Apples-to-Apples at Year 10
Do Nothing
Passive investing
inside the corporation
inside the corporation
GICs, stocks, mutual funds — taxed at passive rate
Starting retained earnings
$500,000
Gross return (5%/yr)
$315,000
Passive income tax (~50%/yr)
($158,000)
Net corporate value at Year 10
$657,000
RRSP contributions (maxed, 10 yrs)
$324,900
Personal dividend tax to extract corp (45%)
($296,000)
RRSP taxable at death (50% avg)
($162,000)
Estate: deemed disposition & probate
($48,000)
Net to Estate — Year 10
~$476K
Goald & Co Strategy
COLI + IRP + CDA
coordinated structure
coordinated structure
Corporate life insurance + insured retirement plan + CDA extraction
Retained earnings redirected to COLI premium
$50,000/yr
CSV growth — tax-exempt inside policy (10 yrs)
~$620,000
Tax on CSV growth annually
$0
Death benefit at Year 10
$1,800,000
CDA credit (death benefit − ACB)
~$1,590,000
Personal tax on CDA dividend
$0
IRP retirement income (tax-free draws)
$120K/yr
SBD erosion from passive income
Eliminated
Net to Estate — Year 10
~$1.97M
Goald Strategy Advantage
+$1.49M
↑ More than 4× the net estate outcome
How the Strategy Works
Three Coordinated Tools.
One Outcome.
One Outcome.
The Goald & Co strategy combines corporate life insurance, an insured retirement plan, and the Capital Dividend Account into a single, tax-efficient structure designed to minimize tax at every stage.
Tool 01
COLI
–Corporate-owned participating whole life policy
–Funded with pre-tax retained earnings
–CSV grows completely tax-exempt inside the policy
–Death benefit creates CDA credit at death
–Reduces passive income pool — protects SBD
Tool 02
IRP
–CSV pledged as bank collateral at retirement
–Annual tax-free draws — not income, not withdrawals
–Policy keeps compounding while bank lends
–Loan repaid from death benefit at death
–Delivers $120K+/yr tax-free retirement income
Tool 03
CDA
–Death benefit above ACB credited to CDA
–CRA Form T2054 filed — capital dividend elected
–Capital dividend paid to shareholders — zero personal tax
–Estate receives wealth completely untaxed
–No deemed disposition, no probate on insurance proceeds
The Do Nothing Path
Every Dollar Taxed
Three Times.
Three Times.
Retained earnings left unmanaged face three distinct tax events before they reach your heirs.
Tax Hit 1
~50%
Passive income tax on investment returns inside the corporation annually
→
Tax Hit 2
~45%
Personal dividend tax when extracting retained earnings from the corporation
→
Tax Hit 3
~50%
RRSP / registered asset deemed disposed at death — fully taxable as income
Estate Outcome at Year 10
What Actually Reaches
Your Heirs.
Your Heirs.
Do Nothing — Estate Breakdown
Corporate passive investing + RRSP
Net corp value after passive tax$657,000
Less dividend tax to extract (45%)($296,000)
RRSP value (10 yrs, maxed)$428,000
Less RRSP deemed disposition at death($162,000)
Estate admin, probate, misc.($48,000)
Death benefit (no insurance)$0
Net to heirs
~$476K
Goald Strategy — Estate Breakdown
COLI + IRP + CDA coordinated structure
Death benefit paid to corporation$1,800,000
CDA credit (benefit − ACB)$1,590,000
Capital dividend to heirs (tax-free)$1,590,000
ACB taxable portion (after dividend tax)~$115,000
Remaining corp assets (non-passive)~$265,000
Tax on CDA distribution$0
Net to heirs
~$1.97M
Get Your Numbers
See This Built Around
Your Corporation
This comparison uses a sample business owner. Book a 15-minute call and we will model the exact same comparison using your retained earnings, your age, and your corporate structure.
Book a Strategy Call →
Sample illustration only. All figures are approximate and for educational purposes only. Actual results depend on tax rates, insurer dividend scale, policy design, ACB, corporate structure, and individual circumstances. This is not tax, legal, or financial advice. Strategies should be reviewed with your accountant and legal counsel prior to implementation. · goald.ca