What happens when your business is the bulk of your estate?
You spend a lifetime building a business. You plow your profits back into the company to keep it growing, locking your assets up in bricks, steel and machinery. You owe little or no money at all.
Yet the day you die, you may owe hundreds of thousands, even millions of dollars. Those dollars you’ve locked up will have to be unlocked. Revenue Canada doesn’t want bricks and steel, they want cash.
Liquidation may be the only way, and that could tear your estate apart overnight.
If you are spending a lifetime building a business, it should be worth keeping. Morkels Financial Services can tailor a program to your needs to help insure the continuation of your business. For example through a Universal Life Insurance contract your company deposits money into a Tax Sheltered account allowing corporate dollars to grow on a tax deferred basis. These dollars that otherwise would be going to Revenue Canada as tax, are effectively paying insurance premiums. Ultimately, tax free dollars are instantly created that will provide liquidity when it’s most needed.
Our group is equipped to handle all of your company’s insurance needs. We can put a plan into effect that will enhance corporate credit or help assure your company’s continuity. As well, we can put together a package to help insure an amount equal to one year’s profits, or even create a potential market for your company.
Buy-Sell & Stock Redemption Plans
A Business structured as partnership creates its own special set of problems.
A jointly owned business is similar to balancing a seesaw. As long as both partners are alive, they balance each other and the business runs smoothly. But imagine what happens when one partner dies or becomes disabled.
If your partner were to die, a spouse would probably become your new partner. You would want to buy the other half of the business, but where is the money going to come from?
Many partnership have agreements to buy each other out in the event of one partner’s death or disability. But what good is such an agreement without the money to buy?
We can create a program that will help make sure either partner will be able to buy out the other’s interest in the event of death or disability.
I will develop a “seesaw” insurance arrangement designed to meet your needs. When one partner dies, the other buys.
If your business is a corporation rather than a partnership, I can still use life insurance to Buy-Sell Agreements to fit your special situation.