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Need help with your income tax?
The CLSC René-Cassin offers a free Income Tax Clinic between March 17 and April 10, 2008 to those who:
• Live in Côte-St.-Luc, Hampstead or Snowdon West
• Have yearly income under $20 000
• Need a simple income tax return
Info: 514-488-3673 ext 1496

Adopt Wally
Wally is an affectionate 6-year-old male cat who loves life. His presence will put joy in your home. Wally is taking a supplement to protect his kidneys. Call Animal Rescue Network: 514-938-6215

Insurance strategies for seniors
Common Cents
Ivan Cons
I am often asked what value life insurance plays in estate planning and how it works to minimize future capital gains taxes that may be applicable on an estate.
Upon the demise of both spouses, RRSPs and RRIFs become fully taxable and are no longer sheltered. This means that the children will not inherit the full value of these accounts tax-free. It is often recommended to purchase life insurance with part of the proceeds of a RRIF to ensure that the estate stays intact. The future dollars provided by a life policy, either of an individual or both spouses jointly, is the most straightforward tax efficient and cost efficient method to offset the impact of taxes on an estate.
The same methodology can be applied to future capital gains on non-residential real estate, including recapture of depreciation, which can again have a serious impact on an estate.
Many people are unaware that a niche strategy exists for high net worth individuals to accomplish the above. This strategy, called the Insurance Funding Strategy, allows the policyholder to reduce the net annual cost of the life insurance policy. There are specific criteria the individual must meet in order to put this into effect, however, significant savings can be generated. It is important to consult with your tax advisor prior to putting this strategy in place.
Ivan Cons is an independent broker specializing in estate planning, retirement and insurance.