Fact Finding Guide
This Fact Finding Guide helps you gather the important information you need to show your clients how life insurance
can be used to offset final expenses so their assets won’t be eroded, liquidated or leveraged.
Your client (and spouse if applicable) must sign the Consent for Collection, Use and Disclosure of Personal
Information form (NN1470E), found on Repsource>Forms.
With Estate Preservation, you can help your clients protect the legacy they want
to leave behind.
3
General Information
Client 1
Name: ______________________________________________________________
Sex:
■
Male
■
Female
Date of Birth: ________________________________________________________
Smoking Status:
■
Non-smoker
■
Smoker
Spouse/Common Law Partner
Name: ______________________________________________________________
Sex:
■
Male
■
Female
Date of Birth: ________________________________________________________
Smoking Status:
■
Non-smoker
■
Smoker
Pers onal Tax Information
1
Province of residence: ________________________
2
Marginal tax rate:
______________ %
Tips
1
Your province of residence is required to calculate probate fees.2
Your marginal tax rate is used to determine the capital gains tax liability and the tax on registered assets.Tips
1
At death, your registered savings are included as regular income and are fully taxable on your final tax return. Your registered savings plan can be rolled to a surviving spouse tax-free.2
The current value of your registered savings is used to determine your tax liability today.3
You may have a RRIF if your registered savings are providing you with retirement income.4
It is important to project the value of your RRSP into the future to determine your future tax liability.5
Maximum annual RRSP contribution limits:6
You can make contributions to your RRSP up to age 71.7
You must convert your RRSP to a RRIF or an annuity by December 31st of the year in which you turn age 71.8
It is important to project the value of your RRIF into the future to determine your future tax liability.9
The government requires you to withdraw annual minimum amounts from your RRIF each year. The minimum is based on prescribed rates linked to your age at the beginning of the year.10
If your spouse is younger than you are, you can choose to base the annual RRIF minimum on your spouse’s age. By doing this you will reduce the required RRIF2008
$20,0002009
$21,000Client 1
1
Do you own a registered savings plan?
■
Yes
■
No
2
What is the value of your registered savings? $ _____________
3
What type of registered asset do you own?
■
RRSP
■
RRIF (If RRIF, go to question 8)
4
RRSP rate of return _________________%
5
Future RRSP contributions $__________
6
Contribution period. Years: __________ To Age: ________
7
At what age will you convert your RRSP to a RRIF? ______
8
RRIF rate of return _________________%
9
Do you want to base your retirement income on the RRIF minimum?
■
Yes
■
No
If no, specify level amount: $ ______________
10
Do you want to base RRIF minimum payments on your spouse’s age?
■
Yes
■
No
If yes, enter spouse’s age: ____________
Spouse/Common Law Partner Details
1
Do you own a registered savings plan?
■
Yes
■
No
2
What is the value of your registered savings? $ _____________
3
What type of registered asset do you own?
■
RRSP
■
RRIF (If RRIF, go to question 8)
4
RRSP rate of return _________________%
5
Future RRSP contributions $__________
6
Contribution period. Years: __________ To Age: ________
7
At what age will you convert your RRSP to a RRIF? ______
8
RRIF rate of return _________________%
9
Do you want to base your retirement income on the RRIF minimum?
■
Yes
■
No
If no, specify level amount: $ ______________
10
5
Tips
1
At death, for income tax purposes, you are deemed to have disposed of your capital property at fair market value. This may generate a significant capital gains tax liability for your estate. However, you can roll your capital property to a surviving spouse tax-free.2
One of the most significant costs to your estate is capital gains tax. There are a number of different ways to ensure that sufficient funds are available to pay this tax liability.3
&4
When you dispose of CCPC shares or farm property/shares, a significant capital gain may result.
a. Consider the following question to help determine the fair market value of your shares/farm property. If you sold your shares/farm property today what amount would you get for them?
b. The adjusted cost base (ACB) is used for determining the capital gains tax. If the fair market value of your shares/farm property is in excess of the ACB at the time of disposition, a capital gain may result.
c. Growing shares have a growing tax problem. You need to be aware of this growth to determine your future capital gains tax liability.
d. Shares of a qualified small business corporation or qualified farm or fishing property are eligible for the $750,000 capital gains exemption.
e. An estate freeze is an estate planning technique that typically freezes the value of your shares today and transfers future growth in the value of your corporation to the next generation.
1
Do you own property that you intend to hold until death?
■
Yes
■
No
2
When you die, where will the funds come from to pay for any capital gains
tax that might result from the capital property you own?
■
Cash (Savings)
■
Bank loan
■
Sale of assets
■
Life insurance
■
Other
3
Do you own shares of a Canadian Controlled Private Corporation (CCPC)?
■
Yes
■
No
a.
What is the fair market value of your shares? $ ________________
b.
What is the adjusted cost base of your shares?
$
________________
c.
Is the value of your shares growing?
■
Yes
■
No If yes, at what rate? ________
d.
Do your shares qualify for the $750,000 capital gains exemption?
■
Yes
■
No
If yes, have you used any of your $750,000 capital gains exemption?
■
Yes
■
No If yes, how much? $ ______________
e.
Do you anticipate implementing an “estate freeze“ at a point in the future?
■
Yes
■
No If yes, when? Age: ____ Year: ____
4
Do you own farm/fishing property or shares of a family farm/fishing
corporation?
a.
What is the fair market value of your farm/fishing property/shares?
$ __________________
b.
What is the adjusted cost base of your farm/fishing property/shares?
$ __________________
c.
Is the value of your farm/fishing property/shares growing?
■
Yes
■
No If yes, at what rate? ________
d.
Does your farm/fishing property/shares qualify for the $750,000 capital
gains exemption?
■
Yes
■
No
If yes, have you used any of your $750,000 capital gains exemption?
■
Yes
■
No If yes, how much? $ ______________
e.
Do you anticipate implementing an “estate freeze” at a point in the future?
Tips
5
Examples of other capital property include family cottage, fine art, public company shares and mutual or segregated funds.6
Examples of depreciable capital property include buildings, vehicles, or equipment used in an unincorporated business or as personally owned rental property.7
You may own investments that generate interest income. Examples include guaranteed investment certificates, stripped coupons, bonds and bond funds.5
Do you own other capital property?Asset Name:
Fair Market
Value:
Adjusted
Cost Base:
Growth
Rate:
6
Do you own depreciable capital property?Asset Name:
Fair Market
Value:
Adjusted
Cost Base:
Growth
Rate:
Undepreciated
Capital Cost:
Depreciation
Rate:
7
Do you own interest bearing investments?Asset Name:
Fair Market
Value:
Growth
Rate:
7
Tips
1
Probate, a fee or tax charged for the validation of a will, could add a significant cost to the settlement of your estate.2
Probate fees may be charged based on the property you own at death, including capital property, registered assets, principle residence or a life insurance policy with your estate named as beneficiary.Tips
1
Consider these costs that may impact your estate and plan for them in advance.a. The executor of your estate may incur a number of costs when carrying out the terms of your will, such as appraisal fees to determine the value of certain property.
b. The executor may also incur legal or accounting fees to settle your estate, such as fees charged by a chartered accountant for preparing the final tax return.
c. The cost of burial and funeral arrangements can also be a large cost to your estate.
