Life insurance and registered savings, such as registered
retirement savings plans ("RRSPs"), registered retirement
income funds ("RRIFs"), private pensions and tax-free
savings accounts ("TFSAs") can form an income tax
efficient part of an estate plan and can be structured to allow for
estate administration tax and probate fee savings and creditor
protection. These types of assets are governed by specific
legislation, which impact how they may be given to beneficiaries
and death. This Advisory provides a high level overview of these
assets in the context of succession planning.
LIFE INSURANCE
Life insurance involves an agreement with an insurance company
under which premiums are paid for a specified period of time in
exchange for an eventual payment of a death benefit to a
beneficiary upon an insured individual's death. Life insurance
can be used to build wealth, replace income, add liquidity to a
deceased's estate, fund taxes, provide financial security
