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The beneficiary is the person indicated in the life insurance police to receive with your death the amount of the insurance. You can designated a beneficiary (your spouse for example), or you can leave the money to a trust? If you choose to leave the money to your having right, the money will be fixed with expenses of homologation at the time of the payment of succession. If you choose a trust, you must take care to inform a tax adviser.

If you indicate a beneficiary, the money does not enter in your succession, but is directly versed to the person or the organization that you indicated. The beneficiary does not have homologation expenses to pay.

PROTECTION AGAINST CREDITORS

Depending of who is the designated beneficiary, the assured capital can be or not under the shelter of the creditors. Provincial and States insurances laws stipulate that if the beneficiary is a spouse, a child, a small-child, the father or the mother, the assured capital can be seized by creditor. Within Quebec, the beneficiary must be related to the police holder. In the other provinces, it must be related with the policy-holder. In US it depend on wich states. This provision applies to the adoptive children in the majority of provinces, but not with an ex-conjoint, except if this one were indicated profit irrevocable.

IRREVOCABLE BENEFICIARY RECIPIENT

You can designate a beneficiary recipient or a trust on a purely irrevocable basis. That means that as the holder of the police, you can't change or revoke the beneficiary recipient without consentment.

The assured capital is protected from your creditors and it do not enter into your succession. In Quebec, the spouse is considered like an irrevocable recipient but, in the event of divorce, it loses automatically this statute.

CHARITABLE ORGANIZATIONS DONATION

You can use life insurance for making charitable organizations donations. At your death, the sum you dedicated to is paid to the organization that you designate. In that case premiums may be income taxable deductive if the charity organization is approved by the Customs Agency and Revenue Agency Canada or other state or federal government agency.

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