Tax and Estate Planning in British Columbia, Canada

Life insurance and the need for estate liquidity
- Taxation of property held at death

Tax liability on RRSP and RRIF
- Your death will trigger a tax liability on RRSP and RRIF balances. A spousal rollover will defer the tax liability, but only until the spouse's death. Life insurance insuring your RRSP and RRIF means cash is available to pay the taxes on second death. What you worked so hard to accumulate ends up where you want it to go, rather than to the tax collector.

Tax liability on capital gains
- For tax purposes, your capital assets are considered 'sold' at the time of your death. To pay those taxes, significant and meaningful family assets may actually have to be disposed of. A spousal rollover will defer the tax, but only until the spouse's death. A life insurance policy, in an amount calculated to match the expected tax, will mean cash on hand to pay the taxes so that the assets, like the family cottage, stay where you want them - in your family.

Probate Fees
- In British Columbia, the probate fees are 1.4% for estate over $25,000.

Corporate-owned Life Insurance
- The Capital Dividend Account (CDA)
Life insurance proceeds are tax-free whether they are received by an individual, corporation, trust, or other entities. The capital divident account (CDA) is the vehicle through which insurance proceeds received by private corporations may be distributed tax-free to its shareholders.

Learn more about these services: Financial Planning, Retirement Planning, Investment Planning, Estate and Tax Planning, Life Insurance, RESP

Please note: Ms. Mimi Tang, offers financial planning and insurance services as an independent representative, under Mimi Tang Wealth Management and Consulting LTD. and these services are offered independently of PEAK Securities.

PEAK Securities inc., an IDA registered, full service investment broker, limits its responsibility to investment products such as stocks, bonds, and mutual funds. PEAK Securities inc. is a member of the Canadian Investor Protection Fund.

Call Mimi Tang at (604) 926-8068 or email mtang@peakgroup.com
for financial planning in Vancouver, British Columbia, Canada.