The purpose of insurance is to provide for things we cannot afford to replace - a loss of life, loss of income, or loss of property. As part of our total wealth planning process, we discuss your risk management plan and advise on your preparedness should one of these events happen to you.
Proceeds of a life insurance policy are received tax-free to beneficiaries making it a tax-efficient, cost-effective way to distribute wealth. Life insurance can provide you with the potential to leverage small premium payments into greater estate benefits.
The summertime retreat has been in your family for years. You love the cottage and hope it will stay in your family for generations to come. Will your estate be able to cover the tax liability? You can defer the payment with a spousal rollover upon your death. However, at your spouse's death, 50% of the capital gain on the cottage is taxable and due. The tax can be paid using life insurance proceeds. Keeping the cottage in the family requires some careful pre-planning. Too often, families are discovering that the tax owing is so high that they end up having to sell the cottage in order to pay the tax.
Let's discuss your risk management plan. Contact us today
The Galbraith Investment Group