The Canada Revenue Agency (CRA) was asked if an estate that received property from an inter-vivos trust that is a life insurance policyholder would be a graduated rate estate (GRE) if the estate received property as beneficiary?
Category: Insurance
Total 30 Posts
From time to time, we are asked about the tax consequences of transferring life insurance policies particularly in the context of some common (or not-so common) estate and trust planning scenarios involving transfers. As most people know, when a transfer of ownership of a life insurance policy occurs, the transferor…
The Canada Revenue Agency was recently asked if income or capital from a proposed spousal trust that was to be used to pay life insurance premiums on a spouse’s life would disqualify the trust from ever being a spousal trust eligible for rollover of property upon creation of the trust.
The Ontario Accident Benefit schedule will be reduced as of June 1, 2016 and claimants who are older than 65 will be negatively impacted.
My most recent blogs have explored the possible use of life insurance to completely eliminate the capital gain on death (assuming that sufficient insurance was in place) provided certain stop-loss rules do not apply. Not all was lost because, “grandfathered” agreements could prevent the application of the stop-loss rules.
When the stop-loss rules were enacted, they contained grandfathering provisions that provided relief on dispositions of shares pursuant to “grandfathered agreements” or related to “grandfathered insurance policies.”
It is not unusual to see a corporate beneficiary of a life insurance policy collect the insurance on the death of the insured shareholder. Depending on the circumstances, there are creative ways to use the insurance to benefit such persons as the deceased’s estate or other shareholders of the company.
Can a person convicted of murder but found to have been not criminally responsible benefit from the proceeds of an insurance policy held by the deceased?
The breakdown of a marriage or common law relationship can raise a host of complex legal issues both for the living and the dead. One issue that seems to crop up again and again is life insurance proceeds and who should benefit.
Consider the role of insurance in meeting your overall estate plan objective.