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Highlights
LIFE INSURANCE
Adjusted Cost Basis, Life Insurance Policies and the Income
Tax Act
Peter Everett
The adjusted cost basis ("ACB") of an
insurance policy is an important element in determining the taxation of
an insurance policy upon a disposition. The method of calculating the
ACB of an insurance policy is based on a lengthy formula set out in
section 148 of the Income Tax Act. Peter Everett reviews the basic
elements of the ACB definition and the type of policy transactions that
can give rise to a disposition. The author then explores how the ACB of
an insurance policy will be affected by various policy transactions as
well as the form and nature of the policy disposition.
ESTATE PLANNING
Insurance Planning in the Family Law Context
Dianna Flannery
family and succession law legislation governs
support and property rights upon separation, divorce and death. This
legislation as well as related court decisions must be considered in the
structuring of insurance as part of an estate plan. Dianna Flannery
provides an overview of the rights and claims that can be asserted by a
spouse upon marriage breakdown under provincial law. The author then
highlights how life insurance can be used to satisfy support and
property obligations, and minimize the impact such claims will have on
the estate plan of a deceased spouse or former spouse.
LIFE INSURANCE
Selected Issues in Policy-owner Planning for Life Insurance
– Part II
Glenn M. Davis
In more complex planning situations, the proper
structuring of policy ownership can have a significant impact on the
effectiveness of the estate plan. For example, when dealing with a
business owner there may be advantages to having the policy owned
corporately rather than individually. In this second of a two-part
series of articles, Glenn Davis canvasses a variety of topics related to
policy ownership including contingent ownership, shared benefit
arrangements, joint tenancy and protecting against mental incapacity.
PRACTICE NOTES
Collateral Insurance and the Capital Dividend Account
Kevin Wark
This is a new feature designed to provide a short
analysis of recent Canada Revenue Agency ("CRA") technical
interpretations, court decisions and legislative changes that can impact
plans involving life insurance. In this issue: a recent CRA technical
interpretation confirms that a private corporation is entitled to a
credit to its capital dividend account for life insurance proceeds even
though a portion of the premium has been deducted; and the Department of
Finance releases new draft legislation which modifies the trust
affiliation rules announced in the March 2004 federal budget.
PRACTICE NOTES
Changes to Affiliation Rules and Estates
Kevin Wark
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Board
Kevin Wark
Editor-in-Chief
PPI Financial Group
John Askin
The Wealth Strategy Group
Ted Ballantyne
Conference for Advanced Life Underwriting
Joel T. Cuperfain
Manulife Financial
Philip Friedlan
Friedlan Law Office
Greg Kaiser
London Life and Great-West Life
Florence Marino
Manulife Financial
Wayne G. Miller
Sun Life of Canada
Glenn R. Stephens
PPI Financial Group |
