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The Unexpected Tax Incentive Canadians Don't Necessarily Want to Think About | Funeral Pre-Planner, Kat Downey
My article "The Unexpected Tax Incentive Canadians Don't Necessarily Want to Think About" was recently published in Yahoo Finance Canada. I would like to share this article with you here. There’s a tax incentive that some Canadians are dying to get: Income earned on contributions made to an “Eligible Funeral Arrangement” is allowed to grow tax-free under Canada’s Income Tax Act. “I find that many people do not know of the financial advantages or prepaid funeral plans,” says funeral pre-planner and licensed funeral director Katherine Downey of Legacy Matters. “EFA funds earn two percent tax-exempt interest. This rate of return is better than the current rates on saving accounts and GICs. A woman I worked with had money in her savings account to pay for her eventual funeral arrangements earning 0.5 percent interest. When she learned that her money could be earning two percent in an EFA, she arranged to set up her prepaid funeral and use the money from her savings account to fund her EFA.”