What is estate planning?
An estate is not just a home or physical belongings, it represents all the financial assets that can be passed on to charity or loved ones when you die. It may include: a family business, a cottage, a pension, a bank account and more. A carefully considered estate plan helps ensure these assets are distributed according to the wishes of the deceased and their beneficiaries.
For example, if you’re going to be an executor (or liquidator in Quebec) of your parents’ estate, you’ll want to ensure it is protected and that there is cash available when you need to pay taxes and final expenses.
Why do an estate’s assets need protection?
The value of your parents’ estate can be eroded by legal fees and taxes. If their money is invested in equities, the amount remaining when they die could be less than their initial investment. You also need to consider inflation.
How can you protect an estate?
We offer Estate Protection segregated fund policies that feature the potential for growth and protection against market risk and inflation, while bypassing unnecessary taxes. These unique segregated fund policies include built-in guarantees of up to 100 per cent of the principal investment, minus fees and withdrawals.* As insurance products, the payout from these segregrated fund policies would be passed directly to your parents’ beneficiaries.
Available to people between age 80 and 90, Estate Protection segregated funds benefit you and your parents, allowing them to keep more of their money in the family.
What are the benefits?
Estate Protection segregated funds offer these benefits:
- One hundred per cent of the death benefit goes directly to the chosen beneficiaries*
- No intermediary costs
- No unnecessary taxes
- Choice of death benefit: lump-sum payout or income stream (annuity)
- Estate matters remain private**
* Guarantees are less a proportional reduction for withdrawals, including taxes, short-term trading fees and any other applicable charges. In addition to the 100 per cent death benefit guarantee for premiums applied to the policy prior to age 91, estate protection policies provide a maturity benefit guarantee, which is 75 per cent of your premiums applied to the policy prior to age 91. The youngest annuitant must be at least age 80 and no more than age 90 at the time the policy is issued.
** In Saskatchewan, executors must disclose all known life insurance policies owned by the deceased, including segregated fund policies. They must list the insurance company, policy number, designated beneficiaries and the value at the date of death.
Ready to talk with your parent(s) about planning their estate and leaving a legacy?
You don’t have to do this alone. An advisor can help you start a conversation with your parents about estate planning and protection. Plan now so you can help your parents secure their legacy.
A description of the key features of the segregated fund policy is contained in the information folder.
Any amount that is allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.
In Quebec, advisor refers to a financial security advisor for individual insurance and segregated fund policies.