Right-Sizing Paid-Up Capital to Access the Capital Dividend Account
One recurring issue in owner-managed estate planning is a corporation that has a substantial capital dividend account (CDA) often arising from life insurance proceeds received on the death of a shareholder but is unable to distribute that value to the estate on a tax-free basis….
Long-time readers may remember our earlier article on the “Capital Dividend Election Trap,” which warned about the risks created by the Federal Government’s proposed increase to the capital gains inclusion rate (the portion of capital gains that are taxed) from 50% to 66.7%…
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