Running a family business has challenges that include head and heart issues which aren’t typically present in other businesses. However, the proverb about shirtsleeves to shirtsleeves – that family enterprises often fail by the third generation – does not need to be a reality for these families. Family enterprises can improve their chances of achieving intergenerational continuity by building their knowledge and skills – and by working with advisors who understand their unique needs and goals.

Continue reading “Help Family Enterprise Clients Avoid ‘Shirtsleeves to Shirtsleeves’” →

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Empower the Enterprising Strength of your Family

The gifting of life insurance to registered charities has always been a popular method for individuals to fulfill their philanthropic goals. For some of your clients, this may be worth considering when it comes to a charity that is near and dear to their heart.

There are two basic options:

• donate a policy while the client is alive or
• make the registered charity a beneficiary of the policy

Continue reading “How Life Insurance can Help your Client’s Favourite Charity” →

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How your Life Insurance can Help your Favourite Charity

Did you know that over 50% of Canadians do not have a will?*  Why? Some don’t know how to get started while others believe they can’t afford it.

Do your clients have a will in place? Is it up-to-date? Help your clients understand the importance of having a will. A will is an important part of their overall plan and without one, assets would be distributed as per provincial intestate legislation. This process takes time, can increase costs, and probably will not match their wishes for their estate. A will is needed in most cases – anyone with assets and/or wishing to give direction for the distribution of assets upon death.

Continue reading “Coordinating the Completion of Your Client’s Will” →

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Where there’s a will, it will be your way

Assisting your clients with planning for the transition of wealth to their children and grandchildren doesn’t have to be a daunting task. Start the conversations with your clients now so they begin to understand the impact of tax on their estate assets.

Do your clients understand the tax implications that occur upon death? There would be a deemed disposition of all their assets at fair market value which could result in tax (excludes the principle residence). There is, however, an exception for assets rolled to a spouse.

Continue reading “Increase Estate Assets Through a Beneficiary Designation” →

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Sharing Your Wealth with the Next Generation

In family succession plans, it can be difficult to transfer the shares of the family business to the next generation while still taking advantage of the capital gains exemption. This difficulty arises due to an anti-avoidance provision in the Income Tax Act. Life insurance can be used to accomplish the transfer on a tax efficient basis.

Bill and Joan, a married couple, are sole shareholders of XYZ Corporation. They want to retire and sell some of the company shares to their son, Bob, without financially burdening the business. It is difficult, however, for Bob to obtain the funds personally in order to complete the purchase of the shares from his parents.

Continue reading “Case Study: Using the Capital Gains Exemption in a Family Succession Plan” →

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Is your family business gaining from the capital gains exemption?

It is no secret that there are benefits to funding your client’s shareholders’ agreement with life insurance.

It is less well known, however, that a significant number of agreements are drafted incorrectly, being either out of date or inadequate to deal with insured buyouts. The following are 5 common errors and omissions your clients should avoid in their shareholders’ agreement.

Continue reading “5 Common Mistakes to Avoid When Drafting Shareholders’ Agreements” →

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5 common mistakes to avoid when drafting a shareholders’ agreement

Applets are used by Advisors in PPI’s Toolkit Direct (Advisor login required) to create professional, straightforward presentations for clients.

The Income Replacement applet (Advisor login required) can be used to answer the daunting question, “What would you do if you could no longer work due to disability or sickness?” While this may not be a question that you want to ask your clients out-right, it is something very important for them to consider. Continue reading “Applet ABCs: Income Replacement” →

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Insuring your Most Valuable Asset

Our lives are arguably the most valuable “possessions” we own, and because we are quick to insure our cars and our homes, insuring our lives should be a no-brainer! This being said, instances arise in which your client’s current life insurance policy may no longer be required.

Continue reading “Donate, Don’t Surrender: When a client no longer wants their life insurance policy” →

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Donate, Don’t Surrender: What to do when you no longer need your current life insurance policy

Applets are used by Advisors in PPI Toolkit Direct to create professional, straightforward presentations for clients.

Is your client considering critical illness insurance but is not completely convinced that it is necessary? The Bridging Risk applet (Advisor login required) showcases the need for critical illness insurance by presenting five risks and the likelihood that each will occur in your client’s lifetime. As each risk is mentioned, its likelihood increases until you and your client are left with “Critical Illness: a one in three chance.” It makes sense to cover the greatest risk to both income and lifestyle, so if your client is insuring their care and their home, they still have the greatest risk exposed.

Continue reading “Applet ABCs: Bridging Risk with Critical Illness Insurance” →

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A critical step towards fighting critical illness

As of December 2022, there were 1.22 million employer businesses in Canada*. Guess how many were small businesses.

Whatever your guess, we recommend you make it a little higher because, as of 2022, more than 98% of Canadian businesses employed less than 100 employees*. There are over 1,190,000 small businesses in Canada that, notably, contribute slightly more than 35% to Canada’s GDP*. Additionally, as of 2022, small businesses employed 8.2 million individuals in Canada or 67.7% of the total private labour force*. They may not be multimillion dollar corporations, but their worth should not be underestimated. Continue reading “Why Life Insurance Advisors Are Making It Their Business to Investigate the Business Insurance Market” →

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Why Small Businesses are Making it their Business to Investigate Life Insurance