Yes, you can transfer ownership of life insurance policies. There are, however, some things of which you should be aware.
If the policy is currently assigned for collateral, or there is an irrevocable beneficiary, their consent would be required before a transfer.
In Canada, with one exception, transfers of ownership are considered a deemed disposition. In other words, it is the same as if you cashed the policy in and it may trigger a taxable event.
The one exception is a transfer to your child when the child is the only life insured under the policy. This creates an opportunity for an intergenerational wealth transfer. (If interested ask me for details). Child includes any natural or adopted child, grandchild, stepchild, son or daughter -in-law.
Check to be sure of the consequences, before you make a transfer.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
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If the policy is currently assigned for collateral, or there is an irrevocable beneficiary, their consent would be required before a transfer.
In Canada, with one exception, transfers of ownership are considered a deemed disposition. In other words, it is the same as if you cashed the policy in and it may trigger a taxable event.
The one exception is a transfer to your child when the child is the only life insured under the policy. This creates an opportunity for an intergenerational wealth transfer. (If interested ask me for details). Child includes any natural or adopted child, grandchild, stepchild, son or daughter -in-law.
Check to be sure of the consequences, before you make a transfer.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.