, manage risk and grow your portfolio over the long term. Learn more about how we help you achieve financial security and peace of mind.
News & commentary
February 2023 Portfolio Management Team Update
February 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth February 21, 2023 Market Review Global equities rebounded in January from the December selloff, getting 2023 off to a strong start, as investors grew increasingly confident that central banks would ease up on their interest-rate hikes. The TSX surged […]Read more
January 2023 Portfolio Management Team Update
January 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM®, Portfolio Manager, iA Private Wealth January 26, 2023 Market Review Global equities finished 2022 on a dismal note, capping an exceptionally challenging year as central banks around the world boosted interest rates sharply to combat the threat posed by surging inflation. The spike in […]Read more
2022 IAPW Tax Document Distribution Dates
2022 IAPW Tax Document Distribution Dates There are different mailing dates for different account types. Please click on the link below to view the expected delivery for both mail and online tax slips and reports. 2022 Important Yearend Information – Tax Document Distribution DatesRead more