You may have clients who prefer that the inheritance they’ve set aside for their loved ones be distributed over time instead of a one-time payment. These clients are typically concerned that their heirs may not be able to cope with managing a large inheritance. Others have dependent beneficiaries who require lifetime income for their ongoing care.
A trust arrangement can be a solution but there is a simpler and less expensive alternative.
The Annuity Settlement Option
With the Annuity Settlement Option on BMO Guaranteed Investment Funds (GIF), your clients have:
1. | A choice of distributing funds to their beneficiaries either through: |
· periodic instalments or · a lump-sum or · a combination of both 2. | Flexibility for beneficiaries who: |
· are part of a blended family and have stepchildren · have impulsive spending habits · are dependents who may not be able to manage money well · are financially dependent 3. | Comfort knowing that their estate will be distributed according to their wishes
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With the Annuity Settlement Option, there’s no need to set up a formal trust. Plus, with properly designated beneficiaries, the death benefit from a BMO GIF can bypass the costly probate and other estate fees – allowing your clients to leave even more for their loved ones. What’s more, BMO GIFs ensure that their assets are protected with a death benefit and maturity guarantee.
Any amount that is allocated to a segregated fund is invested at the risk of the policy owner and may increase or decrease in value. Any withdrawals will reduce both the Maturity Guarantee Amount and Death Benefit Guarantee Amount proportionately.
BMO Life Assurance Company is the sole issuer and guarantor of the BMO GIF individual variable insurance contract. Please consult the Information Folder (including Policy Provisions & Fund Facts) for details of BMO GIF.
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