Benefits of Segregated Funds

Estate Planning

Many people don’t realize that probate is a public process and can cost a significant amount of money. Segregated fund assets can be paid directly to your named beneficiary, thus avoiding the cost and complications of probate. By avoiding probate, you keep your financial affairs private and more of your proceeds pass directly to your named beneficiaries.

Taxation

Taxation issues such as how segregated funds are taxed at maturity, at death and during the course of the contract can be complex. To help you understand them better, here are some basics.

Annual Tax Treatment: Mutual Funds vs. Segregated Funds

In many ways, taxation of segregated funds is similar to that of mutual funds. However, there are many notable differences that may benefit you.