Your estate represents, in part, what you have built in your lifetime. A cottage? RRSPs? Mutual funds? A home? A small business? A farm? They mean a lot to you - and to the family you leave behind. So it can be tragic if your heirs are forced to liquidate these assets just to pay capital gains taxes and other estate charges they might not be able to afford.

Upon your death, or that of your spouse, capital gains tax is triggered on the growth of your real estate, equity in businesses, and stocks. In addition, the full value of RRSPs and RRIFs are considered cashed in and subject to income tax. The result can be an estate of considerably less value than you intended for your heirs. In fact, capital gains tax on real estate - a cottage, for example - can make the property too expensive for your surviving family to keep.

The Estate Preservation Strategy involves three simple steps.  The first is to defer taxes for your spouse, should you die first. This can be accomplished by naming him or her as beneficiary of your RRSP or RRIF, while willing your spouse all your other assets. This way, taxes are only due on your spouse's death - this strategy is called a Spousal Rollover. The second step involves working with our President's Group advisors to estimate potential capital gains tax and other taxes and charges that may be levied against your estate once a surviving spouse dies. The third step is to set up an universal life policy to pay these claims with its death benefit, maximizing the value of your estate for your heirs. For example, you could prepare for paying the capital gains on your cottage by investing in mutual funds, stocks or bonds. Alternatively, they could use a term insurance policy.

The result is peace of mind. Your estate is passed on intact and worry free - to be enjoyed by the ones you love for years to come. This is a creative insurance solution that our agents can customize for your specific needs.