If you have a parent or older relative for whom you are financially responsible in one way or another, here is a suggestion.
Let’s say your relative is 80 years old with $100,000 to invest. GICs pay nothing, the stock market is too volatile and what you need is the best fixed income.
The parent or relative buys a life annuity guaranteed for 35 years which pays about $400 per month. But in the event of death, sometime before age 115, the beneficiary will inherit the payments. And as these payments were based on the age of an 80 year old, the younger beneficiary will benefit accordingly.
The non-registered income will be taxed on an accrual basis and therefore interest will be reported each year as it is earned.
The only part of the income payments to be taxed is the amount paid in excess of the capital repayments. A tax schedule is supplied with each policy.