How Successful Families Prepare for Tax at Death

Business-owner families often hold significant wealth in private-company shares, real estate and investments.

At death, some of those assets may create a substantial tax liability — even if your family has no intention of selling them.

The important question is:

Where will the cash come from?

Without enough liquidity, your family may have to sell investments, real estate or business assets simply to pay the tax.

Properly structured life insurance can create cash when it is needed most and may help preserve more of the assets you spent a lifetime building.

• Do you know what the estimated tax bill could be at the surviving spouse’s death? 
• Would your family have enough cash to pay it? 
• Could they be forced to sell assets at the wrong time? 
• Could corporate-owned life insurance help fund the liability? 
• How much of your wealth do you ultimately want to leave to family, charity or other beneficiaries? 

Your family and the charities you support can be intentional beneficiaries of your wealth.

Tax is different.

The objective of estate planning is to understand what may eventually be owed and decide in advance how that liability will be funded.

For some families, life insurance can provide dedicated liquidity rather than leaving the next generation to solve the problem after death.

Work with your accountant to understand the potential tax arising from company shares, real estate and investments.

Determine whether your estate is likely to have enough cash available without selling important assets.

Compare available options, including existing assets, borrowing and life insurance.

Fusion can work alongside your accountant and legal advisors to determine whether insurance should form part of the strategy.

The goal is not simply to buy insurance.

The goal is to preserve flexibility, create liquidity and help more of what you built reach the people and causes you intended.

Bring your corporate structure, estimated asset values and existing insurance information.

BOOK A 20-MINUTE TAX-AT-DEATH REVIEW

Tax liabilities, insurance results and estate-planning outcomes depend on individual circumstances and future tax rules. Spousal rollovers and other tax-deferral provisions may apply. 

Fusion does not provide legal or tax advice. Clients should obtain advice from qualified tax and legal professionals. Insurance coverage is subject to eligibility, underwriting and policy terms.