Tax free family Compassion Package

The income tax allows for a one-time benefit for a taxpayer to transfer income tax free from your corporation to your family upon death of a key employee.  

Beyond Numbers can help you put the steps in place now for the future to benefit from this income tax provision.

Why would you be interested in this service?  

In planning for your family’s future one of the considerations you will have is the smooth disposition of your estate. Key components of a good estate plan include immediate, available cash for your family during the time it will take to process your estate, and effective tax planning; with the ultimate goal to reduce uncertainty for your loved ones.  The family compassion resolution can be a small but powerful step in this process as: 

1. The monies would be immediately available for your family – no estate management, no freezing of bank accounts until probate, and no public trustee need be involved in its implementation.

2. Using a marginal tax rate of 40% - you would save $4,000 in taxes.  The full $10,000 gets to your family - this would be a tax free payment to your family and is tax deductible to your company. 

Who Benefits?

The spouse and children of designated key employees - the company.

How much is the benefit?

The benefit is for $10,000 tax free – if this amount is allocated to more than one person than the benefit is shared.   For example if two children are the designated beneficiaries then they would each get $5,000 tax free.

How quickly can the family access the cash?

Immediately!  This benefit can be received as soon as the corporation is able to prepare the cheque.

What else?

To be able to take advantage of this benefit a special resolution needs to be created and placed in the company minute book to provide for the benefit.  We will prepare this resolution for you. 

How will anyone know to do this?

Our package includes the preparation of special letters to be held with your will and in your safety deposit box to serve as a reminder to your heirs and the executor of this provision.