A.P. Reid's Group Insurance Programs:
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Estate Saver
How much is your business worth? If you were to be approached today by an interested person who wanted your business, how much would you sell it for? I suppose you'd think about the tax implications – the Capital Gains Taxes you would have to pay upon the disposal of your business. You'd reserve some of those funds for your income tax return and the taxes you'll be assessed.
Do you know if the Grim Reaper beats you to retirement – you can't bequeath your business to a family member tax free? Your business is considered to be "sold" at fair market value. Regardless of what your shareholders agreements might say – your estate, (which means your family) bears the final tax burden as if you actually sold your business to someone else. This tax burden is based on fair market value, even if the business is kept in the family or sold at less than fair market value.
This is going to put a huge dent in whatever assets and funds you've left for your family. And time and time again, we've all witnessed dreams shattered when sons and daughters could not follow the footsteps of their parents into the family "shop", because that shop needed to be sold to pay Revenue Canada.
You probably need our APReid Insurance Stores "Estate Saver". This death benefit policy can be purchased by the business, or by the family. It can provide the necessary death benefit for partners, or to meet the obligations of a shareholders agreement. It is useful for entrepreneurial businesses, partnerships, or key shareholders in multiple ownership businesses. The beneficiary can be the family or your partners.
Ask for an Estate Saver Quotation from any APReid Insurance Store. 10 simple questions - 10 simple answers - and a price can be developed.