It goes without saying that it takes effort to build your wealth. However, having substantial resources presents its own challenges. The balance between growing wealth and minimizing risk and taxes, demands careful planning and consistent monitoring.
When we mention Wealth Transition, you may refer to the end-of-life wealth transition. No doubt, this is a very important topic, and the center work of wealth transition planning. This is important because it is a complicated process. Not only do we need to map out the most tax-efficient way to maximize the impact with the given wealth, but we also need to manage emotions and equalization at the same time.
Strategy #1: Transferring a life insurance policy from a shareholder to a corporation
When a shareholder transfers a personally owned life insurance policy to a corporation, the tax consequences to the shareholder are generally dependent upon the policy’s cash value, its adjusted cost basis and whether the corporation gives consideration for the policy. The tax consequences to the corporation generally concern the policy’s new adjusted cost basis and other factors that might affect the capital dividend account calculation at death.
You work hard to make the goals you have for business, your family and yourself become reality.
At Harmony Financial Solutions, we understand that taking the initiative to begin working with a new individual on your financial plan is a big step. You may be currently working with an individual and for one reason or another are curious if there is a better fit for you somewhere else. Or perhaps this is the first time you have seriously considered beginning to work on creating a financial plan for your future. We understand that regardless of the path that led to our meeting, you want to be certain that us working together going forward will be in your and your family's best interest.