Looking for efficient ways to transfer wealth to the next generation? Learn how an insurance plan can help you provide a larger legacy for those you care about most.
Gary and Maria have had a long and successful career, and worked hard along the way to support their loved ones. Now that they are approaching retirement, they are starting to think about their legacy. Gary and Maria are already covered with a life insurance plan and are looking for additional ways to transfer the family’s excess wealth as efficiently as possible.
They talked to their Advisor and Estate Planning Specialist at RBC Wealth Management Financial Services Inc. about how they can support the next generation of their family. They were told about the Intergenerational Wealth Transfer Strategy, a solution that can help provide financial security and flexibility for their family.
With this strategy, Gary and Maria could transfer money to their granddaughter for her to use in the future, and still be in control of the policy and funds during their lifetime. To get started, Gary and Maria would apply for, fund and own a permanent, tax-exempt life insurance policy on their granddaughter’s life. Once she is of legal age, they can transfer the policy ownership to her. Then their granddaughter can gain access to the policy value, either through cash surrender value or through tax-free collateral loans. But alternatively, their granddaughter can also choose to keep the insurance policy, insuring her coverage for the future.
Speak with an RBC life-licensed advisor or an Estate Planning Specialist today to learn more about the Intergenerational Wealth Transfer Strategy.
The comments contained in this video are general in nature, and do not constitute legal, investment, trust, estate, accounting or tax advice. Insurance products offered through RBC Wealth Management Financial Services Inc. (“RBC WMFS”), a subsidiary of RBC Dominion Securities Inc. (RBC DS”). * RBC WMFS is licensed as a financial services firm in the province of Quebec. When providing insurance products in all provinces except Quebec, Investment Advisors are acting as Insurance Representatives of RBC WMFS. In Quebec, Investment Advisors and Estate Planning Specialists are acting as Financial Security Advisors of RBC WMFS. RBC DS, RBC WMFS and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC DS and RBC WMFS are member companies of RBC Wealth Management, a business segment of Royal Bank of Canada ® / ™ Trademark(s) of Royal Bank of Canada. Used under licence. © 2023 RBC Wealth Management Financial Services Inc. All rights reserved.