Corporate Estate Transfer / Corporate Bond / Capital Dividend Account (CDA)

Corporate Estate Transfer / Corporate Bond / Capital Dividend Account (CDA)

• Client Profile:

• Shareholder of a CCPC (OpCo and/or HoldCo)
• Surplus assets within the corporation
• Shares to be bequeathed to heirs
• Passive income within the corporation that is subject to high corporate tax rates
• Perhaps joint-life, where one of the insured’s is rateable or uninsurable

• Solution Opportunity

• Utilize accumulated corporate surpluses and/or cash flow to fund corp-owned, corp-beneficiary UL, funded as quickly as possible.
• At death, funds are paid out to corp, with the bulk of same (death benefit less ACB) creating CDA room, which may in turn be flowed out of corporation.
• On JLTD, fund value paid-out at 1st death, and deductions to 1st death, for added flexibility.