If a shareholder in a company dies, becomes permanently disabled or decides to part ways from the business, a buy sell agreement allows all parties involved to follow through on transfer of the shares in a pre-determined, mutually agreed upon fashion. Typically, remaining shareholders will want to buy the departing shareholder's interest. Life Insurance and/or Disability Insurance can fund the purchase of the shares, especially when the shares must be purchased due to death or a disability.

Determining what type of product is essential to the success of the arrangement. Our team of advisors will work with you and your team to help determine which product best meets your needs and whether policies should be owned by shareholders or by the corporation. We work with teams comprised of Tax Lawyers and Accountants to help our clients determine what works best for their situation.

Let us help you with proper planning. 

If you are a small business owner, you may have a key employee who is vital to your business. A sudden death or disability may impact the business financially, especially in the short term. Key Person Insurance can help ensure the continuation of your business by providing much needed cash while you find and train a new employee, or your existing employee recovers.

Give us a call. We can help you with a solution that meets your needs and budget.

Corporate owned vs. Personally owned? The difference lies in the tax treatment. Premiums paid with corporate after tax dollars are much cheaper than personal after tax dollars, but a tax free death benefit only comes with personally paid premiums. Or are there other options?

Holding Companies ... Trusts ... Capital Dividend Accounts ... Adjusted Cost Basis ...

What is the CRA's position on the CDA? Can I use Life Insurance as collateral for a corporate loan?

If you are a shareholder in a private corporation, take the time to understand how the Capital Dividend Account is a critical component of Estate and Tax Planning. We can help you understand how Life Insurance proceeds received by your corporation can give rise to a credit to the CDA.