It's interesting that RRSPs were virtually unheard of by Canadians until the banking industry was allowed to sell them, and now we find the same issue with the Family Tax Strategy, in that so few people are aware of how valuable they can be in supplementing retirement and estate planning.

As indicated by KPMG in their book, Tax Planning For You And Your Family, 2001, you don't have to love insurance to love the Insurance Act: "The Life Insurance industry has developed attractive and highly sophisticated products that can help you meet two planning objectives at once: having insurance coverage and providing retirement income from tax sheltered growth.

This program embodies several integrated tax opportunities: First, deposits accumulate in a Universal Life plan yet there is no tax payable on the growth, allowing considerable funds to accumulate much like an RRSP, but the similarity stops there. Thereafter the FTS has distinct advantages.

Secondly, the accumulated funds are assigned to the bank, securing a line of credit with the interest payments capitalized, such that no payments are required as long as you live. Since the money spent from the line of credit is a loan, there is no tax reportable or payable on income, and no clawback on seniors' benefits either.

Finally, when the program matures, at death, there is still no tax payable by you or your heirs. Here's why: the payout is life insurance proceeds which are tax free, and the money is used to repay the loan and accumulated interest. The balance of the estate value is paid to the heirs you name, and on top of everything else, bypasses probate, avoiding fees, publicity, creditors, and anyone wishing to contest your intentions.

One of the truly empowering elements of this program is the freedom to make choices when you're ready. You don't need to decide when to draw income, how much to draw or even whether to draw, until you feel you know. This completes the certainty that your Family Tax Strategy will be personalized for you, and only when you're good and ready.