The beneficiary of a segregated fund contract receives the funds upon death of the annuitant. Here is a way to retain indirect control over the investments by using an irrevocable beneficiary designation. A parent could set up a segregated fund contract with their child as the owner/annuitant and him/herself as the irrevocable beneficiary.
This could help parents with children entering post-secondary education. With the parent as the irrevocable beneficiary he/she would be required to sign for withdrawals; transfers of ownership; and beneficiary changes, ensuring that they remain involved in what happens to the money.
TAX ADVANTAGE: School expenses will likely offset the child’s income from the investment, there would be no attribution of income and the parent can control how much money the child gets. Please ask for our Investor Opportunities Guide for more information about irrevocable beneficiaries at ghughes@nb.aibn.com
No comments:
Post a Comment