What We Are Seeing? by Paul Etherington

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Perhaps because of some of the positives summarized in the final paragraph of Brian Etherington’s February 16th, 2021 post entitled “ Out of the Darkness” we are seeing a significantly increased interest amongst our clients and new referrals in ensuring that the risk management strategies of their estate planning programs reflect accurately their tri-objectives for family financial independence, efficient liquidity to fund estate taxes  (capital gains & income taxes) at death and legacy gifts.
Working from home has provided an even greater appreciation for family and its values; whilst its catalyst has presented a greater awareness of our mortality and morbidity.
Combined with that non catchy, well kept secret called “ The Capital Dividend Account” (CDA), privately held corporation’s in Canada are implementing substantial amounts of corporate owned life insurance that are paid for with after tax corporate dollars rather than more expensive after tax personal funds. 
The CDA allows the insurance proceeds to be received by the corporation tax free and to be used for payment of such things as debt or the provision of liquidity. 
In addition most of the death benefit can be paid as a tax free capital dividend to the deceased’s estate to fund the above referenced three most prevalent estate liabilities and objectives.
Should you feel it timely to entertain a current review, know that you are in good company.