Funding an Estate Freeze

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Funding an Estate Freeze

Steve and Julie (age 75 & 73) completed an estate freeze eight years ago

Steve and Julie set up a family trust eight years ago to transition their business to their four children. They have $16 million of preferred shares of the company. As a result, they have a $4 million income tax liability in their estate. They have not funded the liability and do not wish to use cash from the estate.

Together with their advisors, they determined that life insurance was an effective means to fund the $4 million tax liability. They applied to 4 major CDN insurance companies, and Steve was declined coverage due to health issues, and Julie was offered a standard rate policy. The result would be $170,000 per year for $4 million of coverage. They decided against this policy.

They were referred to Succession America to see if they could secure a better offer and rate for an equivalent policy. Succession America was able to secure a preferred offer for Julie, and the result was an annual premium of $118,000.

Steve and Julie executed the U.S. solution immediately.