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Life insurance plays a key role in estate planning for many Canadian families and owners of small businesses. Changes in circumstances can result in the transfer of the policy to another person or business entity. Recent changes in the tax rules governing insurance transfers in combination with Canada Revenue Agency interpretations have made the insurance transfer rules increasingly more complex. A lack of proper understanding of these rules can result in significant tax liabilities from the transfer as well as other adverse financial consequences. The Essential Canadian Guide to Life Insurance Transfers provides advisors and their clients with an in-depth discussion of the policy transfer rules as they apply to a variety of planning situations.
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