When you die, you can transfer your assets tax free to your spouse. But, when your spouse dies and the assets are passed on to other heirs, 50% of the increase in the value of some assets will be subject to tax. So, assets like your cottage, stocks, company shares and other investments left to your heirs may be subject to capital gains tax. And this tax is paid before your heirs get anything. It's a tax time bomb most people are unaware of and don't plan for
Creating an effective estate plan means ensuring your beneficiaries are looked after. There are a number of ways to help pay for this tax, but which one is best for you?
Life insurance can be the most effective estate planning tool to fund the tax liability. It can provide you with tax-free cash exactly when it is needed to pay the future tax obligation. It guarantees that your heirs don't lose their inherited assets because of a large tax bill. What you get is peace of mind and your heirs get the property you intended them to receive. To find out more, talk to Andy Husband at 780-425-4058 or e-mail us .