How to avoid significant tax hit on your estate when you die?

(source: Canada's Personal Financie Magazine)

One option is to use a self-directed universal life insurance policy for a significant tax benefit. A universal policy lets you make an additional payment, above and beyond your term premium, into a separate account inside the policy. These funds can be invested in a wide range of options including mutual funds. It all grows tax deferred inside the policy and does not need to be withdrawn at age 69 like assets in an RRSP.

There is another advantage of a universal life policy that distinguishes it from RRSP or RRIF. Upon the death of a policyholder, Section 148 of the Income Tax Act allows for all contributions and accumulated capital gains to be withdrawn from the investment account exempt from probate and capital gains tax. This is why many call it the "investment alternative" and the last great shelter for Canadians allowing even retired middle class people the chance to build a multimillion dollar tax free estate. Click ahead to read more about estate planning in Toronto and surrounding greater Toronto areas.

If you need money later on, you can borrow out a substantial amount of your sheltered gains on a tax free basis and you can even capitalize the interest on the borrowing with the insurance company paying off the lender on your death. You can receive payments as a monthly cash flow - essentially a personal pension plan if you desire - tax free, of course.

Without question, universal life insurance remains the last great tax shelter for Canadians. It can also pay your taxes and "bullet proof" your estate. Nearly 75% of all applicants between age 60 and 80 were approved for coverage in the past for this tax advantage investment alternative. Click ahead to read more on Investment Planners in Toronto or financial planners Toronto.