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Personally taking care of your tax
and estate planing needs can be a real challenge. Often insurance
planning is an integral part of the overall plan. Having a partner
to assist you with information on customized insurance solutions
can be a real asset.
We at Martell Insurance Services
want to be that partner.
We provide specialized information
about the role life insurance can play in helping clients achieve
their financial goals. We understand law, life insurance and accounting
and their link to complex tax and estate planning. More importantly
we know when and when not to incorporate life insurance.
Life insurance has long been recognized
as an important tool in estate and succession planning. Traditionally,
life insurance has been used in personal estate planning for such
things as creating liquidity to satisfy estate liabilities including
tax liabilities: estate equalization; estate creation and funding
charitable bequests. For business and succession planning purposes
life insurance has traditionally been used as a funding vehicle
for the survivor ship obligations under a shareholder agreement;
for key person protection and for business loan protection. Each
of these traditional uses for life insurance focuses on the protection
element associated with life insurance. The existence of a life
insurance policy ensures that cash will be available to fulfill
particular needs at a specific point in time when liquid funds
are needed.
Life insurance is often the most
economical and tax efficient vehicle for accomplishing many estate
and succession planning objectives. However in addition to traditional
applications modern life insurance products and the unique tax
treatment afforded these products can provide more than simply
a tax-free death benefit. Product innovations in recent years
have created the ability to design life insurance solutions which
are better suited to the needs of the clients. Life insurance
products combine pure insurance protection with tax preferred
investment attributes. In addition where the appropriate beneficiary
designation is in force life insurance products can provide the
possibility of creditor protection. As a result of this combination
of features life insurance products are unique financial instruments
which can often enhance estate and succession planning and allow
for a variety of attractive and tax efficient planing opportunities.
Life insurance products can generally be divided into two categories:
Term Insurance and Permanent Insurance. Term insurance is typically
used to satisfy a temporary insurance need, while permanent insurance
products are most effective when dealing with insurance need ins
the business and succession planning context.
Traditional uses of lie insurance in personal estate planning;
Estate Creation.
Final Expenses.
Estate Equalization.
Charitable Giving.
RRSP/RRIF Estate Maximization.
Funding of Capital Gains Taxation.
Traditional uses of life insurance in the corporate context are
listed below;
Buy-Sell Funding
Collateral Insurance
Key Person Insurance
Split Dollar Arrangements
Estate Freeze
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