Life Insurance can lower your Estate tax liability
You work hard, save for retirement, and own property. It is important to know what your estate liabilities are in relation to: capital gains, mortgage debt, car loans, unpaid taxes, and business-related liabilities. There are many ways to reduce your estate liabilities:
Significantly reduce the impact of income taxes upon death - Here is how;
Purchase life insurance to cover capital gains taxation in the estate
Use the spousal (and disabled child) rollover provisions of RRSPs or RRIFs
Leave assets that have accrued capital gains to your spouse to defer tax
Leave assets without capital gains to other (non-spouse) family members.
While you are alive, gradually sell assets having capital gains, to avoid dealing with the gains all at once in your estate.
Taxes may be payable on gains in income-producing real estate, a second residence, or cottage or to any other assets left to surviving family members, such as shares of a business.
Consider charitable donations to lessen taxes to paid by the estate
