Kickstart Your Corporation

Utilizing Tax-Efficient Strategies

Recommendations

Net Worth

Proposed Recommendations—Utilizing Tax Efficient Strategies Available for Corporations

Starting 2021—Personal Strategies:

• Stop corporation salaries and begin splitting dividends evenly, $105,000 each (today's dollars)—saving remaining net income in corporation
• Stop maximizing RRSP and begin maximizing TFSA until death—with planned revision of retirement asset liquidation order, to spend RRSP funds first to incur less taxes upon estate
• Debt swap with Non-Reg to make mortgage tax deductible on home
• Formulate estate plan with both primary and secondary wills, along with appropriate trust structures for protection and tax purposes

Starting 2021—Corporate Strategies

• Transfer existing life and CI insurance into corporation
• Utilize corporate-class ETFs in corporation (6% tax-deferred capital gains)
• Implement $150,000 leverage in corporation, utilizing corporate class investment structure—benefiting from interest deduction and tax deferral
• Put in force corporate joint-last-to-die whole life PAR policy—$30,000/year premium for 10 years
• Creation of estate plan for intergenerational wealth transfer

Starting 2024:

• Increase corporation leverage loan principal to $300,000
• Leverage of $500,000 ($250,000 for each child) into trusts for Mark and Chloe, utilizing corporate-class investments (taking advantage of gains growing tax-free in children's hands) with tax-deductible advisory fees
• Utilize trusts to protect wealth and ...