Skip to content
News & commentary

Life Insurance as a Source for Estate Relief

Home News & Commentary Life Insurance as a Source for Estate Relief
Ryan Smillie

Ryan Smillie

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
  • Taxes on deemed disposition of secondary real-estate assets

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

May 2024 Portfolio Management Team Update

May 2024 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Senior Portfolio Manager, iA Private Wealth May 17, 2024 Market Review Global equities fell in April after five straight months of gains, as concerns about sticky inflation and receding optimism about interest rate cuts by the Federal Reserve sapped investor sentiment. However, markets have […]

Read more

April 2024 Portfolio Management Team Update

April 2024 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Senior Portfolio Manager, iA Private Wealth April 10, 2024 Market Review Global equities advanced for the fifth straight month in March, capping a stellar quarter for stocks and enabling the MSCI All-Country World Index to post a record high on the last trading day […]

Read more

March 2024 Portfolio Management Team Update

March 2024 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Senior Portfolio Manager, iA Private Wealth March 20, 2024 Market Review Global equities advanced for the fourth successive month in February, as growing confidence in a “soft landing” for most major economies took the MSCI All-Country World Index to a new high. The TSX […]

Read more