More than double your after-tax estate value

More than double your after-tax estate value

Posted by Admin1034 in Blog, Uncategorized 31 Mar 2014

Our Corporate Estate Transfer Strategy can help you convert a company’s taxable surplus into a non-taxable surplus, and significantly increase the company’s after-tax value for estate purposes. Here’s how it works:

  •  The company transfers its liquid assets into an exempt life insurance policy over a number of years
  • When the business owner dies, the insurance policy pays a death benefit to the company that is tax-free
  • Most or all of the death benefit can be paid tax-free to the owner’s beneficiaries who have inherited the shares of the company from the company’s capital dividend account

This strategy can result in an after-tax estate value of your  company that’s two and a half times more valuable than if your company remains fully taxable.

 

CASE STUDY

50 year old male & 48 year old female both non-smokers 

  • deposited $50,000 annually for 10 years vs. investing retained earnings inside their corporation
  • 2nd to die death benefit is equal to 5.3% net return
LIFE     CORPORATE INVESTMENT
INSURANCE  

VS

3% NET  
         

YEAR

DEATH BENEFIT

YEAR

VALUE

YEAR 1

 $          1,283,921.00  

YEAR1

 $         515,000.00

YEAR10

 $          2,427,739.00  

YEAR10

 $         671,958.00

YEAR15

 $          2,472,977.00  

YEAR15

 $         778,983.00

YEAR 25

 $          2,833,433.00  

YEAR 25

 $      1,046,888.00

YEAR 35

 $          3,429,550.00  

YEAR 35

 $      1,406,931.00

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