The Biggest Tax Bill of Your Life

By Tim Leonard

The recent change to a two-thirds inclusion of capital gains means on the death of a successful business owner their estate will have the biggest tax bill of the owner’s life.

This capital gains change increased estate tax from 26.76% to 35.69%, or 9% more on the shares the owner owns in their company.

What is even worse is the executors for your will need to sell assets in your corporations to pay this bill. The same two-thirds capital gains inclusion raises corporate tax from 28.96% to 38.62%, or 10% more, to sell and then extract the money to pay the new 35.69% estate tax rate on capital gains.

This is effectively tax on tax, to recent capital gains fueled by low interest rates over the past 10 years.

Unplanned, the new two-thirds inclusion rate on capital gains tax implies, owners can face as much as 66% elimination of their corporate wealth on death, without proper planning.

Un-planned estate tax can be financially costly and stressful to your family.

More importantly, the successful business owner can eliminate both with planning.

Corporate life insurance is the solution to pay estate tax.

As well, most business owner’s utilize estate freeze’s, to establish their estate tax liability today, so the tax liability can be minimized.

Successful business owners face the biggest tax bill of their life if they do not plan. Well integrated planning with an insurance agent, CPA and lawyer helps them pay much less estate tax, leaving more for your family and/or charity.

To Summarize: Now more than ever before, successful business owners can use a well integrated plan to minimize the impact of these higher taxes.

This publication contains the opinion of the writer. The information contained herein was obtained from sources believed to be reliable, but no representation or warranty, express or implied, is made by the writer, Mandeville or any other person as to its accuracy, completeness or correctness. This publication is not an offer to sell or a solicitation of an offer to buy any securities. The information in this publication is intended for informational purposes only and is not intended to constitute investment, financial, legal, tax or accounting advice. Many factors unknown to us may affect the applicability of any statement or comment made in this publication to your particular circumstances. Hence, you should not rely on the information in this publication for investment, financial, legal tax or accounting advice. You should consult your financial advisor or other professionals before acting on any information in this communication.