PI Financial Services

Strategy: Estate Bond

 

If you are one of the privileged Canadians, you have spent your life working very hard to accumulate significant wealth. Yet at some point you may realize that you will not need to spend everything that you have accumulated. At that time, you will want to consider how to maximize the amount that will be transferred to the next generation. This is where an Estate Bond can help.

With an Estate Bond, you would purchase a Universal Life or Whole Life permanent insurance plan, and move a portion of your savings from a tax-exposed investment to a tax-exempt insurance policy. The Estate Bond provides immediate life insurance protection, and an investment within the policy that accumulates on a tax-deferred basis. In the event that you pass away, your heirs will receive the insurance proceeds tax-free. The Estate Bond strategy may increase the size of your estate, while reducing the amount of taxes you and your heirs will pay.

 

Who It Works For:

  • You are over 50 years old.
  • You have significant capital that exceeds your lifestyle requirements.
  • You have funds invested in GIC's or other low fixed-rate investments that you want earmark to leave to your family or charity at death.
  • You are receptive to long-term planning strategies.