Allan & Mary, Alexandria, Ontario
Both in their late 60s, retired couple Allan and Mary were intent on protecting the legacy they had planned to leave for their four children. Concerned with the tax liability attached to substantial registered savings and secondary properties held, the couple approached Roger for guidance to ensure their legacy would be protected.
Roger met with Allan and Mary and uncovered their desire to provide their family with a guaranteed sum on the passing of the last spouse.
Having identified the tax liability of the significant amount of Registered Savings, Roger proposed employing some of these savings to a tax-free vehicle so that the legacy would be protected.
Roger prepared a ‘joint last to die’ life insurance policy for $500,000 and, employing just $50,400 of the registered savings over a 7 year period, the lump sum pay out was guaranteed free of tax upon the death of the last surviving spouse.
Some years later, the gentleman passed away and shortly afterwards his wife became ill and she too passed.
Due to their forward thinking and Roger’s guidance and help, the $500,000 lump sum was paid to the estate which protected all Allan and Mary’s wishes to have their assets evenly dispersed amongst their four children. Furthermore, over $420,000 was saved to the estate, giving a tax-free return over 8 times the initial investment.
Whilst these cases are real, the names have been changed to protect confidentiality.