Corporate Estate Bond
Shareholder of a private corporation who has strong desire to leave a legacy at death. Age 45 and older. Corporation has funds
available to invest.
StructureCorporation uses surplus cash, currently invested in taxable investments, to fund or overfund a life insurance policy.
Comparative AnalysisCompare the estate benefits of a corporate owned permanent life insurance policy to a taxable investment.
BenefitsProvides 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.