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	Death in Family with Estate Planning - Actual Case      - Husband and wife (Mr. & Mrs. X) have five kids; they own a septic tank service business that is very successful.  - In 1984 Mr. X dies. The children have all moved out of the home and are not involved in the business.  - Then Mrs. X decides to sell the business to a competitor for $750,000, all included. She then takes the money and invests as much as she can into her RRSP, and the rest into mutual funds.  - In 1990 Mrs. X goes to her accountant to get her tax return prepared, and upon examination the accountant notices that the $750,000 that she had invested from the sale of the family business, had grown to be worth $1,684,320. Mrs. X in turn asks her accountant what will happen to this money if and when she dies?  - The accountant explains to her that the difference between what she paid for the mutual funds and what they are currently worth, ($934,320), would be considered a capital gain upon her death. Of that, $467,160 will go to income tax which would be paid by the estate, and the remainder, ($1,217,160) would be available to the estate.  - Mrs. X was astonished to find out that she would lose that much to taxes. She wanted to know what she could do to avoid losing that much of her life savings. Mrs. X was determined to see that her 5 children receive the full amount of the savings.    Solution:  - Mrs. X, who is 73 years old, after hearing the options, decides to take out a Term to 100 life insurance policy, with a death benefit of $500,000. This will pay the taxes at death on the capital gain as life insurance proceeds pass tax free to the beneficiary. Mrs. X names her estate as the beneficiary so it can pay the taxes.  - Mrs. X lived to the age of 79. The life insurance cost her $938 per month in premiums, for 76 months, ($938 x 76 = $71,288). Thus, net savings to Mrs. X's estate, ( $467,160 - $71,288 = $395,872).