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Buy Sell Agreements

This tax topic is a continuation of our examination of buy/sell agreements which started with the Tax Topic entitled “Buy/Sell Agreements – Some Preliminary Considerations”. This Tax Topic deals with the criss-cross purchase method of handling a buy/sell commitment using personally owned insurance. The criss-cross method of arranging a buy/sell agreement is often the simplest method. The buy/sell agreement is between the shareholders or between the shareholders and a trustee but does not involve the corporation.  Read more... (PDF)

Corporate Insured Retirement Program

This is a purchase of a permanent life insurance policy with cash value component. This provides an option, through leveraging, for significant tax advantaged supplemental retirement income for the shareholder(s). Deposits inside the policy grow and accumulate on a tax-deferred basis. It also offers flexibility for future financial needs.

How the Corporate Insured Annuity works

This financial planning strategy requires your corporation to liquidate your company’s interest-bearing investments. The resulting cash is used to purchase a life annuity contract, which effectively eliminates your access to this capital during your lifetime. This strategy is designed to give you increased income today while ensuring funds are available to make a gift when you die. Read more... (PDF)

How the Insured Annuity Works

This financial planning strategy requires you to liquidate your interest bearing investments such as GIC’s, term deposits, bonds and bank accounts. The resulting cash is used to purchase a life annuity contract. Read more... (PDF)

How the Estate Bond Works

This financial planning strategy requires you to use your surplus cash to purchase a life insurance policy. By replacing the taxable investments with a life insurance policy, you will increase the funds available to your heirs when you die and reduce the amount of tax you will pay today and in the future. Read more... (PDF)

Split Dollar Life Insurance

This Tax Topic is a continuation of our examination of the Split Dollar concept, which started with the Tax Topic entitled “Split Dollar Life Insurance”. This Tax Topic will explore a number of different situations where the Split Dollar concept is used as a creative alternative to solve complex problems. The situations explored range from more traditional applications of the concept to the most current planning techniques. Read more... (PDF)