Posted under: FMV
For self-employed professionals — such as doctors, dentists, lawyers and architects — the tax savings from using a personal or private corporation are well known. By incorporating their business, they can either retain earnings or pay dividends, thus managing the amount and timing of personal income taxes. A less well known but also effective tax-efficient strategy involves transferring life-insurance policies to the corporation. Morningstar contributor Michael Ryval, explores the pros and cons of this strategy in this article, and speaks with GBL VP Fraser Lang about Fair Market Value.
Tea at Taxivity talks to GBL Founder Gordon Lang Discusses Fair Market Value of Your Life Insurance Policy: