More than double your after-tax estate value
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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