Title:
Save taxes with the RRSP Conserver
Author:
Ivon T. Hughes
Article:
Most
Canadian investors are familiar with Registered Retirement Savings Programs,
RRSPs for short. Your contributions are tax-deductible, the funds accumulate
without having to pay tax and, on death, you can transfer the money tax-free
to your surviving spouse. Every retirement plan should take full advantage
of the fully deductible RRSP contributions you can make.
However,
have you considered what happens when your surviving spouse dies? Children
or grandchildren who would normally be heir to any funds remaining in RRSPs
or Registered Retirement Income Fund (RRIFs) - the income payout version
of a RRSP - stand to lose up to half of these funds in taxes.
The
RRSP/RRIF Conserver protects your heirs for the remaining funds in your
RRSP or RRIF when you and your spouse die. The benefit of this plan is that
it will pay the taxes and the full value of your remaining RRSPs or RRIFs
will pass intact to your heirs. The proceeds at death are paid tax-free,
so it is an ideal vehicle to protect your heirs from this type of tax.
We
want to help you save tax! Contact us for more information about the RRSP
Conserver or run your own projection at our website to illustrate how this
plan can be an excellent compliment to your RRSP or RRIF.
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