Retirement & Estate Planning
Are you concerned that your family will be burdened by taxes when you are no longer there?
One way to help your family handle the burden of paying too much tax is through Life Insurance. The proceeds from Life Insurance are tax free to the beneficiary and can be used to assist the family in paying the taxes due on the estate when they probate your will.
Do you have a business you would like to pass on to family members or sell when you are no longer there?
There are various issues regarding winding up of a business. Do I pass the business along to my spouse, children or partners? How do I avoid burdening my family with high taxes? Business succession can be very complex and often requires professional help. Buy- Sell Agreements are often used to pass the business over to remaining partners and can be funded through Life Insurance. Your Financial Advisor, together with other professionals, can help you with these decisions.
Do you have a family cottage you would like to pass on to your children?
Often the family cottage is a costly item to keep when it comes time to pass it along to your children. The cottage is valued at Fair Market Value at the time of the last spouse's death and usually results in a Capital Gain, which is taxable. There are several ways to reduce the tax impact. One way is to sell the cottage to pay the taxes. Another way is to place the cottage in the children's name early on. This will reduce the amount of Capital Gains for their generation, but will have the same tax issue when it comes time to leave the cottage to their children. Placing the cottage in the children's name however, could result in other complications, such as, if your children have marital problems etc. The use of a Family Trust will alleviate some of these problems. Life Insurance becomes an easier way to handle this often-delicate situation, by providing the funds to pay the taxes and keep the cottage in the family.
What would happen to your Finances/Estate if you had a Critical Illness?
If this happened later in your working life, the drain on your cash reserves and Retirement Saving Investments would certainly affect your available Retirement Income and Estate Value.
You can protect your savings with Living Benefits such as Critical Illness Insurance, Disability Insurance and Long-term Care Coverage, which can be arranged, through your Financial Advisor.