Navigating Tax Deductions for Life Insurance Premiums

Considering that the proceeds of a life insurance policy are received tax-free upon the death of the life insured, it is not surprising that the premiums for the policy are not tax deductible. There are two circumstances, however, where premiums would be deductible for income tax purposes...

Understanding Early CPP: When and Why to Consider It

New Rules governing the Canada Pension Plan took full effect in 2016. Under these rules, the earliest you can take your CPP Pension is age 60, the latest is 70. The standard question regarding CPP remains the same - should I take it early or wait?

Critical Illness – Are You Protected?

Medical practitioners today will confirm what Dr. Barnard observed – the lower your stress levels, the better the chances for your recovery. When one is ill with a serious illness, having one less thing to deal with, such as financial worry, can only be beneficial.

Strategies for Multi-Generational Planning

The Sandwich Generation, coined by Dorothy Miller in 1981, describes adults caring for both aging parents and their own children. This dual responsibility is emotionally and financially draining. Effective financial planning is crucial, involving open discussions about family resources, life insurance needs analysis, disability and critical illness coverage, long-term care insurance, and drafting a living will. Addressing these issues can alleviate stress and ensure financial security for all generations.

Preparing Your Heirs for Wealth

If you think your heirs are not quite old enough or prepared enough to discuss the wealth they will inherit on your death, you’re not alone. Unfortunately, this way of thinking can leave your beneficiaries in a decision-making vacuum: an unnecessary predicament which can be avoided by facing your own mortality and creating a plan. Avoiding the subject of your own mortality can also be an extremely costly to those you leave behind.

Impact of Higher Capital Gains Inclusion Rate on Financial & Estate Planning

One change proposed in the April 16, 2024 Federal Budget is raising the inclusion rate on capital gains from 50% to 66.7%. For individual taxpayers, the initial $250,000 of capital gains remains taxed at the 50% inclusion rate. However, for corporations and trusts, the increased inclusion rate applies to all capital gains. These adjustments are slated to come into effect starting June 25, 2024. What does this mean for individual taxpayers?