Hello;
Estate planning encompasses many things such as providing for loved ones, mitigating or avoiding probate, minimizing taxes, providing for the orderly distribution of assets, protecting assets and planning for incapacity. The utilization of a segregated fund in one's estate plan allows your beneficiaries to receive your money without having those funds flow through your estate. That means the money in your policy won't be reduced by taxes and fees associated with settling an estate.
What is a Segregated fund?
It is similar to a mutual fund in a sense that there's a pooling of investments. But unlike mutual funds, a segregated fund policy includes guarantees that can protect your original investments.
What are the benefits of a Segregated Fund?
- A death benefit guarantee - this means your named beneficiary will receive either the market value of your investments or the guaranteed amount, whichever is higher at the time of your death. This makes segregated funds a wise choice for individuals worried about their assets will pass on to their beneficiaries
- Ability to name a beneficiary and avoid your estate
- Save on estate administration and probate fees
- Quick proceeds upon passing (liquidity to beneficiaries)
- Private transfer of wealth (not public record)
- Potential protection from estate creditors at death
- Easier than changing your will
- Avoid will challenges and estate litigation
- Ease the burden to the executor
- A great tool for a gift
- Contract flexibility and planning strategies
- Payment to heirs can be made in the form of an annuity (good alternative to a trust)
- Avoid joint ownership pitfalls
Segregated funds can form a valuable part of an estate plan. Please let us know if you require further information on how we can help you take advantage of market growth, protect your wealth and pass it on to the next generation.
If you require further information, please feel free to contact us.
Sincerely,
Mike Busby (19-Nov-2020)
THE COMMENTS CONTAINED HEREIN ARE A GENERAL DISCUSSION OF CERTAIN ISSUES INTENDED AS GENERAL INFORMATION ONLY AND SHOULD NOT BE RELIED UPON AS TAX OR LEGAL ADVICE. PLEASE OBTAIN INDEPENDENT PROFESSIONAL ADVICE, IN THE CONTEXT OF YOUR PARTICULAR CIRCUMSTANCES. THIS ARTICLE WAS WRITTEN, DESIGNED AND PRODUCED BY MIKE BUSBY FOR THE BENEFIT OF MIKE BUSBY WHO IS A FINANCIAL ADVISOR FOR BRANDON LINDSAY INSURANCE AGENCIES, A TRADE NAME REGISTERED WITH FUNDEX INVESTMENTS INC., AND DOES NOT NECESSARILY REFLECT THE OPINION OF FUNDEX. THE INFORMATION CONTAINED IN THIS ARTICLE COMES FROM SOURCES WE BELIEVE RELIABLE, BUT WE CANNOT GUARANTEE ITS ACCURACY OR RELIABILITY. THE OPINIONS EXPRESSED ARE BASED ON AN ANALYSIS AND INTREPTATION DATING FROM THE DATE OF PUBLICATION AND ARE SUBJECT TO CHANGE WITHOUT NOTICE. FURTHERMORE, THEY DO NOT CONSTITUTE AN OFFER OR SOLICITATION TO BUY OR SELL SECURITIES. MUTUAL FUNDS PROVIDED THROUGH FUNDEX INVESTMENTS INC.
