Anna Feng - Sun Life Advisor

Your account's value at death is typically included as income on the final tax return, which can mean a significant tax bill depending on the situation. Let’s talk about how to use your RRSP more tax-efficiently.

What happens to your RRSP when you pass away? It's something most people don’t generally think about until they're helping a parent settle an estate or updating their own plans.

The short version: Your account's value at death is typically included as income on the final tax return, which can mean a significant tax bill depending on the situation. The estate usually handles the tax, not the beneficiary receiving the funds. But you may be able to defer immediate taxation under certain situations.

How the RRSP is handled depends on who receives it.

If you designate a spouse or common-law partner as beneficiary, they can transfer the funds to their RRSP without immediate taxation.

If you designate someone else, the funds are typically paid directly to them. In some cases, like with financially dependent children or grandchildren, tax deferral options may be available.
When you designate a beneficiary on your RRSP, funds go directly to the beneficiary, avoiding probate fees and legal delays.

Whatever your situation looks like, you're not doing it on your own. We’re here to help you navigate it. Read the article for detailed information: https://ow.ly/rHqv50Z9qWy

*Note for Québec residents: You can designate beneficiaries through your Will. You can also designate them on the contract, if your RRSP is a type of insurance contract (like a segregated fund contract, insurance GICs, or accumulation annuities) Planning ahead can make things easier for the people you care about. Leaving clear instructions means less guesswork for your loved ones during an already difficult time.

Plan ahead for your retirement, let’s talk!

Retirement is a moment in time where you can focus on what fills your cup.

Whether that means creating, exploring, travelling, or simply enjoying life at your own pace, those are your moments to define. RRSPs can help build the financial foundation that makes those moments possible.

Learn how RRSPs can support the retirement you’re planning for: https://ow.ly/e4vO50YylIt

Let us know in the comments what your retirement passion is (or is going to be!).

Are your family and assets well protected?

Term life or permanent life? Whole, universal, or perhaps participating?

You may recognize the terms but still wonder how they actually work. You’re not alone.

Term life insurance offers coverage for a set period of time. It’s often used for specific needs, like a mortgage, a business, or income protection while kids are growing up.

Permanent life insurance lasts a lifetime and can build cash value over time. That cash value can be accessed later on, depending on the policy. It offers 3 main options:

☀️ Whole life, which offers predictable premiums and steady cash value growth.

☀️ Universal life, which provides more flexibility and includes investment options.

☀️ Participating life, which builds cash value and may pay dividends.

Some people choose one type. Others combine options to support different goals over time.

Read the article to explore all four types: https://ow.ly/ycax50YGvUC