Insurance Advisor and Financial Planner based in Calgary.
Selling your Business?
Are you selling a business and facing significant tax liabilities with CRA? Do you have a life insurance policy (Term, Whole Life or Universal Life) that is currently in place that you and your accountant were thinking of terminating? What if that policy, at no cost to you, could be used to offset some or potentially even all of your tax liability without doing anything other than donating it? Accountants often see corporately owned life insurance as a P&L issue vs. from a Balance Sheet perspective.
Or, are you buying a business where the current owner has a corporately owned life insurance policy that was originally put in place for the purposes of Key Man Insurance, shareholder agreement funding, paying taxes upon death, paying off outstanding business loans or even just to leave a legacy behind? Assuming ownership of that very policy and subsequently donating it can result in vast tax savings that the average accountant may not even be aware of so doing anything, please contact us and our team of expert accountants to review your situation with no obligation. We will even work with your existing accountant and take a team approach to ensure everything is completed and set up properly. Having a strategy to monetize something that would otherwise be cancelled without any further thought is a no-brainer.
In order to make the above happen, we work together with the Loeys-Dietz Syndrome Foundation Canada (LDSF Canada) and they accept the donation of Canadian life insurance policies on Canadian insureds. The donor receives a tax receipt for the FMV (fair market value) of the policy if it has been in force for three years and a day. The tax receipt is good against all income (including withdrawals from Registered plans without affecting Old Age Security) for 6 years (current plus 5 future years).
In summary:
What's in it for the Donor?
Large Tax Receipt
Donor (owner) receives a large tax receipt for an asset that typically has no value on his/her books.
No Premiums to Pay
Charity pays all premiums once ownership change is done.
Medical Legacy
Donor leaves a medical legacy that will fund research globally (genetics, cardiology, pregnancy, allergy, aging, (joint inflammation), scoliosis, gastrointestinal, mental health) and support patients and their families.