Estate Planning

Estate Planning

The word “estate” most likely drums up pictures of affluent individuals like the Bill Gates or Warren Buffets of the world, but whether you think it or not, you have an estate. Your estate is comprised of everything you own, from your car, home, bank account and investments, business, to your grandmothers wedding rings you inherited and your personal collection of classic movies. No matter how large or how modest, everyone who owns property has an estate and something in common – you can’t take it with you when you die. Estate planning simply refers to making a plan in advance so when you pass away your property will be distributed among the people or organizations you choose and in the way you think is best. It also may include strategies for minimizing taxes and legal fees.

Business Owners

Business owners benefit from the ability to shelter growth on corporate invested assets from tax during their lifetime. They are able to access cash for emergencies, provides liquid dollars for business needs such as key person, debts, and buy-sell agreements. They can also use the tax-free proceeds at death to replace assets donated to charity or leave a legacy for heirs and favourite causes. Owners can use retained earnings sitting within a permanent participating life policy to buy back shares. They can borrow or withdraw accumulated dividends directly from the policy. Alternatively, they can use policy values as collateral when applying for a bank loan to fund a share repurchase. It provides an effective mechanism to remove funds from a holding company and can optimize the estate value at death.

Individuals & Families

Clients looking for a tax-effective alternative to a low-risk portfolio, life insurance is an option worth considering. When we think of investment asset classes, we usually think of stocks, bonds and cash investments. But permanent life insurance that stays in place for a client’s lifetime, not only providing ongoing life insurance protection, it can produce better rates of return than more traditional, conservative purchases like GICs or government bonds. It can provide significant benefits such as a tax-free death benefit, tax preferred cash value growth, possible avoidance of estate and settlement costs such as probate fees.

Contact Info

MMG Insurance and Estate Planning

Serving Ontario.

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