06/23/2023
In life, nothing is guaranteed, except death and taxes.
As Benjamin Franklin puts it...
"nothing is certain but death and taxes".
Most immigrants believe that it's almost impossible to get rich in Canada due to the country's tax system.
You know, you get taxed when you earn, you get taxed when you spend, then you get taxed when you die.
As we all know, the more money an individual makes, the more that individual may pay in income taxes. This is due to Canada's prgressive or graduated tax system.
What most Canadians aren't aware of, however, is that they may get taxed the most, when they die.
If you managed to accumulate wealth during your lifetime, all your assets, except your primary residence are considered to have been disposed of before death. It's like selling all your assets a day or an hour before you die.
Of course, while physically unsound, this is how the government looks at it in terms of your final taxes.
That deemed asset disposition of course, results to capital gains taxes in the hands of your estate.
So your heirs may need to liquidate your assets in order to pay whatever taxes you owe when you die, or use any liquid cash from your estate, both of which reduces the net estate value that you're going to pass to the next generation.
If a family's wealth gets reduced everytime it gets transferred to the next generation, how come the old rich seems to multiply their wealth each time it gets transferred from one generation to the next.
The old rich simply don't want the government to be their biggest beneficiary at death.
With this in mind, they protect their next generation's wealth against the tax implications of death when they have assets or businesses to pass on. By far, there's only one asset class that allows you to presserve or even multiply your wealth when you pass on, and do it tax free.
It's called life insurance.
I bet you've heard about it...
Most people don't like to get life insurance because they don't think that they're going to die, or because they have money to leave to their loved ones.
"Life insurance is an efficient way to transfer money to your heirs.", said Malcome Forbes.
It's the only asset class, that you can pass to your next generation that doesn't get cut in half, except your primary residence, of course.
This is the secret of the old rich, and you don't have to come from an old rich background to take advantage of this efficient wealth transfer tool.
Beyond paying for the immediate cash needs at death, or income protection for young families, you can use life insurance as an effective tool to help you build and transfer generational wealth.
If you would like to learn how you can build and pass on generational wealth with life insurance, feel free to schedule a time with me.
LEADING INSURANCE COMPANIES BID HEAD TO HEAD FOR YOUR BUSINESS, SO YOU CAN COMPARE LIFE INSURANCE, DISABILITY INSURANCE, HEALTH AND DENTAL INSURANCE, CRITICAL ILLNESS INSURANCE, NO MEDICAL LIFE INSURANCE AND MORTGAGE INSURANCE
