This involves the smooth and cost effective transfer of an estate to those named by, usually, a deceased person in their will. The will is a critical instrument as it follows the explicit wishes of the deceased and keeps the government away from administration of the estate.

All estates are taxed to a certain degree. The tax liability on an estate could be as high as 48% plus executor fees, legal fees, accounting costs and probate fees. The government does not care where these funds come from, they simply want them.

We can pay these taxes and fees dollar for dollar or for 10-15 cents on the dollar. In Canada the insurance and tax act allows that the beneficiary of an insurance policy receives the funds TAX FREE. This means that you can pay the required taxes with insurance dollars rather than estate dollars and transfer more of your estate to your beneficiaries. For example, assuming your estate has a taxable value of $1,000,000.00. The taxes payable would be approximately $480,000, leaving $520,000 to your beneficiaries. If you had purchased an insurance policy for $500,000 the cost might be $50,000 over your lifetime. Using this tax free money to pay the taxes on your estate you would be able to transfer $950,000 net to your beneficiaries.

The government just wants the taxes. You can pay them dollar for dollar when you pass away and your estate is settled or you can fund the future tax bill with 10 cent dollars now. The choice is yours.

Let me show you how planning now can save your hard earned money!