Take advantage of life insurance trusts for estate planning

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Take advantage of life insurance trusts for estate planning"

Transcription

1 March 2007 In this issue: Take advantage of life insurance trusts for estate planning Avoid probate fees, pay less income tax p. 2: Selling critical iillness insurance it s all about need Insert: Pensioners to save $1 billion What if your clients ask whom they should name as the beneficiary of a life insurance policy? Their children, to avoid probate fees and provide creditor protection? Or their estate, so the insurance proceeds receive the beneficial tax treatment of a testamentary trust? The answer is, the client can accomplish both goals with a life insurance trust. (In Quebec, a civil law trust differs significantly from a common law trust. This article does not cover trusts under Quebec law.) Life insurance trusts offer fer flexibility lexibility, tax advantages, creditor protection and control. Trusts are increasingly popular for estate planning because of their flexibility, tax advantages, creditor protection and the control they allow after death. They involve a threeparty agreement, in which the person who creates the trust (the settlor) directs property to trustees, who as trustee hold and manage the property for the benefit of the beneficiaries. Trusts must have three certainties: certainty of intent (intention to create a trust), certainty of subject matter (property) and certainty of objects (beneficiaries). There are two types of trusts: inter vivos trusts, created during the life of the settlor, and testamentary trusts, created after the death of the settlor. For tax planning, testamentary trusts are generally preferable, because income retained by the trust is taxed at graduated rates. To meet the definition of a testamentary trust, in subsection 108(1) of the Income Tax Act (Canada) (ITA), the trust can only receive property from an individual, on or after and as a consequence of that person s death. Establishing a life insurance trust A properly structured life insurance trust ensures the trust qualifies as a testamentary trust and the life insurance proceeds do not flow through the estate. Canada Revenue Agency confirmed this point in technical interpretation # , dated Dec. 17, There are several ways to set up a life insurance trust. 1. Life insurance declaration in the will 2. Life insurance trust structured outside the will 3. Hybrid arrangement see back page for details... We publish Strategies four times per year to provide value-added information about Canada Life TM insurance and investment solutions you need for your business and clients. Help us help you! If you re moving, changing your address, or wish to receive Strategies electronically in addition to, or instead of, a printed copy, please let us know so we can update our distribution list. By By fax: By mail: Canada Life, 330 University Ave., S9, Toronto ON M5G 1R8 Attn: Vanessa Funtera or Vivienne Leong (national accounts)

2 The NEAT team Selling critical iillness insurance It s all about need Brenda McEachern, B.Com, LL.B, TEP. British Columbia regional marketing centre Ph# (800) Neil Horne CA, CFP, TEP. Prairie regional marketing centre Ph# (888) Critical illness (CI) insurance sales become easier when two key points are understood by financial advisors and their clients. For clients, it s understanding the need for CI relative to improving odds of surviving serious illnesses such as cancer, heart attack and stroke. For financial advisors, it means knowing clients have personal and emotional priorities that will motivate them to buy. CI a product for the future Because this is a relatively new product, it s still rare for clients to approach financial advisors with a good understanding of why CI is essential. Rather than being a challenge to overcome, the newness of CI can help open doors for you. It can also help open clients minds to the need. CI can be positioned as a product that has emerged as medical diagnostics, treatments and chances of surviving serious illnesses continue to improve. Here are a couple of examples for starting the conversation in a compelling way: We stand a much better chance than ever of surviving a serious illness. This is very good news. Unfortunately, now we stand a better chance than ever of having to live with the effects of that illness (physically and financially). Critical illness insurance was first developed by a doctor, not an insurance company. He got the idea when he watched a cancer patient work until she died rather than having a choice to be at home with her family. He realized how important it was for patients diagnosed with a critical illness to have financial assistance at a time when they need it most. Every client has different motivators instead of talking about every potential expense that can be associated with a critical illness, find out your clients priorities. Frank Abate, CA, CFP Toronto City regional marketing centre Ph# (877) What motivates your client to buy? Motivation varies with each client. Rather than trying to educate clients about every last expense associated with treatment of a hypothetical critical illness, find out what your clients personal and emotional priorities are and you will uncover their motivation to buy. The Critical Illness Personal Needs Analysis Tool available, on RepNet or from Canada Life your regional marketing centre, can help uncover clients key concerns. Critical Illness Personal Needs Analysis Tool 2

3 The NEAT team Tom Pilkington, CA, CLU, CH.F.C., CFP, TEP Toronto City regional marketing centre Ph# (877) The CI Needs Analysis Tool lets you crunch some numbers with clients to help determine their financial needs in the event of a critical illness and release their buying trigger. Suzanne Desy, LL.B, D.D.N., Pl. fin. Eastern regional marketing centre Ph# (800) The tool has three sections: 1. Capital requirements potential lump-sum payments such as outstanding mortgages, credit card debts or education funds 2. Expense requirements expenses directly associated with the illness such as travel expenses or home renovations 3. Income supplement calculates how much of a lump sum clients would need to replace their or their spouse s income for a predetermined period of time. By working through the tool with leading questions, you can encourage clients to come up with their own answers about how much money they might need to manage each expense. How can you convert a needs analysis into a sale? One approach is to ask, Of all these expenses, what are you most worried about? In answering, clients will reveal their priorities as well as their personal and emotional motivators to buy. If a client is most worried about paying the mortgage (whether it s a year of mortgage payments or paying the mortgage off completely) and keeping the house, then the help that CI can provide for this is the value of it to that client. Or, perhaps a client s primary concern is replacing or supplementing income so a spouse can stay home to act as caregiver. Work with your clients to discover their personal and emotional motivators armed with this information your CI sales can increase while helping your clients with a valuable part of their total financial security plans. Christopher Britton, CA Eastern regional marketing centre Ph# (888) Convert a needs analysis into a sale by asking what expenses are the biggest concern in answering, clients will reveal their priorities plus their personal and emotional buying triggers. 3

4 continued from page 1 Life insurance trust strategies Life insurance declaration in the will The declaration provides that life insurance proceeds are paid to trustees in a separate life insurance trust. The wording ensures trustees hold property for the benefit of designated beneficiaries. It clearly identifies the life insurance policy, revokes previous beneficiary designations and indicates the life insurance trust is separate from other trusts established by the will. Life insurance trust structured outside the will The life insurance trust is set up before death, but the life insurance proceeds actually settle the trust. It s extremely important from a tax perspective that the trust arise as a result of death. This approach provides confidentiality. Hybrid arrangement The life insurance declaration is made outside the will, but the terms of the life insurance trust are set out in the will. These terms are incorporated by reference in the declaration. Life insurance trusts can meet the dual objectives of avoiding probate fees and preserving the graduated income tax advantages of a testamentary trust. A trust must file a return each taxation year (ITA section 150 [1] [c]). If your clients are considering a life insurance trust, it s important you recommend they consult with a legal advisor experienced in estate planning to establish the plan properly. By Bruce Chegus, LL.B., CFP, TEP, Advanced Sales, Life and Living Benefits, and Chris Britton, CA, National Estate and Tax Planning (NEAT) Consultant, Canada Life Eastern regional marketing centre Strategies is for information purposes only and should not be construed as legal or tax advice. Every effort has been made to ensure its accuracy, but errors and omissions are possible. Individual circumstances may vary and specific legal and tax advice is recommended. The information presented is based on current tax legislation. Future tax changes and market conditions may affect this information. Canada Life contacts RepLine RepNet Tech Support Toll-free: RepNet Regional marketing centres Eastern Ontario Prairie British Columbia Helping people achieve more TM is produced quarterly by the Marketing and Communications teams of Canada Life. Please direct all comments and inquiries to: URL: Mail: 330 University Avenue, S9 Toronto, ON M5G 1R8 Attn: Dean Askin 4 Canada Life and design and Helping people achieve more are trademarks of The Canada Life Assurance Company

5 Pensioners to save $1 billion Many of you will remember Hallowe en 2006 as the day Federal Finance Minister Jim Flaherty announced the tax fairness plan. The taxation of income trusts outlined in the plan, caused an immediate decline in their prices on Nov. 1. But seniors benefit from the plan because it increases the age amount nonrefundable tax credit for federal taxes and it offers opportunities for pension income splitting between spouses. Here are answers to some common and expected questions clients may ask you: What are the new rules? The age amount tax credit is increased to $5,066, already reflected on the 2006 tax return forms. The pension income splitting rules are not clear at this point as there has been nothing published further yet. The most conservative tax commentators are banking on nothing until the tax fairness plan passes into law, while a more liberal group expect this to pass regardless of the timing or result of the next election. Assuming the announcement becomes law, we expect it to apply to pension income starting Jan. 1, Does my income qualify to be split? It will qualify for pension income splitting if it also qualifies for the pension income tax credit. Over age 65, pension income includes: Income from a defined benefit or defined contribution pension plan Income from a registered retirement savings plan (RRSP) as long as it s an annuity Payments from a registered retirement income fund (RRIF), which includes locked-in plans such as life income fund (LIF) For income recipients under age 65, the list shortens to only income from a pension plan. How will the rules affect fect my tax retur eturn? n? The person transferring income will report less, and the receiving spouse will report the transferred amount on his or her return. The Canada Revenue Agency (CRA) could facilitate this in several ways a separate income line, a worksheet, a schedule are some possibilities. Unfortunately we won t know exactly how until the 2007 tax packages are available early in While the details are not final, it s widely anticipated the amount transferred would qualify for the pension income credit of the receiving spouse. In households where the spouse receiving an income-split allocation didn t have pension income before, it increases the amount of pension income eligible for the credit, reducing taxes further. How much tax could it save me? For Canadian pensioners wondering how much applies to them specifically, the result is similar across provinces around $3,000 per couple. In the accompanying charts, we re using the example of an Ontario couple over age 65 who earn a combined income of $70,000. One spouse earns $10,000 in income, which is not eligible for the pension income credit. The other spouse earns $60,000 with $50,000 of it qualifying as pension income because it s either pension or RRIF payments. We have assumed Ontario will allow pension income splitting for provincial taxes as well, however there s currently no draft legislation. continued... Pension income splitting Case study

6 Pension income splitting Case study These rates and values are for general illustration purposes only. Each person will have a different amount of taxes owing based on exact income, different tax credits, contributions, donations, etc. Before pension income splitting Spouse A Spouse B Total Income $60,000 $10,000 $70,000 Federal tax $10,745 $1,525 Non-refundable tax credits* ($2,341) ($2,121) Net provincial tax* $4,287 Total tax payable $12,691 $12,691 Net income after tax $47,302 $10,000 $57,309 With pension income splitting Spouse A Spouse B Total Income $35,000 $35,000 $70,000 Federal tax $5,338 $5,338 Non-refundable tax credits* ($2,317) ($2,317) Net provincial tax* $1,642 $1,642 Total tax payable $4,663 $4,663 $9,326 Net income after tax $30,337 $30,337 $60,674 *Includes basic personal tax credit, spousal amount, age amount, pension income amount, transfer of unused age amounts, Ontario Health Premium. The information in this article is current as of February 2007 and is for illustrative purposes only. It is not to be considered tax advice. Please consult a professional tax advisor for advice related to your situation. Planning implications Lower tax The government anticipates this move will save pensioners $1 billion in federal taxes. Clients might leave gross redemptions unchanged and enjoy higher after-tax payments, or adjust their payments, if possible, to draw less from their investments while leaving after-tax income unchanged. As a result, retirees will be able to enjoy one or more of these benefits: Higher after tax income Money lasting longer Need to work less to supplement income Higher balance to leave to heirs Old Age Security (OAS) clawback If a pensioner s income is above $62,144 (indexed higher for 2007), OAS clawbacks kick in. If pension income can be reduced to $62,144 or less by allocating some to a spouse, the household will keep more of the OAS payment. Spousal RRSPs There s debate about the future and purpose of spousal RRSPs, with income splitting allowed. Spousal RRSPs can still serve a purpose if your clients plan any of the following: Drawing income prior to age 65 Splitting more than 50 per cent of pension income (which could be done to equate income depending on how much non-pension income each spouse reports) Contributing to an RRSP past age 69 (if their spouse is younger) Contributing to a post-death RRSP that goes to the surviving spouse via a spousal RRSP. This results in one final RRSP deduction on the terminal tax return. Using RRSPs to buy a house or fund education under the Home Buyers Plan or Lifelong Learning Plan. Spousal RRSPs could double the amount clients are able to withdraw. March 2007 Helping people achieve more TM TM Canada Life and design and Helping people achieve more are trademarks of The Canada Life Assurance Company.

The Great Divide: Income splitting strategies can lower your family s taxes by Jamie Golombek

The Great Divide: Income splitting strategies can lower your family s taxes by Jamie Golombek March 2015 The Great Divide: Income splitting strategies can lower your family s taxes by Jamie Golombek While the new Family Tax Cut credit, which provides a form of income splitting, has been getting

More information

Preparing for Retirement. A Guide for Employees. Human Resources

Preparing for Retirement. A Guide for Employees. Human Resources Preparing for Retirement A Guide for Employees 010 Human Resources Contents Introduction... 3 Canada Pension Plan Retirement Benefits... 4 Old Age Security... 6 Employment Insurance Benefits at Retirement...

More information

PLANNING FOR A DISABLED BENEFICIARY

PLANNING FOR A DISABLED BENEFICIARY PLANNING FOR A DISABLED BENEFICIARY REFERENCE GUIDE This Reference Guide is intended to provide information and guidance for those whose estate planning objectives include providing for an individual who

More information

Common-law (including same-sex) partners taxation information

Common-law (including same-sex) partners taxation information Tax & Estate Common-law (including same-sex) partners taxation information Under the Income Tax Act (Canada), all common-law relationships, either opposite- or same-sex, are treated equally. For tax purposes,

More information

Solut!ons for financial planning

Solut!ons for financial planning Understanding your options this RRSP season 16 Solut!ons for financial planning Consider mutual funds and segregated fund contracts You ve likely heard it before: you should regularly contribute to a Registered

More information

Ten RRSP Hacks. 1. Forget the RRSP altogether. 2. It s never too early to start an RRSP. Jamie Golombek. January 2016

Ten RRSP Hacks. 1. Forget the RRSP altogether. 2. It s never too early to start an RRSP. Jamie Golombek. January 2016 January 2016 Ten RRSP Hacks Jamie Golombek Managing Director, Tax & Estate Planning, CIBC Wealth Advisory Services An RRSP allows you to set aside a portion of your income for retirement, deferring tax

More information

TAX, RETIREMENT & ESTATE PLANNING SERVICES. Clawback calculator user guide

TAX, RETIREMENT & ESTATE PLANNING SERVICES. Clawback calculator user guide TAX, RETIREMENT & ESTATE PLANNING SERVICES Clawback calculator user guide Table of contents Introduction... 3 Fully taxable and investment income Fully taxable income... 4 Investment income... 5 Deductions

More information

1.1 How can I plan for my retirement income?... 1. 1.2 Your retirement income needs... 1. 1.3 Converting your RSP... 1

1.1 How can I plan for my retirement income?... 1. 1.2 Your retirement income needs... 1. 1.3 Converting your RSP... 1 R e t i r e m e n t I n c o m e F u n d s I n f o r m a t i o n B o o k l e t. This booklet is intended to address questions commonly asked about Retirement Income Funds (RIFs). The booklet is not intended

More information

Federal Budget 2014 by Jamie Golombek

Federal Budget 2014 by Jamie Golombek February 11, 2014 Federal Budget 2014 by Jamie Golombek The February 11, 2014 federal budget included various tax measures that will affect individuals, registered plans, employers and trusts. Rather than

More information

Should You Be Trusted? Using Trusts in Estate Planning

Should You Be Trusted? Using Trusts in Estate Planning Should You Be Trusted? Using Trusts in Estate Planning CBA NS ELDER LAW CONFERENCE NOVEMBER 15, 2013 PRESENTED BY: RICHARD NIEDERMAYER. All rights reserved. Not to be copied or used in whole or in part

More information

Pension Income Splitting

Pension Income Splitting Pension Income Splitting And Other Recently Announced Changes for Retirees New tax rules were recently introduced by the federal government that will allow senior couples to split their pension incomes

More information

TRANSFERS FROM A registered pension plan to a. Sun Life. nnuity PAYOUT ANNUITY ADVISOR GUIDE. Life s brighter under the sun

TRANSFERS FROM A registered pension plan to a. Sun Life. nnuity PAYOUT ANNUITY ADVISOR GUIDE. Life s brighter under the sun PP TRANSFERS FROM A registered pension plan to a nnuity Sun Life PAYOUT ANNUITY ADVISOR GUIDE Life s brighter under the sun A guide to understanding transfers from a registered pension plan to a life annuity

More information

Investor Guide. RRIF Investing. Managing your money in retirement

Investor Guide. RRIF Investing. Managing your money in retirement Investor Guide RRIF Investing Managing your money in retirement 1 What s inside It s almost time to roll over your RRSP...3 RRIFs...4 Frequently asked questions...5 Manage your RRIF...8 Your advisor...10

More information

Your guide to the Tax-Free Savings Account

Your guide to the Tax-Free Savings Account INVESTMENTS Tax-Free Savings Account Your guide to the Tax-Free Savings Account An important part of any financial plan is savings. Short-term goals such as a vacation or long-term goals like retirement

More information

Are Insurance Premiums Deductible?

Are Insurance Premiums Deductible? Are Insurance Premiums Deductible? August 2014 Can I deduct the premiums? That s a question you probably hear when you re presenting an insurance concept. Unfortunately, the answer is generally no insurance

More information

getting you ready / retirement planning For members within five years of retiring

getting you ready / retirement planning For members within five years of retiring getting you ready / retirement planning For members within five years of retiring Contents 2 / Introduction 3 / HOOPP: More for your money 4 / The pension you ll receive 6 / When you can retire 12 / Survivor

More information

Your Guide to Retirement Income Planning

Your Guide to Retirement Income Planning Your Guide to Retirement Income Planning Your Guide to Retirement Income Planning 3 Your retirement income plan How to create secure income in retirement Your retirement will be as unique as you are. Travel,

More information

Estate Maximization THE USE OF INSURANCE

Estate Maximization THE USE OF INSURANCE Estate Maximization Estate maximization is just what the name implies, the process of maximizing the estate that will be passed on to your heirs. You should first determine if maximizing your estate is

More information

How Can You Reduce Your Taxes?

How Can You Reduce Your Taxes? RON GRAHAM AND ASSOCIATES LTD. 10585 111 Street NW, Edmonton, Alberta, T5M 0L7 Telephone (780) 429-6775 Facsimile (780) 424-0004 Email rgraham@rgafinancial.com How Can You Reduce Your Taxes? Tax Brackets.

More information

If I were no longer around, who would pay my mortgage?

If I were no longer around, who would pay my mortgage? If I were no longer around, who would pay my mortgage? Let us help you create a mortgage protection plan to protect you and your most valuable asset. Mortgage life insurance protection Your house is your

More information

Pension Options. In Alberta, the money that is held for you in a pension plan must be used to provide you with a lifetime income when you retire.

Pension Options. In Alberta, the money that is held for you in a pension plan must be used to provide you with a lifetime income when you retire. RON GRAHAM AND ASSOCIATES 100, 10585-111 Street,Edmonton, Alberta T5H 3E8 Telephone (780) 429-6775 Facsimile (780) 424-0004 rgraham@rgafinancial.com Pension Options In Alberta, the money that is held for

More information

For advisor use only Advisor Guide

For advisor use only Advisor Guide For advisor use only Advisor Guide RBC Payout Annuities 2 RBC Payout Annuities: Advisor guide What you and your clients need to know about payout annuities In an uncertain financial world where guarantees

More information

RETIREMENT CHECKLIST MAKING THE MOST OF YOUR RETIREMENT

RETIREMENT CHECKLIST MAKING THE MOST OF YOUR RETIREMENT RETIREMENT CHECKLIST MAKING THE MOST OF YOUR RETIREMENT This document has been prepared for use by RBC Dominion Securities Inc.* and RBC DS Financial Services Inc., (collectively, the Companies ). The

More information

Transferring wealth Effective strategies for the typical Canadian

Transferring wealth Effective strategies for the typical Canadian Transferring wealth Effective strategies for the typical Canadian KEEPING IT IN THE FAMILY You ve worked a lifetime to accumulate assets. In fact, the average Canadian family has amassed total personal

More information

Local 804 Pension Plan

Local 804 Pension Plan Local 804 Pension Plan A guide to your pension plan benefits Union Benefit Plans Services Contact Contact us If you have any questions about the plan, please contact the plan administrator: Union Benefit

More information

Sample retirement plan prepared with. The Canadian Retirement Planner s Software. For information visit http://www.gobeil.ca/

Sample retirement plan prepared with. The Canadian Retirement Planner s Software. For information visit http://www.gobeil.ca/ RETIREMENT PLAN KAREN AND BILL SWIRE PROVINCE OF ONTARIO AS AT JANUARY 1, 2012 PREPARED BY DAVID GOBEIL, CA, CFP NOVEMBER 4, 2011 VERSION DRAFT Sample retirement plan prepared with The Canadian Retirement

More information

Registered Retirement Income Funds

Registered Retirement Income Funds Registered Retirement Income Funds The Income Tax Act states that a Registered Retirement Savings Plan (RRSP) matures by December 31 of the year in which the planholder (annuitant) reaches age 69. At the

More information

Lifetime income benefit

Lifetime income benefit Canada life segregated Funds Lifetime income benefit Guarantee your income for life Grow income don t allow it to decrease Financial strength and stability Founded in 1847, Canada Life TM was Canada s

More information

Sample retirement plan prepared with. The Canadian Retirement Planner s Software. For information visit http://www.gobeil.ca/

Sample retirement plan prepared with. The Canadian Retirement Planner s Software. For information visit http://www.gobeil.ca/ RETIREMENT PLAN PROVINCE OF ONTARIO AS AT JANUARY 1, 2012 PREPARED BY DAVID GOBEIL, CA, CFP NOVEMBER 14, 2011 VERSION DRAFT Sample retirement plan prepared with The Canadian Retirement Planner s Software

More information

Preparing for the retirement you want

Preparing for the retirement you want Preparing for the retirement you want You deserve an enjoyable retirement Retirement is one of life s most significant events. It marks the transition to a new and very wonderful stage of life. You will

More information

F O R Y O U R F A M I L Y

F O R Y O U R F A M I L Y FOR YOUR FAMILY Your partner or loved ones will face many decisions upon your death. We hope this brochure makes it easier for them to make those decisions then and easier for you to talk with them about

More information

Lifetime income benefit

Lifetime income benefit Canada life segregated Funds Lifetime income benefit Guarantee your income for life Grow income don t allow it to decrease Financial strength and stability Canada Life, founded in 1847, was Canada s first

More information

Taxation of Personally Owned Non-Registered Prescribed Annuities

Taxation of Personally Owned Non-Registered Prescribed Annuities Taxation of Personally Owned Non-Registered Prescribed Annuities This document explains the unique features of non-registered prescribed annuities. For a detailed discussion of non-registered non-prescribed

More information

Life insurance. Shedding light on. a practical guide to helping you achieve a lifetime of financial security

Life insurance. Shedding light on. a practical guide to helping you achieve a lifetime of financial security Shedding light on Life insurance a practical guide to helping you achieve a lifetime of financial security Learn more about: Safeguarding your loved ones Protecting your future Ensuring your dreams live

More information

The Canadian Retirement Income Guide 2014 Edition. Maximizing your retirement income while minimizing your taxes

The Canadian Retirement Income Guide 2014 Edition. Maximizing your retirement income while minimizing your taxes The Canadian Retirement Income Guide 2014 Edition Maximizing your retirement income while minimizing your taxes Introduction When you retire, not only does your daily routine change, but your pay cheque

More information

The Truth About INSURANCE

The Truth About INSURANCE INSURANCE The Truth About Annuities are one of the least known, least understood and most underutilized financial instruments. Yet as Paul Goldstein explains, in certain circumstances annuities should

More information

financial planning & advice

financial planning & advice financial planning & advice Tips for successful investing. Start early and invest regularly Do your homework take the time to become an informed investor Develop an investment strategy you are comfortable

More information

MEMBER RETIREMENT INCOME OPTIONS Achieve Your Retirement Dreams

MEMBER RETIREMENT INCOME OPTIONS Achieve Your Retirement Dreams MEMBER RETIREMENT INCOME OPTIONS Achieve Your Retirement Dreams Achieve Your Retirement Dreams With a Registered Retirement Income Fund (RRIF) Wise Ways to Make the Most of Your Money Now that you re getting

More information

Easy Guide to Retirement Income Options

Easy Guide to Retirement Income Options Easy Guide to Retirement Income Options Contents PAGE 1: Your retirement income choices... 2 1. Convert your RSP into an annuity... 2 a. Life Annuity... 2 b. Term Certain Annuity to Age 90... 2 2. Convert

More information

Retirement. Income. your way

Retirement. Income. your way Retirement. Income. your way YOUR GUIDE TO SUNFLEX RETIREMENT INCOME Life s brighter under the sun Table of contents Introduction... 3 The five retirement risks... 4 Money for Life... 5 Product Overview

More information

Unlocking Pension Money

Unlocking Pension Money An information bulletin regarding the unlocking of pensions pursuant to The Pension Benefits Act, 1992. fcaa.gov.sk.ca Page 2 [This page was left blank intentionally] Introduction Section 29 of The Pension

More information

Insurance Trusts. Richard Niedermayer. 2012 Atlantic Provinces Tax Conference

Insurance Trusts. Richard Niedermayer. 2012 Atlantic Provinces Tax Conference Insurance Trusts Richard Niedermayer 2 Insurance Trusts A. The Strategy A form of testamentary trust funded with the proceeds of an insurance policy (or policies) payable on death of the testator For personal

More information

The Road to Retirement: Beginning your journey

The Road to Retirement: Beginning your journey The Road to Retirement: Beginning your journey CSS Pension Plan Welcome! This Road to Retirement series has been designed to help you understand your pension plan, and save for retirement. [When you see

More information

The Individual Pension Plan. An opportunity to have your cake and eat it too!

The Individual Pension Plan. An opportunity to have your cake and eat it too! Special Report An introduction to: The Individual Pension Plan An opportunity to have your cake and eat it too! Gerard Hass, CA, CFP, CFA Portfolio Manager Raymond James Ltd. 1 What is an Individual Pension

More information

ADVISOR USE ONLY PAYOUT ANNUITY. Overcoming objections. Life s brighter under the sun

ADVISOR USE ONLY PAYOUT ANNUITY. Overcoming objections. Life s brighter under the sun ADVISOR USE ONLY PAYOUT ANNUITY Overcoming objections Life s brighter under the sun Overview Payout annuities are a powerful retirement tool and have been an important product for many years. They re sometimes

More information

Millennium universal life insurance

Millennium universal life insurance Millennium universal life insurance Permanent protection that can change with you Millennium universal life insurance Over the years, you ve worked hard to build the lifestyle you enjoy today. You ve made

More information

7 Facts You Need to Know About Reverse Mortgages...

7 Facts You Need to Know About Reverse Mortgages... SPECIAL REPORT 7 Facts You Need to Know About Reverse Mortgages... By Quinn Berry 7 Facts You Need to Know About Reverse Mortgages... to help you enjoy a comfortable, worry-free retirement! Chances are

More information

Charitable Planned Giving

Charitable Planned Giving ` Insuring the Future In this Newsletter: Charitable Planned Giving Legislative Changes John Jordan, CFP CERTIFIED FINANCIAL PLANNER Phone: (519) 272-3112 Toll Free: (866) 272-3112 Fax: (519) 662-6414

More information

Sun Life Assurance Company of Canada

Sun Life Assurance Company of Canada Sun Life Assurance Company of Canada Sun Guaranteed Investment Fund Solutions Income Series supplement Information folder and individual variable annuity contract issued by Sun Life Assurance Company of

More information

Registered Retirement Income Funds

Registered Retirement Income Funds Registered Retirement Income Funds Registered Retirement Income Funds Most Canadians are familiar with registered retirement savings plans (RSPs). Many spend decades accumulating wealth in these tax deferred

More information

TAX, RETIREMENT & ESTATE PLANNING SERVICES. An advisor s guide to insurance trusts

TAX, RETIREMENT & ESTATE PLANNING SERVICES. An advisor s guide to insurance trusts TAX, RETIREMENT & ESTATE PLANNING SERVICES An advisor s guide to insurance trusts Insurance Trust AN EFFECTIVE TOOL IN PLANNING YOUR CLIENT S ESTATE An insurance trust can be an effective tool to help

More information

Reuter Benefits Group Plan Member Newsletter September 2009

Reuter Benefits Group Plan Member Newsletter September 2009 Reuter Benefits Group Plan Member Newsletter September 2009 Accessing Your Retirement Savings As you approach retirement, you will need to turn your Pension and RRSP, as well as any nonregistered savings,

More information

LEAVING YOUR EMPLOYER SHOULD YOU COMMUTE YOUR PENSION PLAN?

LEAVING YOUR EMPLOYER SHOULD YOU COMMUTE YOUR PENSION PLAN? LEAVING YOUR EMPLOYER SHOULD YOU COMMUTE YOUR PENSION PLAN? Mackenzie Tax & Estate Planning In past years when an individual changed employers, it was pretty much an accepted practice to leave their defined

More information

BEING FINANCIALLY PREPARED FOR RETIREMENT The Scary Facts! $1.00 item in 1972, costs $3.78 today At the average rate of inflation, the price you pay for an item today will be double in 20 years almost

More information

TAX, RETIREMENT & ESTATE PLANNING SERVICES. Registered Retirement Savings Plan (RRSP) THE FACTS

TAX, RETIREMENT & ESTATE PLANNING SERVICES. Registered Retirement Savings Plan (RRSP) THE FACTS TAX, RETIREMENT & ESTATE PLANNING SERVICES Registered Retirement Savings Plan (RRSP) THE FACTS Table of contents What is an RRSP?... 3 Why should I contribute to an RRSP?... 4 When can I contribute?...

More information

Early Retirement Strategies

Early Retirement Strategies If you or a member of your family is facing a permanent lay-off, voluntary early retirement or forced early retirement, there are many important decisions to be made decisions that can have a significant

More information

ADDENDUM TO THE RETIREMENT SAVINGS PLAN DECLARATION OF TRUST ESTABLISHING A LOCKED-IN RETIREMENT ACCOUNT. Saskatchewan (LIRA)

ADDENDUM TO THE RETIREMENT SAVINGS PLAN DECLARATION OF TRUST ESTABLISHING A LOCKED-IN RETIREMENT ACCOUNT. Saskatchewan (LIRA) ADDENDUM TO THE RETIREMENT SAVINGS PLAN DECLARATION OF TRUST ESTABLISHING A LOCKED-IN RETIREMENT ACCOUNT Saskatchewan (LIRA) 1. What the Words Mean: Please remember that in this Addendum, I, me and my

More information

Plan at a glance: University of Saskatchewan Group Retirement Fund Prescribed Retirement Income Fund PRIF Registered Retirement Income Fund RRIF

Plan at a glance: University of Saskatchewan Group Retirement Fund Prescribed Retirement Income Fund PRIF Registered Retirement Income Fund RRIF Plan at a glance: Group Retirement Prescribed Retirement Income PRIF Registered Retirement Income RRIF Your plan at a glance We know how hard you have saved for your future. Now it s time for you to make

More information

Tax-Free Savings Account (TFSA) now available!

Tax-Free Savings Account (TFSA) now available! Tax-Free Savings Account (TFSA) now available! Customer-owners have a new way to save money with the Tax-Free Savings Account (TFSA), now available at Metro Credit Union. You can save or invest money without

More information

Lifetime income benefit

Lifetime income benefit London Life segregated policies Lifetime income benefit Guarantee your income for life GUARANTEES PROTECTION STRENGTH Financial strength and stability London Life, together with Great-West Life and Canada

More information

Taxation of Retirement Income

Taxation of Retirement Income Taxation of Retirement Income TAXATION OF RETIREMENT INCOME As our population ages, the need to fund a comfortable retirement becomes a priority for more and more Canadians. Many Canadians planning for

More information

Estate planning Creating and Preserving an Estate

Estate planning Creating and Preserving an Estate Estate planning Creating and Preserving an Estate The estate of an individual can be described as all of their assets they own less all of their liabilities. Anyone with assets needs an estate plan. Estate

More information

Protecting your family with insurance: How RBC Royal Bank can help

Protecting your family with insurance: How RBC Royal Bank can help Insurance Protecting your family with insurance: How RBC Royal Bank can help At RBC Royal Bank, we know that you ve worked hard to get here and build a new life. Insurance helps protect what you have from

More information

(CLICK ON JURISDICTION FOR ADDENDUM) FEDERAL LIRA ALBERTA LIRA BRITISH COLUMBIA LRRSP MANITOBA LIRA NEWFOUNDLAND AND LABRADOR LIRA NOVA SCOTIA LIRA

(CLICK ON JURISDICTION FOR ADDENDUM) FEDERAL LIRA ALBERTA LIRA BRITISH COLUMBIA LRRSP MANITOBA LIRA NEWFOUNDLAND AND LABRADOR LIRA NOVA SCOTIA LIRA Addendum To CANADIAN SHAREOWNER INVESTMENTS INC. Retirement Savings Plan Declaration of Trust for Locked-In Pension Transfers to a Locked-In Registered Retirement Savings Plan or a Locked-In Registered

More information

> A Lifetime of Financial Security and Peace of Mind

> A Lifetime of Financial Security and Peace of Mind > A Lifetime of Financial Security and Peace of Mind Insurance solutions to meet your personal and business needs ASSANTE ESTATE AND INSURANCE SERVICES INC. Introducing Assante Estate and Insurance Services

More information

Investment funds information folder

Investment funds information folder Investment funds information folder Great-West Life investment plans Investment funds information folder October 2015 This document is not an insurance contract. This information folder is not an insurance

More information

Your guide to the Tax-Free Savings Account

Your guide to the Tax-Free Savings Account INVESTMENTS Tax-Free Savings Account Your guide to the Tax-Free Savings Account An important part of any financial plan is savings. Short-term goals such as a vacation or long-term goals like retirement

More information

Common disaster confusion

Common disaster confusion Common disaster confusion August 2014 When people die at the same time or under circumstances where you can t tell who, it s called a common disaster or simultaneous death. Yet while it may not be possible

More information

4Needs your WHAT S AFTER? ELIMINATE DEBT THE FEWER DEBTS, THE BETTER! Wills and Trusts; Reviewing These Are a Must

4Needs your WHAT S AFTER? ELIMINATE DEBT THE FEWER DEBTS, THE BETTER! Wills and Trusts; Reviewing These Are a Must YOUR SOURCE FOR RETIREMENT PLANNING AND POSSIBILITIES e > N xt WHAT S AFTER? But first, some things to think about before 4Needs your retirement income should meet ELIMINATE DEBT THE FEWER DEBTS, THE BETTER!

More information

Application for a. Single Premium Immediate Annuity

Application for a. Single Premium Immediate Annuity Application for a Single Premium Immediate Annuity BMO Life Assurance Company 60 Yonge Street, Toronto, Ontario, Canada M5E 1H5 Tel 416-596-3900 Fax 416-596-4143 Toll Free 1-877-742-5244 348E (2010/11/18)

More information

Total Financial Solutions. Practical Perspectives on Tax Planning

Total Financial Solutions. Practical Perspectives on Tax Planning TM Trademark used under authorization and control of The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF. All insurance products are sold through ScotiaMcLeod Financial

More information

JUNE 2016. Great-West Life investment plans Information folder. Program MANAGED-MONEY. This document is not an insurance contract.

JUNE 2016. Great-West Life investment plans Information folder. Program MANAGED-MONEY. This document is not an insurance contract. JUNE 2016 Great-West Life investment plans Information folder Program MANAGED-MONEY This document is not an insurance contract. This information folder is not an insurance contract. The information in

More information

Introducing. Tax-Free Savings Accounts

Introducing. Tax-Free Savings Accounts Introducing Tax-Free Savings Accounts Tax-Free Savings Accounts A new way to save Tax-free savings accounts were introduced by the federal government in the 2008 budget as an incentive for Canadians to

More information

Payout Annuity. product guide

Payout Annuity. product guide Table of contents What is a Single Premium Annuity?............................................................................. 2 Who will benefit from a Payout Annuity?.......................................................................

More information

Blinded by the Refund : Why TFSAs may beat RRSPs as better retirement savings vehicle for some Canadians by Jamie Golombek

Blinded by the Refund : Why TFSAs may beat RRSPs as better retirement savings vehicle for some Canadians by Jamie Golombek January 2011 Blinded by the Refund : Why TFSAs may beat RRSPs as better retirement savings vehicle for some Canadians by Jamie Golombek With the introduction of Tax Free Savings Accounts (TFSAs) in 2009,

More information

Transamerica Layered Insurance Strategy. It doesn t matter where your story begins

Transamerica Layered Insurance Strategy. It doesn t matter where your story begins Transamerica Layered Insurance Strategy It doesn t matter where your story begins it only matters where you re going. Imagine your life if things never changed. If everything stayed exactly as it is today.

More information

Taxation of Non-Registered Enriched (or Impaired) Annuities

Taxation of Non-Registered Enriched (or Impaired) Annuities Taxation of Non-Registered Enriched (or Impaired) Annuities In addition to having a bearing on longevity, an individual s medical history can result in that individual being rated, which can translate

More information

New Tax Regime May Upset Your Estate Planning

New Tax Regime May Upset Your Estate Planning New Tax Regime May Upset Your Estate Planning November 3, 2014 No. 2014-49 If your estate plan includes creating a trust in your will or you are a trust beneficiary or an estate trustee, you may be affected

More information

Flexible Protection Plan. Protecting your lifestyle and family with one simple plan

Flexible Protection Plan. Protecting your lifestyle and family with one simple plan Flexible Protection Plan Protecting your lifestyle and family with one simple plan Contents Introduction Income Protection Life Protection Critical Illness Protection Protection with a heart Extra things

More information

NexGen Tax Cases The Corporate Tax Deferral and Income Program

NexGen Tax Cases The Corporate Tax Deferral and Income Program 2014 NexGen Tax Cases The Corporate Tax Deferral and Income Program Business owners and managers in Canada who have incorporated have two major income tax advantages available to them over those who have

More information

Canadian Health Insurance TAX GUIDE June 2014

Canadian Health Insurance TAX GUIDE June 2014 Case study Canadian Health Insurance TAX GUIDE June 2014 Corporate ownership of critical illness insurance Life s brighter under the sun Sun Life Assurance Company of Canada is a member of the Sun Life

More information

Understanding Annuities

Understanding Annuities Annuities, 06 5/4/05 12:43 PM Page 1 Important Information about Variable Annuities Variable annuities are offered by prospectus, which you can obtain from your financial professional or the insurance

More information

F O R Y O U R F A M I L Y

F O R Y O U R F A M I L Y FOR YOUR FAMILY Your partner or loved ones will face many decisions upon your death. We hope this brochure makes it easier for them to make those decisions then and easier for you to talk with them about

More information

Financial Services Commission of Ontario Commission des services financiers de l Ontario. Life Income Fund/Locked-In Retirement Account

Financial Services Commission of Ontario Commission des services financiers de l Ontario. Life Income Fund/Locked-In Retirement Account Financial Services Commission of Ontario Commission des services financiers de l Ontario SECTION: Life Income Fund/Locked-In Retirement Account INDEX NO.: L050-100 TITLE: APPROVED BY: Requirements of the

More information

Segregated funds or mutual funds

Segregated funds or mutual funds Segregated funds or mutual funds Do you know the differences? Although there are many similarities between these two investment products, there are also some important ways in which they differ. One important

More information

INCORPORATING YOUR BUSINESS

INCORPORATING YOUR BUSINESS INCORPORATING YOUR BUSINESS REFERENCE GUIDE If you are carrying on a business through a sole proprietorship or a partnership, it may at some point be appropriate to use a corporation to carry on the business.

More information

Estate Tax Concepts. for Edward and Tina Collins

Estate Tax Concepts. for Edward and Tina Collins Estate Tax Concepts for Edward and Tina Collins Joseph Davis, CLU, ChFC 215 Broad Street Charlotte, North Carolina 26292 Phone: 704-927-5555 Mobile Phone: 704-549-5555 Fax: 704-549-6666 Email: joseph.davis@aol.com

More information

I request a refund in accordance with paragraph 7(b); or

I request a refund in accordance with paragraph 7(b); or CIBC RETIREMENT SAVINGS PLAN AGREEMENT 1. ESTABLISHMENT OF PLAN: Canadian Imperial Bank of Commerce ( CIBC ) agrees to hold on deposit in a CIBC Retirement Savings Plan (the Plan ) contributions received

More information

Your U.S. vacation property could be quite taxing by Jamie Golombek

Your U.S. vacation property could be quite taxing by Jamie Golombek June 2015 Your U.S. vacation property could be quite taxing by Jamie Golombek It seems everywhere we look, Canadians are snapping up U.S. vacation properties. Though your vacation property may be located

More information

PEPP Talk... on Variable Pension Benefit

PEPP Talk... on Variable Pension Benefit PEPP Talk... on Variable Pension Benefit This PEPP Talk provides members with information about PEPP s Variable Pension Benefit (VPB). When you are retired and ready to begin receiving income, you must

More information

Independent consumer guide to life insurance

Independent consumer guide to life insurance Independent consumer guide to life insurance Who we are and what we do The Irish Financial Services Regulatory Authority was established in May 2003 to regulate financial services firms in Ireland. Our

More information

Retirement Income Options

Retirement Income Options Retirement Income Options How will you spend your retirement? Table of Contents Introduction...4 Retirement Considerations...5 Other Considerations...8 Entering Retirement...9 Retirement Income Options...10

More information

UNIVERSAL LIFE INSURANCE. Flexible permanent protection

UNIVERSAL LIFE INSURANCE. Flexible permanent protection UNIVERSAL LIFE INSURANCE Flexible permanent protection A solution to your financial security needs and goals Universal life insurance from London Life At London Life, we create products to help you meet

More information

Tax Planning Opportunities Involving Professional Corporations

Tax Planning Opportunities Involving Professional Corporations Tax Planning Opportunities Involving Professional Corporations A Discussion Paper Prepared by: Alan Koop, CA Prepared for: The Saskatchewan Provincial Court Judges Association Table of Contents Executive

More information