What is legacy planning?
It’s deciding today how you want what you’ve built to be passed on: to whom, when and how, with as little tax and paperwork as possible. It includes your insurance, your registered accounts, your home, your business and documents such as your will and powers of attorney.
Why it matters for your family
- So your loved ones have money available when they need it most, without selling assets in a hurry.
- So the mortgage, debts and final expenses don’t fall on your family.
- So each child receives what you want them to receive, in a balanced way.
- In many cases, insurance and some accounts with a named beneficiary can be paid directly to beneficiaries, outside the estate (rules vary by province, especially in Quebec).
Carolina’s financial analysis
As a Financial Security Advisor, Carolina always starts with a financial needs analysis: an organized review of your situation before talking about any product. For planning your legacy, the analysis follows these steps:
- A free first conversation: your goals, your family, your business and your concerns.
- The full picture: income, expenses, debt, savings, registered accounts and the insurance you already have.
- Needs analysis: protection, retirement, housing, your children’s education and legacy.
- Options explained with products from several companies (see partners), so you can compare calmly.
- Putting it in place: opening accounts and applications, step by step and in writing.
- Regular reviews: your plan adjusts when your life changes.
Education to decide with confidence
Planning works when you understand every decision. That’s why Carolina explains before she recommends: in your language, with everyday examples, no unnecessary jargon and no pressure. You decide at your own pace, and every proposal is in writing so you can review it at home or with your family.
Why it matters for your business
A business without a succession plan is exposed if the owner or a partner is missing. Life insurance can fund the purchase of shares between partners (criss-cross insurance), protect the company from the loss of a key person and, if the policy is corporate-owned, pass most of the benefit to shareholders tax-free through the CDA.
Taxes at death
According to the CRA’s T4011 guide, at death a person is considered to have sold their capital property at fair market value, which can create taxable capital gains (for example, on a property that isn’t your principal residence or on investments). In addition, the balance of an RRSP or RRIF is added to the final year’s income unless it passes to a spouse or common-law partner. Well-calculated life insurance can cover those taxes so your family keeps the assets.
The value of insurance in your legacy
| Type | How long | What it’s for | Keep in mind |
|---|---|---|---|
| Term | A set period (10, 20, 30 years or to a certain age) | Mortgage, young children, income replacement | Low cost at first; rises at renewal; no cash value |
| Permanent (universal life, T100) | For life | Taxes at death, inheritance, lifelong needs | Higher premium; universal life depends on returns |
| Whole life | For life | Legacy, cash value and, in the participating version, dividends | Long-term commitment; dividends can vary |
Read more about term insurance, permanent insurance and the Infinite Banking strategy with participating whole life.
Companies Carolina can present to you
As a Financial Security Advisor, Carolina compares options from several insurers, including Manulife, iA Financial Group, ivari, Equitable, Canada Protection Plan (Foresters Financial), Empire Life and Beneva, depending on your province and profile. Meet each one in Partners.
Will, powers of attorney and coordination
Your legacy is completed with an up-to-date will and powers of attorney, prepared by a notary or lawyer. Carolina coordinates with them and with your accountant so your insurance, beneficiaries and accounts line up with what you want.