FAQ

FAQ provides short answers to common advisor questions asked of the TREPS team. The content is current and updated to reflect the most up-to-date information. Updated dates are listed on each card below.

Could my client get a T5 after paying the maximum premium shown on their statement?

Be careful with large deposits to inforce policies. Money that fits in to an exempt life insurance policy today may not be able to stay in that policy for the lifetime of the client. Find out more.

FAQ

When does creditor protection apply to life insurance?

Creditor protection

Does corporate-owned life insurance affect claiming the capital gains exemption?

Corporate-owned life insurance

What are the tax consequences of transfers of life insurance to a spouse?

Transfers

Are premiums a corporation pays for personal insurance a taxable benefit?

Technical tax points

Will amending a buy-sell agreement impact stop-loss grandfathering?

Stop loss rules

Are life insurance premiums tax deductible?

Technical tax points

How does corporate-owned life insurance affect share valuation on the death of a shareholder?

Corporate-owned life insurance

Where there is no buy-sell agreement, can there be stop-loss grandfathering?”

Stop loss rules

How is the value of corporate-owned life insurance determined?

Corporate-owned life insurance

What is refundable dividend tax on hand?

Technical tax points

How do partners divide premiums for life insurance owned by a partnership?

Partnerships

What are the tax consequences of a critical illness rider on a life insurance policy?

Living benefits

What is a reasonable split of premiums under a split-dollar arrangement?

Split dollar arrangement

What are the tax issues for the LivingCare benefit when the owner isn’t the insured person?

Living benefits

How do stop-loss rules affect estate values for corporate concepts?

Corporate-owned life insurance

What is the impact of post-mortem planning on net estate values shown in corporate concepts?

Corporate-owned life insurance

Can gifting life insurance or its proceeds result in a charitable receipt?

Charitable giving

What happens when corporate-owned life insurance transfers to an employee?

Corporate-owned life insurance

How can Canadian life insurance affect the U.S. estate tax paid by a Canadian resident who is not a U.S. citizen?

US cross border issues

What happens when a corporation is dissolved and corporate-owned life insurance is left behind?

Corporate-owned life insurance

Why do I need a shareholder agreement?

Buy-Sell

What happens when a life insurance owner / insured and beneficiary die simultaneously?

Beneficiary designations

How do I donate a newly-issued life insurance policy to a charity and get a tax receipt?

Charitable giving

What happens when a corporation dissolves and life insurance is transferred to the shareholder?

Corporate-owned life insurance

Am I subject to tax if I withdraw some of the CSV from my policy?

Life insurance taxation

Can withholding tax be avoided when distributing CDA to non-residents?

Capital dividend account

What happens when corporate-owned life insurance transfers to an individual shareholder?

Transfers

What happens when corporate-owned life insurance transfers to a corporate shareholder?

April 2022

Transfers

What happens when shareholder-owned life insurance transfers to a corporation?

Transfers

What happens when life insurance transfers between related corporations?

Transfers

What are the investment powers of a trustee in Ontario in the RCA context?

FAQ

How are executor's fees determined?

FAQ

What happens when Canadian life insurance beneficiaries are U.S. residents?

US cross border issues

Does an insurance trust created in a Will trigger probate fees?

Trusts

What is a Henson Trust?

Trusts

Who should be the beneficiary of corporate-owned life insurance?

Beneficiary designations

What happens when a Canadian life insurance owner/insured moves to the U.S.?

Emigration and immigration

What happens when a Canadian citizen with a U.S. policy returns to Canada?

Emigration and immigration

How does life insurance fit into power of attorney planning?

Powers of attorney

Do I have to submit the beneficiary designation form when creating an insurance trust in a will or trust agreement?

Beneficiary designations

What happens when joint owners of a life insurance policy die simultaneously?

Ownership of insurance

What problems can be avoided with a successor owner designation?

Estate planning

Can a competent joint owner change beneficiaries if the other owner becomes mentally incapacitated?

Beneficiary designations

Does a departing shareholder/employee have rights to a corporate owned life insurance policy on them?

Corporate-owned life insurance

Does a life insurance death benefit have to be paid as a lump sum?

Estate planning

What are the tax consequences when a corporation receives a death benefit?

May 2022

Capital dividend account

What happens to capital dividend accounts when one company is owner and another is beneficiary?

Capital dividend account

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