Unlock new possibilities with the updated Estate Preserver Plan concept

As an advisor, you play a crucial role in helping your clients navigate the complexities of estate planning and wealth transfer. The Estate Preserver Plan is designed to help you by offering a comprehensive solution to manage estate taxes and preserve wealth for future generations. This article will provide an overview of the concept, its key features, and how you can use it to benefit your clients.

What is the Estate Preserver Plan?

The Estate Preserver Plan is aimed at enhancing your clients' estate planning by offering two main options: the universal life option and the newly added whole life option. Both are available in the “insurance concepts” module of the BMO Insurance illustration software (The Wave). The plan is designed to provide a robust solution that calculates capital gains liabilities and manages estate planning effectively.

Key features and options: This new module means you can illustrate scenarios using whole life insurance, providing more flexibility and choices for clients. A universal life option is also available.

Charitable donation at death: The plan includes a section for charitable donations at death, allowing clients to incorporate philanthropy into their estate planning. 

Updated assumptions: The software has updated underlying assumptions, such as risk factors for income, to provide more accurate calculations.

Using the Estate Preserver Plan

1. Input data: Input information such as real estate properties, TFSAs, GICs, and RRSPs, along with their growth rates and tax rates. This helps the software calculate the necessary face amount of insurance to cover projected capital gains liabilities at life expectancy. You can use the Estimate of Taxes and Charges Worksheet to collect the data you’ll need.
2. Generate a cost analysis: The software provides a cost analysis of different options to fund liabilities: buying life insurance, setting money aside, selling assets, or borrowing money. It demonstrates that using the Estate Preserver Plan is the most cost-effective solution.
3. Access illustration and reports: Project evolving estate needs and insurance values, create a concise executive summary or detailed report with a breakdown of projected values. The projections and reports compare the estate value and tax liabilities with and without the Estate Preserver Plan.

Benefits for advisors

The updated Estate Preserver Plan is designed to help you generate larger permanent sales with manageable premiums. It is suitable for mid- to mass-affluent markets needing permanent insurance. Use the plan to offer clients a cost-effective solution to manage their estate planning and capital gains liabilities.

Resources:

• The Wave 56.0
• The Estate Preserver Plan - Advisor Guide
• Estate Preserver Plan Client Brochure
• Estimate of Taxes and Charges Worksheet