If your business has accumulated a significant amount of retained earnings over the years or owns extensive tax deferred investment vehicles, such as extensive investments in real estate properties, a tax liability may arise in the form of capital gains due to a deemed disposition of  business shares owned by you or another shareholder at fair market value. If funds or other assets are not available to pay the tax liability, business assets may have to be sold, possibly at a price below the fair market value.

 

Life insurance can provide the funds needed to pay the tax liability in this situation.

 

We can help you find effective solutions to these issues.