Categories for estate planning

Are life insurance premiums tax deductible?

Are Permanent Life Insurance Premiums Deductible?

August 18, 2021 10:56 am Published by

A common question I will get during a review of permanent life insurance options is whether the insurance premiums paid are deductible for tax purposes.  For those unfamiliar with permanent life insurance benefits, please review my article: https://mgfadvisory.ca/news/2016/12/06/3-hidden-benefits-of-permanent-life-insurance/   Seek Tax Advice Below I’ve overviewed some of the general rules surrounding deductibility of life insurance premiums for information purposes.  However, please be advised before continuing in this article that only a public practice accountant should be provided you advice on whether any premiums paid by you or a related entity are deductible for tax purposes. As part of my service...

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The Three D’s: Building A Strong Financial House

December 12, 2019 8:48 am Published by

Ask any child about the lesson they learned from the ubiquitous fable “The Three Little Pigs” and they’ll invariably tell you, “build a strong house!” While that may seem obvious to most of us on a literal level, we often neglect to heed this advice on a metaphorical one. Indeed, while we no longer fear the Big Bad Wolf and his machinations, the lupine specter emerges in the form of the contingencies of life that affect our financial well-being. The Strong Foundation of Insurance Building a financial plan is tantamount to building a financial house, and a strong foundation is...

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asset transfer

The Asset Transfer Strategy Making sure the CRA is Not One of Your Heirs

August 16, 2018 12:52 pm Published by

  In most cases one has very little control over what happens after death; however, from a financial standpoint, there are certain actions you can take now that will help control what happens to your assets after passing, lift potential burdens from your family and loved ones and, most importantly, keep the CRA from becoming one of your heirs.   Deemed Disposition Upon one’s passing, the Canadian Tax Act deems an individual must dispose of all assets at fair market value, with the exception of rolling them over to a spouse at cost. However, the deemed disposition will presumably occur...

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corporate insurance2

Beyond IPP: Alternative Retirement Saving Strategies in Changing Times

April 26, 2018 4:10 pm Published by

Corporate Life Insurance, a wonderful asset that can be used to accumulate your retirement savings in a tax-exempt vehicle, which thereby keeps it away from tax changes that have cost owners quite a bit over the last 12 months.       IPP or Corporate Whole Life Permanent Policy? “I’m planning to retire, and in this new tax regime I don’t know whether I should pay a higher salary, keep contributing to my RSP and set up an IPP in a company, or consider another alternative?”   Saving for Retirement In light of the new tax changes that prohibit how...

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Do You Have a Succession Plan in Place?

January 7, 2018 4:22 pm Published by

“Exploring opportunities you may have to save tax or grow your wealth through early estate or succession planning may be the best New Year’s resolution you’ll ever make.” I’m often approached by shareholders asking me about succession strategies. It’s a great question.  When I ask them what they have in place legally to transition their assets or corporate shares, they usually know there’s something in place, but don’t have a clear understanding of what it entails. It’s important to make sure you know what you have, what it’s for, and how it’s going to be funded.  Because if you do...

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Tax and Estate Benefits of Charitable Gifts

January 18, 2014 10:43 am Published by

A donation given to a registered charity in Canada can be claimed as a charitable donation on your tax return.   The Donation Tax Credit available after the first $200 of annual donations is  effectively the top marginal tax rate in a given Province or Territory.  For 2014 in British Columbia, that top rate is 45.8%.  That is almost half of your donation that can come back to you in the form of the Donation Tax Credit, which offsets other taxes payable. For example, John decides to support his local church with a $1,000 donation.  Assuming John is a resident of...

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