Life insurance can pay the final tax bill on your registered assets, allowing you to pass the full value of your RSPs and RRIFs to your heirs.
If you're like many Canadians, your RSP has become the major source of asset accumulation during your lifetime. Through the magic of compound interest and tax deferral, your RRSP may become the largest asset you hold.
However, at death, your RRSP or RRIF could be your most significant tax liability; without proper planning, almost half the value of the registered assets in the estate will go to taxes.
Upon death, the spousal rollover option enables registered assets to pass tax-free to a surviving spouse. However, on the death of the surviving spouse, the Canada Revenue Agency (CRA) will consider the entire value of the RRSP or RRIF as taxable income. These funds are added to other sources of income earned during the year and will almost certainly push even those who had modest incomes while living, into the maximum tax bracket for their final tax year.
Every Situation is Different
Every individual situation is different and professional advice should be sought before any final decisions are made, but there are some general ideas and techniques that are extremely effective. Rates of return will vary by situation, and are dependent on such factors as age, spouse's age, health and the amount of insurance needed.
Please contact us today for your no-obligation consultation. We look forward to helping you and your family.
To learn more simply fill out this form or call us at 416-364-2929 or 1-866-566-2001.
"On behalf of myself, my brother, and our families - thank you for your assistance, sage advice, and care in helping us arrange life insurance, and assisting us with tax/ estate planning. As fellow business owners and fathers, your understanding of the various complexities involved were invaluable. You always left us with the feeling that while you are happy to make a sale, you actually also care. If you ever need us to speak with potential clients about the service and professionalism you provide, we would be happy and honored to do so. Wishing you much continued success in your core business and new product lines."
Sincerely,
Ben and Dan Berkovits
Co-CEO's
The Home Improvement People Inc.
www.homeimprovementpeople.com
"I was referred to Mark by a lawyer colleague who is familiar with insurance company litigation. She deals with insurance matters and advised us that if we were considering critical illness insurance, Mark is the best in the business. My wife and I are both lawyers, so we needed to understand everything and Mark took the time to explain things in great detail. He didn't pressure us and helped us make the right decision. We also really appreciated Mark's accommodation by arranging to meet us late at night. We both recommend Mark highly."
Alan G.
Lawyer
"Mark, I just want to let you know that you are the most comprehensive insurance guy I've ever met. I really appreciate the time you have spent with me and my wife going through all of our planning. Dealing with someone as knowledgeable as you is a rarity. Your professionalism and the way that you get things done...I'm truly impressed and I just want you to know that."
Jordan Jacobson
Sales Manager
The Benvenuto Toronto