Insured RRIF Strategy

The Situation
You have significant wealth in a RRIF and want to pass on this asset to your heirs but know that income tax will have to be paid on the RRIF balance, leaving only a fraction as an inheritance. You are currently receiving income from the RRIF but do not need all of it to live on.

The Strategy
Purchase a tax-exempt life insurance policy to fund the income tax liability due on the RRIF at death. The wide range of permanent cash value life insurance products in the market place allow you to customize your coverage to offset the future tax liability. A joint-last-to-die policy can be used where the RRIF may be transferred to a spouse at death.

This Insured RRIF Strategy provides:
· Funds to offset future tax on a RRIF balance
· Permanent life insurance protection
· Tax-free death benefit
· Flexibility to change policy beneficiary and coverage amount

This material is for information purposes only and should not be construed as legal or tax advice. Every effort has been made to ensure its accuracy, but errors and omissions are possible. Individual circumstances may vary and specific legal and tax advice is recommended.

This strategy is based on current tax legislation. Future tax changes and market conditions may affect this program.

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