A.T. Financial Newsletter
How insurance can help
with succession
As another joyful cottage season comes to a close, now is an ideal time to think about what will happen to this valuable asset when the time comes for the ultimate wind-up. Who will take over the family vacation spot?

If you have more than one child and if the property represents a significant portion of your total assets, you face an estate planning challenge. Owners of a family business, or any valuable asset that isn't easily divided, face a similar challenge.

Here's how life insurance can help you leave the property to the child who wants it and maintain family peace by compensating your other beneficiaries as well.

How it works
Suppose that the bulk of your estate consists of a cottage that you purchased many years ago. Along with real estate values in general, it has appreciated significantly since you purchased it. You have two children, but only one of them is interested in owning the cottage.

You can take out a life insurance policy with a projected payout value equal to what the cottage is likely to be worth in say, 20 or 30 years from now, plus enough to cover any taxes or debts that you will leave behind. Upon your death, the policy proceeds can be used to pay the estate debts, the cottage can go to the child who wants it, and a similar cash value (the remainder of the policy proceeds) can go to your other child.

This strategy is equally effective when the indivisible asset is a business.
Benefits beyond the financial
Using insurance to equalize an estate can provide significant benefits. A family business, for example, is often worth more to someone in the family than it would be if it were sold on the open market. For one thing, if no child has sufficient funds to buy out his siblings' shares, the business may have to be sold off quickly to pay off other estate expenses, possibly at "fire sale" prices.

On the other hand, a business that remains in the family will better benefit from the goodwill that the founders (generally one or both parents) have built up over the years. A business that stays in the family may also generate future employment for other family members for years to come.

A cottage, too, may be worth more if it remains in the family than if it were disposed of and the proceeds divided among successors. As part of an estate sale, the property may need to be sold quickly, possibly at a time when the market is down. In addition, a property that stays in the family can continue to benefit other members and serve as a focal point for family gatherings for years to come.

Last but not least, preparing the disposal of an indivisible asset can drastically reduce your stress in later years.

If you own a vacation property, business, or other indivisible asset, we can show you how insurance can help you keep it in the family and keep family peace as well.
Secure your kids'
future - with
education funding
As fall gets under way, many parents are busy writing cheques for schoolbooks, supplies, activities, and other expenses. Naturally, their thoughts turn to their kids’ future education.

With tax-deferred savings and government contributions, Registered Education Savings Plans (RESPs) are one of the most effective ways to save for a child’s post-secondary studies. But what if your earnings were no longer available to fund contributions?

Eye on the prize
If you really think about it, opening an RESP and arranging to make regular contributions is just the start. The real goal is make sure that your child graduates from the educational institution of his or her choice, with a degree in hand and (hopefully) job prospects ahead.

Life insurance can help to ensure that happens. You can take out a term policy that coincides with your child’s graduation from high school, and be confident that funding will be available.

Meeting your changing needs
Don’t forget, though, that it’s important to revisit your education savings and life insurance needs anytime there is a significant change in your life. For example, if you have another child, you’ll want to adjust both your contributions and your coverage.

If you have children, make an appointment soon. We can help you protect their education, and their future.
For more information,
please contact us at

(647) 833-2782