Buy Sell

Bye Sell insurance

Need

Shareholders of a private corporation willing to plan for future funding need today. Desire to ensure smooth transition of business at death. Want to implement shareholders’ agreement with buy-sell provisions.

Structure

Shareholders of a private corporation are insured under a life insurance policy. Policy proceeds are used to fund the buy-out at death.

Comparative Analysis

Project fair market value of shares and compare cost of life insurance to other methods of funding the buy-out

Benefits

Funds available exactly when needed. Insurance proceeds received tax free .Flexible structure:

  1. Promissory note
  2. Redemption
  3. Criss-cross

If corporate owned:
– Premiums paid with cheaper after-tax dollars
– Proceeds generate credit to Capital Dividend Account

  • Insurance Plan Canada Portal., 10-1200 Derry Road East Mississauga Ontario L5T 0B3
  • +1 877 495 2525
  • +1 419 833 8533
  • +1 905 670 5488
  • info@insuranceplancanada.com