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Legato for Business Succession 

The plan for succession​ of a ​family business, or investment property(s) involves many considerations. Legato can help by lowering the cost of meeting the parent's estate liability needs.

A "smooth legacy transition" depends upon planning and forethought. Most successful families in Canada have incorporated permanent life insurance into their plans. Legato aims to help everyone understand the opportunities and benefits.

Reasons & Suitability

REASONS for a CORPORATE LEGATO3 policy:
​Consider investing in a Legato3 policy either in a corporation or family holding company when:

• A shareholder of a privately-held, Canadian-controlled corporation.
• Over 40 years of age and healthy or have a convertible, Legato1 policy.
• Have excess retained earnings not needed for company operations or could be labelled "never spend" capital.
• Concerned about the claw-back of the small business deduction due to passive income gains.
• Wanting to maximize estate assets in a tax-efficient manner​ ​

SUITABILITY of a CORPORATE LEGATO3:
Answering yes to one or more of the following questions would suggest that you can benefit from implementing a corporately-owned Legato3 policy. Do you: 

• Have a business succession plan in place?

• Want to reduce the corporate taxes you pay on passive investments?
• Have plan to pass corporate assets to a beneficiary(s)?
• Have corporate investments with a deferred capital gain?
• Have a corporate life insurance need for one or more shareholder(s)?
• Want to guarantee a certain future value within your estate?​​

​ Legato3 for Succession
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 Life Insurance On A Shareholder
 Coverage For A Lifetime
 Deposit Premiums Over 7-10 Yrs
 5%+ Yield from Investment Pool
 "Fully Paid Up"

 Tax-Free Investment Growth
 Tax-Free Death Benefit that creates
​ Tax-Free Dividends (CDA)

Whole Life PAR

​  Suitability 
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 Shareholders of an operating company
 Shareholders of an investment company

 Corporate Tax Reduction
 "Never Spend Monies"
 Insured Retirement Plan
 Creation of An "Insurance Asset Class"
 Estate Balancing and Business Succession
 Estate Bond for tax-advantaged Liquidity
​ Legacy Impact

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Legato3: 

Life insurance protection lasting a lifetime, even past 100 years of age.
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Creation of alternate asset within the corporation or family holding company.
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Premium deposits required for 7-10 years, then the Legato3 becomes self-funding for life.
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The five (5)%+ annual investment yield* comes from the carrier-managed portfolio of real estate ownership, mortgages, and bonds. 
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The tax-free growth of the Legato3 policy value from that investment yield that means no taxable passive income for the corporation and no impact to the small business deduction.
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The Legato3 policy grows steadily in value while purchasing additional life insurance coverage throughout the lifetime of the policy.
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The Legato3 policy can be collateral for a loan at any time, creating funds for investments and income for retirement.
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After the passing of the life(s) insured:

• The carrier typically pays the death benefit within 60 days of notification.
• Those funds flow into the corporation tax-free. 
• The large CDA credit from the policy payout permits significant monies to be distributed as tax-free dividends from the corporation to the estate of the shareholder or for other obligations.  
• The combination of no tax on the policy payment nor the distributed dividends can create a significant impact on the value of an estate. 

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* Yield as currently forecast by the Canadian insurance carriers. 
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