Your legacy represents a lifetime of earnings and savings - your lifetime. If it's worth a lifetime to accumulate, it's worth keeping. Preserving your wealth ensures your heirs receive the full value of your legacy.

Remember, the government will probably be an unintended beneficiary of your estate. You may be able to offset your tax liability through careful planning.

What gets taxed upon your death?

• RRSPs and RRIFs, unless rollover exemption applies
• Capital gains on mutual funds, stocks and bonds, your cottage, rental property, land investments, business assets, antique cars, artwork and jewelry.

What to do?

• Ensure you utilize spouse or common-partner rollover
• Have your heirs pay taxes from their own income or assets
• Have your heirs borrow money or sell estate assets
• Purchase life insurance to offset your tax liabilities

Buy enough life insurance to cover your estate taxes. No matter how stiff the premiums might seem, it's a bargain. - Fortune Magazine, March 1996.

Equalizing your estate is critical especially if you own a cottage, rental property or a farm that cannot be easily divided or sold. What if your assets are tied up in buildings, land or machinery? What if one child is interested in the cottage while the other children are not? What if your spouse still requires an income and does not want to depend upon the children or sell assets? Or the child who wants the asset but cannot raise funds to buy out the other siblings?

These critical issues need to be addressed before it's too late. An estate equalization strategy, using life insurance can address all of these situations to enable fair and equitable distribution of assets to all heirs.  

Life insurance provides a guaranteed financial commitment provided by a benefit triggered upon the death of one or both parents. A cash benefit is made available at the precise moment it is needed and is completely tax-free.

Talk to your financial advisor to ensure your legacy is preserved.