Other Problems Resolved with Annuities

PROTECTING TRANSFERRED WEALTH.

An 80 year old gentleman from Toronto wished to give One Million Dollars to each of his 21 adult Grandchildren.

He did not want to do this upon his death in his Will.

  • He wanted them to enjoy some of the benefit NOW, not 10 years from now.
  • He did not want them paying the fees and taxes charged on Estates.
  • He did not want the recipients revealed when The Estate is made public.
  • (Every Estate Settlement becomes a public document)

He was concerned about possible mismanagement of the money by the Grandchild, or their current, or future; spouses and friends.

We helped him arrange 21 NON-COMMUTABLE Lifetime Annuities using One Million Dollars each. The first 30 years of payments on each annuity is guaranteed even if that Grandchild has died prior. We named individual Beneficiaries on each annuity (NOT their Estate) and the right for each of them to change the named Beneficiaries in the future as needed.

PROTECTION FOR YOUR OLDER YEARS.

Average Life Expectancy in Canada is increasing rapidly; approximately one more month each year that passes now. If the historical statistics indicate you have 40 more years to live; you should add at least 40 more months to that. We have always encouraged family and friends to invest about 20 percent of their retirement funds in LIFETIME annuities. Many of our clients, starting decades ago; either lost or outlived their other savings, and only survived on the Lifetime Annuity income we had put in place for them.

PRESCRIBED LIFETIME ANNUITIES are very attractive under CRA Rules at this time. Once you live past their outdated historical statistics, a large portion of the interest paid to you will not be taxed.

PROTECTING A CHARITABLE GIFT.

A family in Kingston wanted to give $500,000 to a local charity NOW, while they had high income to take credits against, rather than later, upon death: when they may not have had enough recent income to fully use the credits.

They had some concern about the Charity managing the money effectively. They also wanted to be remembered, and acknowledged, for years to come.

We helped them purchase a NON-COMMUTABLE 25 year Fixed Term Annuity, and donate it to the Charity in the same year.

They received their full Credit (which they could spread over 5 years of Tax Returns).

The Charity agreed to acknowledge them as the annuity paid; in each of the 25 years.

TAX-FREE TRANSFER OF REGISTERED SAVINGS TO DISABLED CHILDREN AND GRANDCHILDREN.

Canada Revenue Agency allows the Tax-Free transfer of remaining Registered Savings to disabled children and grandchildren of any age; upon death of the parent or a grandparent.

The arrangements should be put in place and properly documented PRIOR to the death of the parent or grandparent. This requires using a lawyer specializing in the area.

The funds go into a LIFETIME BENEFIT TRUST; which must purchase a QUALIFYING TRUST ANNUITY. If there is a period of guarantee of payments even if that child has died: CRA rules that those payments must go the The Estate of the deceased child.

This is unfortunate, but not a grave concern to the Families making this arrangement.

We have helped lawyers convince scores of families to make these arrangements.

  • Transfer upon the death of the second of two parents, or grandparents.
  • Transfer upon the death of each, or one, parent, or grandparent.