Canadian Taxation of Life Insurance provides an extensive discussion on the tax treatment of life insurance and estate planning strategies.

For those who practice in the fields of estate planning and business or personal tax, a clear understanding of current rules for taxation of the life insurance policies and annuity contracts is vital. Canadian Taxation of Life Insurance is a unique and comprehensive reference source that provides inestimable assistance to lawyers, accountants, and financial and insurance advisors in evaluating, planning, and maximizing the potential benefits that life insurance products provide.

The authors discuss, in detail, the use of life insurance in business and estate planning, including income tax rules applicable to life insurance policies, from both a current and historical perspective. Extensive coverage is given to various insurance strategies, their tax consequences in corporate, Partnership, and personal contexts, as well as the accounting implications associated with these strategies.

What's New:

Current to August 15, 2025 the thirteenth edition includes:

Discussion around behavioural insurance and its impact on pricing assumptions;
CRA technical interpretations regarding donations, post mortem pipeline transactions, various trust related issues and transfers of life insurance policies in certain contexts including intercorporate transfers where a trust is interposed;
Discussion on butterfly transactions and the transfers of life insurance policies;
Discussion on the proposed and subsequently cancelled capital gains inclusion rate changes and its impact on insurance planning;
Potential impacts on leveraged life insurance relating to the updated general anti-avoidance rule, limitations on excessive interest and financing expenses and alternative minimum tax (AMT);
Discussion on the taxation of First Home Savings Accounts at death ;
Tax case law concerning beneficiary designations under corporate-owned life insurance;
Discussion on intercorporate transfers of life insurance where a trust is interposed;
Discussion around the lifetime capital gains exemption, employee ownership trusts and the proposed Canadian Entrepreneurs Incentive and the implications for life insurance planning;
Updates to US Estate and gift tax exemptions to 2026;
Discussion around Canada-US cross border life insurance planning using irrevocable life insurance trusts, dynasty trusts and unlimited liability corporations
Discussion around Part VI.1 tax, charitable giving and the redemption of shares;
Discussion of segregated fund contract beneficiary designations versus priority of payment in favour of a spouse relating to locked-in plans (e.g., LIRAs, LIFs, etc…);
Discussion of beneficiary designations when an RRSP is converted to a RRIF.

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Canadian Taxation of Life Insurance, Thirteenth Edition

Canadian Taxation of Life Insurance, Thirteenth Edition