Also called Split dollar, this strategy involves a corporation being the beneficiary of a critical illness benefit, and the shareholder being the beneficiary of the return of premium. This can result in significant tax savings to the shareholder.
CRA has made it clear that the premium split in a CI contract will generally result in a taxable benefit to the shareholder.
A properly determined actuarial split is required, and actuarial certification that the taxable shareholder benefit is $0.
Wall Actuaries also assists in selling a new policy using the shared ownership strategy. We provide a presentation explaining the strategy, and showing the expected tax savings for the proposed policy.
To receive this presentation, please contact us.
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