How to Maximize Your Wealth Transfer

Baby boomers are set to pass to their children more than $68 trillion, the biggest wealth transfer ever.

With the biggest wealth transfer in history on the horizon it's best to position yourself correctly to pass down your assets, whole life insurance can help you manage taxes and probate fees so more of your inheritance gets to your heirs.

There are numerous assets that could be extremely valuable and which could trigger a significant tax bill when you leave them in your will. These could include, for example, RRSPs, vacation or rental properties and a business.

Without whole life insurance, the beneficiaries of your estate might have to sell off a considerable amount of your investment assets or even the family vacation home to cover your final tax bill.?

By taking out a life insurance policy that will provide a large tax-free lump sum that will cover the costs of the estate’s tax bill. This means that your entire estate is left to your beneficiaries, rather than having to use a large chunk of it to cover taxes.?

Some investors have more income and assets than they’ll need during their retirement years and are naturally keen on leaving a meaningful legacy for their loved ones and/or charities that they support. While many people assume that investments, real estate or business ownership can be the best ways to increase the value of their estate, all of these assets come with tax implications, both annually and when the time comes to pass them on to beneficiaries.

However, a possible solution to that is to reposition excess assets that bring about an annual tax burden and use the proceeds to buy a life insurance policy. By moving surplus, taxable funds into an exempt permanent life insurance policy, you could:

• Reduce the amount of taxes you have to pay during your lifetime.
• Reduce probate fees on the assets you leave in your will.
• Create a larger amount of tax-free money available to your beneficiaries when you die.
• Maximize the value of your estate.?

If you already have life insurance be sure to check the amount of coverage you have compared to the amount of coverage you need for taxes, probate fees, etc. as well as using life insurance to pass down a large inheritance to your estate tax-free.

If you do not have whole life insurance and have considerable amount of assets, I would highly suggest getting coverage as today will be the cheapest it will be for you going forward, your older self will thank you!

If you have any questions about whole life insurance and protecting your assets please feel free to reach out to me at [email protected]