Provide for your family; Provide estate transfer 

 While insurance can be used in your younger years to cover unexpected loss of income, insurance products can also provide the funding to smoothly transfer assets like a cottage or farm to your adult children.  Insurance investments allow you to name beneficiaries and avoid probate.  Since insurance is a complicated subject with many alternatives, we suggest you contact us for a personal needs analysis.  

 

Be Careful with Joint Ownership

Many clients like the idea of adding adult children as joint account holders, as a convenience or to avoid estate costs.  There have always been risks with this strategy: 

– it can incur a taxable disposition

- tax on the account may still be attributed back to the higher-income parent

- there is a risk of loss of control of the asset

- you become exposed to creditors of your joint account holder, including marital separation disputes

Recent changes have made this strategy more risky from an estate planning view.  If it is a joint account simply for convenience, disputes can arise as to whether or not the parent intended to give ownership to the joint account holder.  It is important to distinguish between true joint ownership or essentially a trust where one is managing assets on behalf of the other and there is no intent to change ownership.    If the joint account that is acting essentially like a trust, then the assets must flow through probate, and fees will apply. 

Gradual Inheritance

Many clients have worked a lifetime and want your loved ones to be comfortable, but may be concerned about how fast the inheritance might disappear.  This could happen for a number of reasons, if your adult child is in a poor marital situation, has a habitual spending or debt problem, or is physically or mentally incapable of managing a large portfolio.  The Annuity Settlement Option is a type of structure that provides monthly income to your beneficiary over a period of time, without the costs of setting up a Trust.  For those who prefer to hold onto their portfolio as long as they live, in case they should need it for their own care, but want to transfer the inheritance to their beneficiaries gradually after they're gone, read on!  

Increase the funds available to your heirs

If you have savings or extra income you don’t need for lifestyle purposes, here’s information about a financial planning strategy that will increase the funds available to your heirs or favourite charity when you die.  To learn more, click here or feel free to contact us.

Looking for a simple and effective way to give

Whether you choose to support the causes close to your heart while you're alive or once you've gone on, it's worth it to look at the various methods of charitable giving in Canada.  A Charitable Giving Fund is a donor-advised giving program that is a simple and convenient way to combine immediate tax benefits  and a lasting legacy.  Find out more here. 

 

Protect yor Legacy

Take advantage of segregated fund contracts to empower your bequests.  Avoiding probate can save both time and money for your estate and for your beneficiaries.   If you would prefer that your beneficiary receives monthly income, instead of a lump sum that may be hard for them to manage, check out how segregated contracts can provide a Gradual Inheritance.  In addition, segregated fund contracts have a built in death benefit guarantee and are creditor-proof.  Find out more here.

 

Naming a Beneficiary

   You likely know you can name a beneficiary for your RIF and TFSA accounts, but normally your  non-registered accounts are taxable prior to being passed to your adult children.  In particular, if you sell your home to rent in your later years, these non-registered cash proceeds can become subject to probate taxes.  However, you can use Manulilfe segregated fund contracts to bypass probate and save money.  When you name a beneficiary with a segregated fund contract, you can keep more of your money in your family.  Find out more about the Value of Naming a Beneficiary here. 

Estate Planning Video

This video easily shows how to avoid common wealth transfer mistakes

Watch Now

Estate Planning 10 Steps

This brochure outlines ten simple steps to estate planning.

Click Here

Calculate the risks:

This handy calculator can show your statistical risk of death, disability, or critical illness:

http://www.insureright.ca/what-is-your-risk/

Charitable Giving Tax Calculator

Have a look at the after-tax cost of a charitable donation with this easy calculator.

Manulife GIF Select EstatePlus

EstatePlus is a highly effective estate planning solution that can help you provide for your family and loved ones and help ensure that your estate is protected.

Features and Benefits of EstatePlus:

100% Death Benefit Guarantee - With EstatePlus, you receive a 100% Death Benefit Guarantee. This means your beneficiaries are guaranteed to receive 100% of your deposits to the EstatePlus Series – reduced proportionally for withdrawals – even if there are market downturns.

Estate benefits – In the event of death, the proceeds of the contract can privately1 pass directly to designated beneficiaries, without the time delay and expense of probate.

Fund selection – You have a broad choice of over 40 investment funds from many of Canada’s top fund managers. EstatePlus offers a range of assets classes with a variety of fixed income and balanced funds, asset allocation portfolios and fund bundles.

Creditor protection – EstatePlus has the potential to protect your assets from creditors. This feature is ideal for professionals and small business owners looking to help protect their personal assets from professional liability.

Flexibility – Should you need to, you can access your savings at any time (fees may apply).

For more information about Manulife GIF Select EstatePlus, please contact us.
 

1 In Saskatchewan, jointly held property and insurance policies with a named beneficiary are included on the application for probate despite the fact that these assets do not flow through the estate and are not subject to probate fees.