You own a private corporation that has significant assets in taxable investments. Your corporation’s investment portfolio is overexposed to a single asset class, with a large portion allocated to fixedincome investments. You want to create a diversified, stable pool of assets without sacrificing liquidity, but also want to maximize and protect the value of your estate for your beneficiaries.
The Corporate Investment Reallocation helps to diversify your corporation’s asset mix in a taxefficient manner, provides comparable liquidity to a traditional investment portfolio, and can help to significantly increase the value of your corporation and what you can leave to your beneficiaries.
Your corporation buys a permanent life insurance policy on your life to protect the value of the corporation for future generations. Your corporation owns the policy, pays the premiums and is also the beneficiary.
In addition to protection, the policy also offers a number of benefits.
Consider this strategy if you:
There are additional considerations and risks associated with the Corporate Investment Reallocation Strategy beyond those discussed here. Policy loans and withdrawals may have tax implications. Before implementing any strategy consult with your tax and legal advisors
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