The Smith Falconer Team The Lois Smith Team
April 2015 eUpdate
Changes Ahead: Tax Exempt Insurance Policies

  
You'll want to read the article in our Q2 Perspective newsletter if you have existing life insurance or annuities, or are considering adding these to your portfolio. Changes in their tax-exemption status are being considered as outlined on page 4 in the article, titled "Changes Ahead: Tax Exempt Insurance Policies."

The Department of Finance is reviewing the exemption test and suggests changes could be implemented. Generally speaking, the maximum tax-exempt funding room for the same policy offered today will be lowered after 2016. If you need to make changes to an existing policy or you want to maximize the tax efficiency of establishing such a policy, there may be tax-sheltering opportunities available through the funding of a tax-exempt insurance policy purchased prior to 2017.

Reviewing your insurance coverage is particularly timely now. Contact us if you would like our help.

All our newsletters are available on our website along with other helpful resources. We welcome your visits and feedback.

Very best regards,



Smith Falconer Financial Group

CIBC Wood Gundy is a division of CIBC World Markets Inc., a subsidiary of CIBC and a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. Lois Smith and Rodney Falconer are Investment Advisors with CIBC Wood Gundy in Toronto, Ontario. The views of Lois Smith and Rodney Falconer do not necessarily reflect those of CIBC World Markets Inc.

 

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