Insurance

Total 35 Posts

Tontine – an ‘old’ annuity idea re-visited

As people live longer their cash requirements can increase exponentially. My Blog colleague, Audrey Miller, recently told me that, in Ontario, publically funded Nursing home expenses for a private room start at $30,000 per year and private retirement residences are much more expensive. There are other potential cash requirements such as the expense of personal care assistants. In addition to being faced with increasing costs of living, the problem is compounded by the fact that a….

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In the News, Insurance, Investments, Uncategorized

ESTATE PLANNING REFRESHER: TRANSFER OF LIFE INSURANCE

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 reports a taxable gain, which is essentially the proceeds of disposal less the transferor’s’ adjusted cost basis (ACB) in the….

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Business Succession Planning, Canada Revenue Agency, Estate Administration, Estate Planning, Guardianship, Insurance, Spouse, Tax Issues, Trusts

Spousal trust and life insurance

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.
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Canada Revenue Agency, Estate Administration, Estate Planning, Executors, Insurance, Spouse, Trustee

Grandfathered Agreements

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.

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Canada Revenue Agency, Estate Planning, Executors, Insurance, Loans, Tax Issues, Wills
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