Asset protection, wealth transfer and estate settlement solutions

A Will and estate plan can be more than a set of directions for executors and loved ones; proactive estate planning can provide the peace of mind knowing that your wishes will be carried out and your loved ones taken care of.

Our estate planning solutions could be ideal if you need help:

  • Investing your assets while guaranteeing a payout for your beneficiaries
  • Maximizing the wealth you pass on to your loved one through tax-minimization strategies
  • Replacing your income in the event of a disability, critical illness or long-term care situation
  • Transferring your wealth to your beneficiaries tax efficiently
  • Providing liquidity to help meet the tax obligations and costs associated with settling your estate
  • Determining the most effective way to give to the charitable causes you support
  • Managing executor or Power of Attorney duties

To learn more about protecting and transferring wealth, please contact us.

Everything you need to know about estate planning

Proper estate planning requires careful consideration of many factors: reducing taxes, providing for loved ones, passing on assets in an orderly fashion, creating a charitable legacy and more.

Better understand your choices and make informed decisions with our complimentary estate planning guide.

It will help you understand important topics such as:

  • Having valid and current Wills for all adults in the family
  • Evaluating insurance coverage
  • Understanding ownership structures (i.e. the use of Joint Tenancy agreements)
  • Realizing advanced estate-planning opportunities (i.e. the use of Living Trusts)
  • Planning charitable gifts

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Insurance solutions


A solution for your corporate needs

Every day, you make crucial business decisions affecting the financial health of your business organization. And you know how important it is to have the best possible services and products to help effectively manage your finances. Making the right financial decisions is a big responsibility – and we can help.

Some of the best opportunities for small corporations, including holding companies, come from using tax-exempt life insurance. It is a tax-efficient means of transferring wealth out of a corporation into the hands of the next generation when you pass away. 

We can provide you with access to a vast array of products and services geared towards the needs of businesses and corporations. An important part of preparing your business for continued success is to prepare it for the unexpected. We have access to a wide array of business protection strategies:

Funding buyout agreements

In the case of partnerships, the death or disability of one partner can have a devastating effect on the survival of a business. Insurance can provide an excellent method of funding buyout agreements so that the remaining partner takes full control of the business and the surviving family is properly compensated.

Shared ownership

For companies that wish to retain top employees, the shared ownership of a permanent insurance policy can be an attractive opportunity. It protects the company against the death of the employee, and motivates that person to remain with the firm through the enticement of an attractive, low-cost retirement asset. This arrangement can create a win-win situation for everyone.

Minimizing corporate taxes

If corporate assets are invested in fixed income, then an insurance strategy can not only reduce its taxable income but it will lower the value of the business by the amount of the investment, thereby reducing the inevitable capital gains tax liability.

Maximizing corporate assets

By taking advantage of tax-deferred growth inside a Universal Life or Whole Life policy, corporate assets can avoid accrual taxation and grow to a much greater value than if they were invested in a regular account. Not only that, but upon death, most, if not all, of the proceeds can be paid out of the corporation tax-free. Ordinarily they would be paid out as taxable dividends, requiring approximately one third of the value to be paid in taxes.

Executive life insurance planning

Executive life insurance enables you to provide managers and executives with a supplementary benefit package. In this instance, both you and your executive purchase a tax-exempt life insurance policy with your executive named as the insured. Both of you will share the benefits. This form of insurance provides protection for an executive's family, while you benefit from an investment offering tax-deferred growth.

Business succession planning

A business succession plan can help protect your business when an owner-shareholder retires or passes away. Elements of a successful business succession plan include buy-sell agreements, a Will and powers of attorney.

A buy-sell provision is a shareholder agreement that allows for the orderly transfer of shares in the event of disability, death or retirement of a shareholder. Upon the death of a shareholder, the buy-sell agreement generally instructs the corporation to purchase the shares of the deceased. Insurance is a cost-effective way of providing the necessary funds to carry out those instructions.

Key person insurance

Many companies, public or private, large or small, often rely on the skills and contributions of a single person. Proficient with all levels of the firm's operations, respected by staff and trusted by clients, such key individuals play a crucial role in the company's success. The sudden departure of a key person can create a void, difficult, if not near impossible and costly, to fill. Taking out life insurance on the key person, or people, in your organization can help mitigate these costs.


A solution for your personal needs

We understand that creating and effectively managing your wealth is just part of the equation. It's also important to preserve it. Through the use of insurance strategies, we can help you preserve your wealth during your lifetime, and protect the value of your estate for your family and other beneficiaries. Insurance strategies can also help you maximize the wealth you transfer to your heirs.

Estate creation and preservation

You can offset costs that are incurred at death and preserve your estate by having insurance proceeds pay them for you. Taxes, liabilities, estate-related and other future costs can all be offset by your permanent insurance coverage. By taking advantage of the preferred status of tax-exempt life insurance, you can maximize the value of your assets and maximize the value being transferred to the next generation. Living benefits insurance is also vital to estate preservation, by ensuring funds are available should you require them at a time of illness.

Tax minimization

Tax-exempt insurance can eliminate the annual taxes you pay on your investment growth, as well as those payable when you die. Individuals tired of being punished for strong earnings may appreciate this tax-protector opportunity. The long-term value of these products is that their earnings can often greatly eclipse what would otherwise be earned through regular investing.

Estate maximization and protection

If part of your portfolio is held in GICs, Canada Savings Bonds or a bank account, you have probably never given a second thought to market fluctuations. Sticking to a conservative investment strategy can lead to peace of mind in the short term, but it may put you at risk in the long run. Essentially, you risk outliving your retirement savings. Generally speaking, one way to ensure that you have enough money to meet your retirement needs is to diversify your portfolio. You can get the security of a GIC and the performance potential of the stock market without needlessly risking your hard-earned savings with segregated funds.

Income enhancement

Certain solutions using insurance products can provide a supplemental stream of cash, thereby enhancing retirement income. The net income derived from this strategy may be significantly higher than what is achievable with traditional fixed-income vehicles, especially during times of low interest rates.

 

Insurance products are offered through RBC Wealth Management Financial Services Inc. (“RBC WMFS”), a subsidiary of RBC Dominion Securities Inc.* RBC WMFS is licensed as a financial services firm in the province of Quebec.

Value-added wealth services

In addition to a vast array of investment products and solutions, we offer a number of value-added services to help you manage your wealth, many of which are complimentary for our clients.

These include:

  • Integration of your investment plan with your other service providers, including your lawyer or accountant
  • Access to financial planning services and a personal financial plan that addresses your cash flow, tax strategies, investments, retirement, insurance, estate planning and more 
  • Will and estate planning consultations through accredited Will and Estate Consultants 
  • Registered estate processing, tax reporting and T3 returns
  • Registered estate tax planning, including multiple and contingent beneficiary designations
  • Insurance consulting on a full range of individual life, health, segregated fund and annuity solutions
  • Custody and safekeeping
  • Annual consolidated tax reporting, including dispositions with book costs
  • Research, commentary and information on specific holdings, markets or economies upon request
  • Online integration of your RBC investment and bank accounts for consolidated viewing
  • Multi-currency account functionality
  • Automatic account contributions and withdrawals
  • Automatic mutual fund purchase and redemption plans
  • Electronic Funds Transfer (EFT) capabilities
  • Interest paid on cash balances in investment accounts
  • Corporate reorganization advice
  • Cashless employee stock option exercise service
  • Self-directed Registered Education Savings Plans (RESPs) and formal trusts for educational purposes and income splitting
  • Quarterly "Wealth Management Review" newsletter
  • Introduction to a full suite of RBC partners if needed for: personal, business and private banking; estate and trust services, mortgage services; direct investing; and more

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