Comprehensive Review
We can provide a no-obligation review of your agreement-particularly surrounding the areas of death, disability and critical illness. This agreement is often overlooked, rarely updated and frequently underfunded or unfunded.
The Cost of Status Quo - If an agreement has not been completed or is inadequately funded, the impact on the cash flow of the business in the event of a triggering event can be devastating. Using simple assumptions, the impact can be clearly demonstrated.
Funding Options - What is the most efficient and effective method of funding an agreement?. Term insurance? Permanent Insurance? Our comparative table will analyze this on both an aggregate and present value basis
The need for buy-out provisions on the disability of a shareholder is often overlooked. This is of great concern given the evidence that there is a greater likelihood of disability before age 65 than death. Having disability insurance to fund a buy-sell provision can be complex. The shareholders' agreement must address the following: definition of disability, timing, method by which buy-out occurs.
How to Minimize Capital Gains on Death
Properly structuring the agreement may allow for the estate to minimize the capital gains payable at death
Securitizing Shareholders Loans
In the event of one of the shareholders/partners suffering a critical illness, tax-free liquidity would be beneficial.
Guaranteeing liquidity of any outstanding shareholders loans can be accomplished with some creativity
Insuring Key employees
Insuring key employees can mean the difference between the continued success or sudden failure of your business. Creative structuring can provide you with a powerful attraction and retention tool.
Succession planning
The issue of succession planning is a trillion dollar problem in Canada and it will peak in the next 7-10 years.
Preparing you for the issues you will face and helping you with tax-efficient strategies will separate you from your competition