Associate at Castle Financial Group Ltd.
The 2017 year has been a tumultuous time rife with change. In particular, the recent tax proposals have challenged the way Canadians business owners think about small business tax planning. Within these changes, there are always two ways to look at the old adage of the glass half-empty half-full debate. This certainly applies to this year.
Now more than ever, clients, advisors, and accountants need to be taking a step back because the status quo is not the status anymore. For clients, it is a time to ask their accountants about how to plan for their future. For advisors and accountants, it is a time to challenge conventional planning and look for new ways to take care of client needs. In short, it is time to find the glass half-full.
As an insurance advisor focused around corporate tax planning, we have been constantly evaluating how the new proposals will affect the way our small business clients save their money. Corporate Life insurance has always been one way to accumulate wealth. With corporate life insurance, excess savings are sheltered from high corporate passive income tax rates. As small business owners are familiar with, succession plans also often revolve around changing hands and managing tax liabilities. Corporate life insurance is one vehicle that increases the estate value and avoids making difficult decisions that arise relating to assets. When merging the corporate savings element and the liquidity that corporate life insurance provides, corporate life insurance is vehicle that should be considered now more than ever as part of an effective small business tax plan.
The inevitable winds of change are here and it is important to look to our advisors with formulating a successful change in direction. Effective tax planning today will decrease the anxiety of missed opportunities and give business owners more control over their financial future.
This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action.