Corporate Estate Bond - Annuity Funded
Shareholder of a private corporation who has a strong desire to leave a legacy at death.Gratified by immediate completion of planning strategy. Prefers locked-in planning strategies.Age 65 and older .Corporation with liquid investments (to purchase annuity).
Corporation uses surplus cash, currently invested in taxable investments, to fund or overfund a life insurance policy.
Compare the estate benefits of a corporate owned permanent life insurance policy to a taxable investment.
Provides life insurance protection.Increases the size of the estatewhere proceeds received by the corporation are distributed to the deceased shareholder’s estate.Cash values grow tax deferred. Reduces current tax payable by corporation.Proceeds generate credit to Capital Dividend Account.