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JULY 2013: SEGREGATED VS MUTUAL FUNDS

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SEGREGATED VS MUTUAL FUND

                                                                                              MUTUAL FUND                          SEGREGATED FUND

Potential Creditor Protection                          (1)           No                                           *               Yes

Death Benefit Guarantee                                                       No                                                           Yes

Maturity Guarantee                                                                 No                                                                  Yes

Probate Fee bypass                                          (2)           No                                                  (3)             Yes

Estate Fees reduction                                      (2)           No                                                (3)             Yes

Privacy                                                                                         No                                                                    Yes

Avoid Wills Variation Act                                              No                                                                    Yes

Quick proceeds disbursement at death                      No                                                           Yes

Non-registered Successor Annuitant                          No                                                           Yes

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(1)advisor to find out if they are eligible for this kind of protection. With appropriate beneficiary designation.

* Bankruptcy and Wage Earner Protection provides some creditor protection for RRSPs and RRIF in case of an unforeseen bankruptcy.

(2)Not applicable in Quebec as notarial wills do not need to be probated by the court and for non-notarial wills, probate fees are nominal.

3) Unless the contract is registered

(This document is for advisor use only and is not intended for distribution to the public)

 

 

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