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Wealth Transfer Using Life Insurance Services in Manitoba, Canada

We understand how much work you’ve put into growing your wealth, and we’re here to make sure it smoothly passes on to the next generation. Secure the future you’ve imagined for the next generation – let SmartWealth Financial Incorporated guide you through efficient wealth transfer using life insurance.

Tax-Efficient Wealth Transfer Planning Strategies

Discover tax-efficient wealth transfer strategies with cash-value life insurance. This unique financial tool helps you grow and pass on assets to your loved ones and charitable causes tax-free.

One effective strategy involves moving taxable assets into tax-preferred cash-value life insurance policies to create generational wealth. 

Benefits of Wealth Transfer Using Life Insurance:  

  • Tax-deferred growth  
  • Tax-free access to cash value  within limits due to laws and regulations
  • Tax-free wealth transfer through life insurance death benefit.  

At SmartWealth, we’re proud to offer these advantages with well-planned wealth transfer life insurance solutions that align with your financial goals for yourself and your family’s next generation.

Talk to one of our advisors to learn how this strategy can benefit you.

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Why Use Life Insurance to Transfer Wealth?

Using a life insurance policy for wealth transfer provides a unique advantage by transforming a potentially taxable asset class at death into an asset class that’s both tax-advantaged while you’re alive, and when you pass on. 

Explore this option as an alternative to traditional investments and asset classes designed to leave less to your heirs.

Assets in a life insurance policy grow tax-deferred, can be accessed tax-efficiently, and are paid out tax-free at death.

With life insurance, you can:

Boost Your Financial Legacy

The death benefits passed on to your beneficiaries are tax-free, creditor-proof, and bypass any probate or estate fees, allowing for a larger after-tax inheritance.

Trim Taxes

Assets like CDs, stocks, bonds, and mutual funds in registered or non-registered investments often generate taxable earnings that are taxed yearly or upon withdrawal.

Magnify Wealth

A cash value life insurance policy growing tax-deferred can create wealth that outpaces registered and non-registered investments that are either taxable every year or at death.

Protect Your Legacy With SmartWealth Life Insurance Planning

Secure a smooth wealth transfer and protect your family’s financial future. Choose SmartWealth Financial Incorporated for comprehensive life insurance solutions.  

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Who Benefits Most from Wealth Transfer Using Life Insurance?

Ideal candidates for wealth transfer using life insurance include those who:  

  • Are retired with surplus wealth beyond their lifetime needs  
  • Aim to leave a substantial legacy for children or grandchildren compared to traditional investments  
  • Seek tax-efficient wealth transfer to the next generation  
  • Want to maximize assets by bypassing estate probate and executor fees  
  • Prefer maintaining control over assets until the chosen time for transfer  
  • Wish to provide gifts for both living and posthumously to children and grandchildren  
  • Are in good health or have healthy children or grandchildren to insure.

What is the Step-by-step Process of Wealth Transfer Using Life Insurance in Canada?

Determine how much death benefit you need (your accountant can help you with this), to finance capital gains taxes at death if you need to preserve other asset classes like a business or real estate, or decide how much wealth or taxable investments you want to transfer to life insurance on a monthly or annual basis.

  • Implement a well-planned permanent life insurance policy for yourself, your children, or your grandchildren, depositing funds that exceed the amount required to fund the insurance cost to build tax-sheltered cash values and magnify your wealth through compounding asset growth.

  • If you qualify for life insurance, you can name your children, grandchildren, or a trust as your beneficiary. If you can't, you can designate your children or grandchildren as the life-insured (generational wealth transfer) and establish a trust to finance the life insurance even after your death.

  • The accumulated death benefit pays out tax-free at your death to whoever the beneficiary is if you are the life insured. If the life insured(s) are your children or grandchildren, the policy ownership gets transferred to your children when you die, who then become the primary policy owner(s). Your grandchildren can be named the contingent policy owners at the death of your children if the grandchildren are the life-insureds.

  • Deposits can be made in 10, 20, or financed continuously for the rest of the insured's life. If you are the life insured, no contributions are required once the policy pays out the death benefit, even if the policy isn't yet considered "paid-up." If your children or grandchildren are the life insureds, a trust can be set up to finance the policy continuously after you pass away so they need not finance the policy on their own.

  • A generational wealth transfer policy becomes a vital part of the next generation's financial planning, providing liquidity at times of need or to finance major purchases or investments throughout their life and still have more than enough wealth to leave to the next generation. Empowering you to leave multi-generational wealth.

Implement a well-planned permanent life insurance policy for yourself, your children, or your grandchildren, depositing funds that exceed the amount required to fund the insurance cost to build tax-sheltered cash values and magnify your wealth through compounding asset growth.

If you qualify for life insurance, you can name your children, grandchildren, or a trust as your beneficiary. If you can't, you can designate your children or grandchildren as the life-insured (generational wealth transfer) and establish a trust to finance the life insurance even after your death.

The accumulated death benefit pays out tax-free at your death to whoever the beneficiary is if you are the life insured. If the life insured(s) are your children or grandchildren, the policy ownership gets transferred to your children when you die, who then become the primary policy owner(s). Your grandchildren can be named the contingent policy owners at the death of your children if the grandchildren are the life-insureds.

Deposits can be made in 10, 20, or financed continuously for the rest of the insured's life. If you are the life insured, no contributions are required once the policy pays out the death benefit, even if the policy isn't yet considered "paid-up." If your children or grandchildren are the life insureds, a trust can be set up to finance the policy continuously after you pass away so they need not finance the policy on their own.

A generational wealth transfer policy becomes a vital part of the next generation's financial planning, providing liquidity at times of need or to finance major purchases or investments throughout their life and still have more than enough wealth to leave to the next generation. Empowering you to leave multi-generational wealth.

Choose SmartWealth: Your Trusted Partner In Wealth Transfer

As your reliable ally, we offer trustworthy solutions for seamless wealth transfer planning.

Benefits of Wealth Transfer Using Life Insurance

Wealth transfer using life insurance has many advantages. It not only empowers you to leave more wealth to your heirs but also provides you and your loved ones with financial security and flexibility.

  • Build tax-sheltered wealth through compounding cash value accumulation accessible during your lifetime.  
  • Provides tax-efficient wealth transfer that magnifies your net-estate value through tax-free death benefit payout to your heirs. 
  • Gives you complete control over the policy and wealth while you’re alive (generational policy).
  • Bypass probate and estate fees. The wealth goes directly to the named beneficiaries. 
  • When the generational policy’s ownership transfers to your children or grandchildren, they can access the cash values to finance major purchases or significant life events throughout their lives.
  • Policy ownership transfer is tax-free, facilitating a seamless wealth transfer between generations.
  • Ensure a tax-free death benefit for the beneficiary.  
  • Lock-in insurability for your young and healthy child or grandchild.  
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What Types of Insurance Can You Use?

You can use any permanent insurance, with participating whole life and universal life being the most common. Both allow you to grow cash value tax-sheltered, deferring tax until withdrawal. Universal life offers flexibility in deposit amounts and investments, while participating whole life has set premiums and cash value growth structures.  

Magnify Your Family's Wealth With SmartWealth Life Insurance Wealth Transfer Strategy

Take a proactive step today, and let SmartWealth financial advisors guide you through the process of tax-efficient
wealth transfer using life insurance.

Why Choose Ramon Desiderio and SmartWealth Financial Incorporated as your Wealth Transfer Life Insurance Agents?

  • Extensive Experience 

    With years of experience, our team excels in simplifying life insurance complexities for effective wealth transfer.  

  • Innovative Solutions

    Stay ahead with innovative solutions customized to your evolving needs.

  • In-depth Knowledge of Life Insurance

    Our years of experience allow us to offer expert guidance and comprehensive knowledge for confident wealth transfer decisions. 

  • Exceptional Customer Service 

    SmartWealth Financial Incorporated prioritizes you. Our client-centric approach means we listen, understand your goals, and create solutions that align with your aspirations.  

  • Transparent Communication 

    We believe in clear and open communication. You can expect transparency in every step, from policy details to the intricacies of the wealth transfer process. 

Ready To Transfer Your Wealth Strategically?
Talk To The Experts At SmartWealth

Secure higher inheritance for your children and grandchildren. If you’re considering wealth transfer using life insurance as your
preferred strategy, now is a great time to learn how this strategy can work for you and your next generation.

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