Build, Preserve & Transfer Wealth Favretto Financial Services Inc.

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Basic Insurance Terminology Term Permanent Whole Universal Term to 100

Difference What you have Difference Now Retirement Life Expectancy What you want Build, Preserve & Transfer

Second marriage for both Mr. Jones has a $3 million dollar RRIF Ultimately his Grandchildren will receive the RRIF balance. Mrs. Jones will receive the income while she is alive. Mr. Jones has 2 children and both financially independent. Solution: 1.Mrs. Jones added as successor annuitant on the RRIF accounts. 2.The two children of Mr. Jones are added as irrevocable beneficiaries. (essentially trustees for the grandchildren) 3.Joint second to die Life Insurance Policy on Mr. and Mrs. Jones equal to the estimated estate shrinkage of 56%. 4.Mrs. Jones receives income for her lifetime. Grandchildren receive the balance of the RRIF. Insurance company pays the shrinkage cost. Case Study: The Jones

Estate value at Life Expectancy is $1.4 million and includes a cottage. ($250,000) Two children – Daughter wants the cottage but needs money as well; son is of sufficient means and cottage isn’t an issue. Mr. and Mrs. Smith want to be fair to each child. Will revised to leave cottage to the daughter, equal amount of cash to the son and the rest of the estate split equally after settlement on second death. Projections indicate that the estate shrinkage is just over 10%. Solution: Purchased a joint, second to die life insurance policy equal to estate shrinkage costs. Funds moved from the invest portfolio to pay a one time lump sum premium. Result: Everybody happy! Case Study: The Smiths

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PERSONAL Assets BUSINESS ASSETS LIFE INSURANCE GOVERNMENT PROGRAMS YOUR ESTATE 1.What you want? 2.What you have? 3.The difference? 4.How is this funded? Our Family Estate Make Up Your Family

PERSONAL ASSETS BUSINESS ASSETS LIFE INSURANCE GOVERNMENT PROGRAMS YOUR ESTATE Income Taxes Investment Income Taxes Probate Fees Appraisal Fees Legal & Accounting Fees Administrative Expenses Debts Medical Costs Funeral Costs Estate Complications Our Family Estate Make Up Your Family Studies show the siphon draws off 10% - 60% of our total estate

PERSONAL ASSETS BUSINESS ASSETS LIFE INSURANCE GOVERNMENT PROGRAMS A Word About Estate Planning Tax Family The goal of effective estate planning is to distribute one’s assets according to your wishes, and with the least amount of effort, or tax, both immediately following death and for as long as possible. Charity

Where Will It All End Up? ESTATE Charity Taxman YouFamily

Your Options… Same More Less You Family Taxman Charity

Who wants to pay more tax than necessary? What can you do about this? How Much Tax Will You Pay?

Are just meant for each other, because... Estate Planning is organizing ones affairs, in a tax effective manner, for their final distribution. Life insurance is a tax effective final distribution product. Estate Planning & Life Insurance