Is Your Estate (Or Your Parent’s) Waiting To Explode?

When you die, you can transfer your assets tax-free to your spouse. But when your spouse dies and the assets are passed on to other heirs, 50% of the increase in the value of some assets will be subject to tax. So, assets like your cottage, stocks, company shares, and other investments left to your heirs may be subject to capital gains tax – a tax must be paid before your heirs get anything!

Most people don’t know about this devastating time bomb. But a simple plan can help you protect more of what you’ve worked for. What are your options?

Creating an effective estate plan means ensuring your beneficiaries are looked after. There are a number of ways to help pay for this tax, but which one is best for you?

Some choices:

• You or your family can start saving today.
  
• Your heirs can borrow the necessary funds from the bank.
  
• Your estate can sell the assets.
  
• You can purchase life insurance to cover the growing liability.
  

The best solution…

Life insurance can be the most effective estate-planning tool to fund the tax liability. You can design a plan to provide you with tax-free cash exactly when it is needed to pay the future tax obligation. It guarantees that your heirs don’t lose their inherited assets because of a large tax bill. What you get is peace of mind and your heirs get the property you intended them to receive.

If you are the child with a parent in the above scenario this may be something you want to discuss with them. Not a fun topic, but a conversation one should have in the event something does happen and you are the one left with a sizable tax bill.