How to protect your estate with permanent life insurance?

DSC04247

Estate Planning

Estate planning with life insurance is a financial planning tool that helps create, conserve, and transfer your assets with the least amount of financial loss, loss of assets.

You’ve worked hard your whole life to build up your assets, whether it’s secondary property, business, cottage, or other investments. To help make sure you leave these assets to your family with the least amount of taxes owing, or better yet, without having to sell them, it’s important to create an estate plan with life insurance.

You know that the assets you own have most likely increased in value over times. But this also means, by the time you pass them on to heirs, they will be worth much more than you paid for them, triggering a significant percentage of capital gains taxes for your family.

For example, if you bought a seasonal property and it increased in value by $200,000, then 50% of that amount ($100,000), would be taxed at your estate’s marginal income tax rate. If that rate is 45%, then your heirs would incur $45,000 in immediate tax liability at time of death.

To avoid this situation, you can purchase affordable life insurance to cover the capital gain tax liability and ease the burden on your family.

By protecting your estate with life insurance, you’re making sure your family has the cash to pay the taxes, and ensuring they don’t have to sell the assets you’ve worked so hard to build. And because the death benefit is tax-free, you’re helping your family to offset taxes and fees – passing on more of your wealth to your loved ones.

 

Yan Li 李 燕

Yan Li 李 燕

(Yan Li, 李燕,President of Canada Valuelife Financial Services Corporation; Registered Teacher and Licensed  Insurance Advisor in Ontario Canada;  President Award Winner;  Author; Translator; Value Life Coach.   Tel: 416-388-6484.  Email: yan@find-the-value-in-life.com. Website: www.find-the-value-in-life.com)

P.S.: Join our mailing list for more upcoming Value Life news!


Leave a Reply

*