STRATEGIES FINANCIAL HEALTH

Better prepare for retirement,
minimize income tax, optimize
portfolio performance; these
are legitimate and
accessible goals.

To know more

Strategies for Entrepreneurs

 

Transfering a Life Insurance Policy to a Corporation

Capitalize on the fair market value of your life insurance policy tax free. Is it possible? Certainly!

All you need to do is transfer ownership of your life insurance to your corporation in exchange for the FMV which you can withdraw tax free. The FMV should be assessed professionally to determine a fiscally acceptable amount. Afterwards, all future premiums are paid by the corporation.

Multiplying the Capital Gain Exemption

Establishing a family trust with multiple beneficiaries (spouse, children, or holding company) can multiply the capital gain exemption for holders of Qualified Small Businesses (QSB).

Universal Life Insurance within a Holding Company

This strategy involves investing the amounts accumulated in your holding company through a Universal Life insurance policy. Profits accumulate tax-free in the policy capitalisation fund. When the policy matures, the proceeds minus the adjusted cost base (ACB) are deposited into the company’s Capital Dividend Account (CDA) where a tax-free dividend is paid to the shareholder.