Your Situation

You have children or grandchildren. You have nonregistered assets you wish to pass on to them after your death.

Your Goals

You want

full control of the assets while you are alive
- e.g., for emergencies
tax-sheltered investment growth
creditor protection
to bypass probate fees, lawyer charges and other costs

Your Strategy

Buy a permanent life insurance policy on the life of a child
- you can also be insured, creating a Joint Last To Die policy
Name your "child" the contingent owner, as per section 148(8) of the Income Tax Act
- child becomes the policyowner upon your death, bypassing your estate
- if the child has not reached the age of majority, name a trustee instead
Pay premiums quickly (e.g., over 3-5 years) to maximize the benefit of tax-deferred growth

Item	Conventional Investment
Policyowner	You
Contingent owner	Your child or grandchild
Investor	You make the deposits
Life Insured	Your child or grandchild (and maybe you)
Beneficiary	Your child or grandchild

Your Considerations

Comparison with a Conventional Investment

Item	Conventional Investment	Cascade Plan
Tax-free growth	No	Yes
Tax-free transfer while alive	No	Yes (as gift) [verify]
Tax-free transfer through estate	No	Yes
Creditor protection	No	Yes
Bypasses estate	No	Yes (no probate, etc)

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