A 65 years couple with high retirement income. They didn’t need the CPP money to live on. Their CPP benefits will be taxed at 54% in Ontario. They also had a huge tax liability on their estate. They wanted to leave legacy as charitable donation and pay less tax.
By using some of their CPP benefits, we created a $1.0 million gift to charity for them. This also saved their estate $500,000 in taxes. Now they will leave legacy to be remembered while saving taxes now and on their estate.
By using some of their CPP benefits, we created a $1.0 million gift to charity for them. This also saved their estate $500,000 in taxes. Now they will leave legacy to be remembered while saving taxes now and on their estate.
A 35 years old couple got married few years ago, they purchased the house with $500000 mortgage. They wanted to insure balance of their mortgage and monthly mortgage payments.
If premature death, disability or critical illness happens to one of them it would be difficult to carry their mortgage payments and could lose their home
We put in place all-in-one insurance policy in place for $500,000 which will insure them for $500,000 for life insurance, $100,000 for critical illness and $2500 per month disability benefits. Now they were rest assured that no matter what happens they are covered with one policy.
Bill owns a manufacturing corporation that owes much of its success to the efforts of general manager, Jim. As a key person in Bill’s company, Jim has established relationships with clients, suppliers and the bank. If Bill business were to lose Jim due to death or critical illness the company could suffer lost revenue plus the costs associated with finding a replacement and getting back on track.
Bill’s business could be seriously impacted if Jim passed away or suffered a critical illness requiring a lengthy recovery.
Mark and Susan. Both 55, they own a successful company and have accumulated a significant corporate investment portfolio in their holding company. Mark and Susan want to invest some of these funds and continue building a legacy for their children. They’re also concerned about the large tax liability at death. We estimated tax liability approximately $2.6 million.
With corporate investments in HoldCo, the rate of return will be eroded by corporate taxes. When the HoldCo investments are liquidated on the death of the second spouse, the estate will wind up the corporation and the proceeds will be distributed as a taxable dividend.
By using some of their CPP benefits, we created a $1.0 million gift to charity for them. This also saved their estate $500,000 in taxes. Now they will leave legacy to be remembered while saving taxes now and on their estate.
Mr. and Mrs. Ali, both 64 and plan to retire next year. They have a holding company with real estate and fixed income investments totaling $10 million. They plan is to pass it along to their children and grandchildren. They pay income tax every year at over 50% on the business investment income. They wanted to leave more for future generations and less to the tax department.
The growth of fixed and passive income continue to be impaired by high taxes each year and would be taxed again when withdrawn from the company for their heirs.
We put a financial strategy in place by moving some of the investments into a tax exempt life insurance policy, with premiums payable for only 10 years. The policy is fully guaranteed and now provides an equivalent return of 11.5% at life expectancy of second spouse’s death, their beneficiaries will receive the insurance proceeds tax-free and the company will distribute the insurance to them without taxation.
A 45 years old professional with two children and a house wife and had $1.5 million mortgage, two investment properties and $500,000 stock portfolio. He is in 54% top tax bracket. He was concerned about protecting his family’s life style now and at retirement and tax liability to his estate if his wealth keep growing in this pace.
If premature death, critical illness or disability happens he could lose his home and there would not be enough money to continue family’s life style. He would also have 1.5 million tax liability to his estate. Family had to sell income producing assets to pay this tax liability at second death.
We worked out a plan where he would have $15000 of month income in case of disability and setup an insured retirement strategy by moving some of his fixed investments into an insurance plan, which gives him protection now, a tax free retirement income and tax free life insurance benefits to eliminate his estate tax liability.
A married, 47 year old real estate brokerage owner with a net worth of $25M hates life insurance. He will have estate taxes due on the second death. He has never purchased insurance because the premiums are too expensive and he can do much better investing his own money in real estate.
His estate would have been liable for more than $7.5 million of income taxes. His family would have been forced to sell assets under pressure to pay the tax bill.
His final estate tax liability of more than $7.5 million was eliminated by the placement of a new Life Insurance policy. We structured a leveraged life insurance policy where the premium was payable for only 10 years and all premiums were borrowed back at the interest rate of 4% from a leading financial institution to preserve his cash for his real estate investment.
Two partners in their mid-40’s operate a real estate business valued 25 million. They also had some of never used money in GIC’s. Each of them will have a very large estate tax liability on death. They are heavily invested in in real estate.
If one of the partner become disable or died then surviving partner had to borrow money or sell his personal assets to buyout deceased shareholder’s shares from his wife which would be very highly unlikely or impossible.
We helped structure a comprehensive shareholders agreement funded by appropriate insurance to guarantee a market value of shares and a buyer for the surviving spouse to receive full value for the company ownership without having to sell properties. We also provided last to die life insurance policies for their tax liabilities for fraction of the cost.
Dr. B 65 and his wife 60. They are asset rich and cash poor with $1.5 million in RRSP, a $3 Million of investment properties and GIC’s. They planned to use RRSP for their retirement income when it would be moved to RRIF at age 72.
They would have 1.2 Million tax liability on their investment properties growth and on remaining RRIF upon last spouse’s death. The family had to sell some of the investment properties to pay tax liability.
They now earn 5.25% guaranteed for life, with no market or interest rate risk. Their estate tax liability was eliminated and they leave income producing properties for their children and grandchildren.
