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*Providedthatpremiums foryourBasicLife Insuranceplanarenotbeingwaivedduetoadisability.
TheBasicLife InsuranceandTerm100Life InsuranceplansareunderwrittenbyTheManufacturers
Life InsuranceCompany(ManulifeFinancial).
CDSPImakes iteasy fordentists toconvert
their term life insurance intopermanent
lifecoverage.Dentistswith theBasicLife
Insuranceplan throughCDSPIwhoareage
55orundercanconvert* thatcoverage
to theTerm100Life Insuranceplan (up
toamaximumof$1million)—without
having toundergomedicalunderwriting.
Fordentistswhowillhaveaneed for
permanent lifecoverage, it’sadvisable to
considermaking thatconversionbyage
55 for two important reasons. First, ifyou
develophealth issuesafterage55, you
couldbedeniedcoverage.Second, the
costof termcoverageatolderagescan
besignificantlyhigher than thecostof
permanentcoverage.
ina trust createdduringyour lifetime
arenot included inyour estatebecause
they technicallyno longer belong to
you. Consequently, your estatewill not
be leviedwithadditional taxesor probate
costs related to thevalueof theseassets.
However, taxeswill bepayableby the
trust so trust arrangementsneed tobe
plannedcarefully. It’s thereforeadvisable
toconsult aqualified taxand legal
professionalwhen settingupa trust. Then,
once the trust hasbeenestablished,we
canhelpyouchooseCDSPI investment
fundswithin the trust that areappropriate
for your needs.
Savingon taxandestatecosts aren’t the
only reasons youmaywant to lookat
settingupa trust, sincedifferent types
of trusts can servedifferent purposes.
For instance, I recentlyhadanestate
planningconsultationwithadentist
whowasmarriedandhad twochildren
in their early twenties. Thisdentist had
significant assets andwas concerned that
if heandhiswifepassedat the same time,
his childrenwouldnot properlymanage
their inheritance. Oneof theoptionswe
discussedwas settingupa “25, 35, 40”
testamentary trust. The trustwouldbe
structured so that eachchildwould
receive25%of their inheritanceat age25,
35%at age35and the remaining40%at
age40.
ConsiderDelegatingYour
Executor’sDuties
Manydentistshave intricateestates
whichcanbecomplicatedand time-
consuming toadminister. If younamea
friendor familymember as theexecutor
of your estate, that personmaynot
have theexpertiseor time toproperly
carryout that responsibility. Therefore,
youmaywant toconsider appointinga
“corporateexecutor” as theco-executor
of your estate—aprofessional firmwith
experience inhandling thoseduties.
Another option toconsider is talking to
your executor about hiringan “agent
for executor.”Anagent for executor
is aprofessionalwhowill assist your
executor (e.g., a friendor familymember)
in smoothlyadministeringyour estate.
Note that hiringoneof thesefirms/
professionals comeswithapotentially
significant cost—in somecasesup to
5%of thevalueof your estate.
a
Did youknow...
For insightsonplanningyour
insurancecoverageas youprepare
to retire, visit
