Baby boomers in Canada will inherit approximately $750 billion over the next decade, finds a new CIBC Capital Markets report, which notes this will be the country’s largest-ever transfer of wealth. More than 2.5 million Canadians are older than 75, and 45% of them are widowed, adds the report. Overall,…
Life insurance can be a useful tool in estate planning to offset tax liabilities and supplement the assets that may otherwise be available to leave to a surviving spouse or other family members. An article by Michael Grob, featured in the most recent issue of…
The problem with the typical retirement plan is that it focuses on long term savings. This approach emphasizes getting high returns on investments, and cutting back on expenses to create a bigger pool of savings. Instead, the key to creating sustainable income is to use…
Looking to become wealthy one day? Pay close attention to what high-net-worth (HNW) investors do with their money. By following the moves of people who have demonstrated the ability to create wealth, you stand a much better chance of creating some for yourself. One useful…
This year’s federal budget proposed measures that impact certain transfers of life insurance policies. But the broad nature of the proposed changes creates collateral damage in a number of areas. The government has proposed changes to subsection 148(7) of the Income Tax Act (the Act), which governs the…
Clients who need access to cash will come to you for solutions. If they have permanent life insurance, one option is cashing out the policy. But while it won’t affect future insurability, there’s a tax hit if a client surrenders his policy prior to death….
As the number of years Canadians spend in retirement continues to rise, the way that retirement funds are invested is increasingly important. Developing strategies that mitigate against the financial risks associated with retirement and provide clients with financial security into their 80s and 90s is…
If a client wants to keep her cottage in the family, she should consider claiming the principal residence exemption when she transfers or sells the property to family members. This way, she’ll be able to pass the property tax-free. This applies whether the cottage is transferred, sold…
Tax and estate planning usually takes place during a client’s lifetime. That said, there are post-mortem planning opportunities that you should discuss with clients. The goal of post-mortem planning is to reduce the overall tax liability for the estate and its beneficiaries. So create a…
Most people know what insurance is, but few people have ever been told what it can do. The combination of turbulent financial markets and record low interest rates have challenged investors for several years. Conventional guaranteed financial instruments like bonds and GICs, long considered safe…