Senior Investment Advisor
BMO Nesbitt Burns
885 West Georgia Street
Leaving a Legacy
Plan to maximize what you leave to your heirs
Many people don't realize the hidden tax liability in their estate. Here are some of the ways taxes and fees can erode your estate's value:
The role of life insurance
Charitable Insured Annuity Strategy
- Capital gains tax on the appreciation of your assets.
- Income tax on the remaining value of your RRSP or RRIF.
- Probate fees based on the value of your estate.
Life insurance can be an important component of your estate plan. When a beneficiary is named, the proceeds from the policy bypass probate fees providing more for your beneficiaries. The death benefit can provide the funds to cover any tax liability. Or it can be used to create a larger estate for your heirs.
Give to charity and provide for your heirs
Donating Appreciated Securities
Would you like to make a gift to charity through your estate but are concerned about providing for your heirs? Life insurance makes it possible to do both. You can leave your estate to your heirs and let the charity receive the tax-free death benefit from your life insurance.
Choice of tax benefits
Donating life insurance proceeds to a charity can impact your tax benefits. You can:
- Enjoy tax credits today. Designate the charity as the owner and beneficiary of the policy. You will receive a tax receipt from the charity for the premiums you pay and the charity will receive the proceeds from the policy.
- Provide tax credits for your estate. You remain the owner of the policy but the charity is the beneficiary. As owner you still control the policy and can change the beneficiary if you wish. When you die, the charity receives the death benefit and your estate gets a tax receipt for the entire amount.