Estate Preservation - Software tips and more

Did you know that in addition to being a financial planning tool, Manulife’s Estate Preservation concept software also has the following features and functionality?

Provides functionality to create a standalone RRIF Insurance presentation(see Conceptually Speaking article “RRSP/RRIF Insurance”)

Provides a cost comparison of other funding methods to life insurance

Provides functionality to create increasing and level death benefit insurance solutions

Concept is linked to all of Manulife’s permanent insurance products

Can include probate fees and estate costs in the analysis (see Conceptually Speaking article “Preserving your client’s estate with Estate Preservation”)

Can include up to 20 different assets in the “Capital Gains and Interest” section

Provides functionality to reflect an “estate freeze” in the analysis

Maximum RRSP contribution limit for 2018 - $26,230

Lifetime Capital Gain Exemption for 2018 - $848,252 (see assumptions below)

Assumptions and other helpful information

For illustration purposes, consider using a present value (PV) rate in the 2% - 3% range and in the 2% range for the capital gains exemption.

When including the bank loan funding option in the cost comparison, the loan is assumed to be taken at life expectancy. Current loan rates may not accurately reflect future bank loan rates.

It is recommended that the premium payment period for the life insurance funding method match the deposit period for the taxable investment funding method.

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If the life insured is rated, there is functionality in the software to reduce the life expectancy to a maximum of 5 years. Contact your Actuarial Consultant to determine the impact a rating has on life expectancy.

To help you secure all the information needed to provide meaningful analysis, you can refer to the comprehensive Estate Preservation Fact Finding Guide(MK1682) complete with “useful Tips”.

Date: April 2018