Would you like to leave more to your kids?

Annex Post - - ASK THE EXPERT -

We spend our work­ing years to sup­port our fam­i­lies and save for re­tire­ment. Some of us are for­tu­nate enough to save more than we ever need, oth­ers just save enough to hope­fully make it through the re­tire­ment years. Ei­ther way, if we could find a way to leave our kids or grand­kids more, or some­thing at all, we would all be ex­cited about that pos­si­bil­ity. If you want to leave a le­gacy to your chil­dren, or if you al­ready have sub­stan­tial wealth and want to leave a big­ger le­gacy, you might want to con­sider Joint Last to Die Life In­sur­ance.

Your sit­u­a­tion

You have sav­ings or ex­tra in­come that you do not need for life­style pur­poses. You and your spouse in­vest the cash in GICs or other tax­able in­vest­ments and ear­mark these in­vest­ments for your heirs. You want a fi­nan­cial plan­ning strat­egy that will in­crease the funds avail­able for your chil­dren when you and your spouse die with­out risk.

An op­tion to con­sider - Joint Last to Die Life In­sur­ance

This fi­nan­cial plan­ning strat­egy uses your sur­plus cash to set up a Joint Last to Die In­sur­ance pol­icy. By re­plac­ing the tax­able in­vest­ments with a life in­sur­ance pol­icy, you will in­crease the funds avail­able to your heirs when you die and re­duce the amount of tax you will pay to­day and in the fu­ture.

How does Joint Last to Die Life In­sur­ance work?

You ac­quire a life in­sur­ance pol­icy on yours and your spouse’s life and you name your heirs as the ben­e­fi­ciary of the pol­icy. This cash value ac­cu­mu­lates on a tax-de­ferred ba­sis within the pol­icy, in­creas­ing the death ben­e­fit payable. When you both die, your ben­e­fi­ciary re­ceives the pro­ceeds of the pol­icy; tax free. By tak­ing ad­van­tage of this strat­egy, you and your spouse have moved per­sonal in­vest­ment dol­lars from a tax-ex­posed en­vi­ron­ment to a tax-shel­tered en­vi­ron­ment, in­creas­ing the amount you give to your heirs when you die. The bot­tom line is, you have sub­stan­tially in­creased the in­her­i­tance your chil­dren would re­ceive by us­ing this unique type of in­sur­ance as an al­ter­na­tive in­vest­ment.

Jaymie Bon­gard

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