Recently Incorporated but want to start winding company down in 10 years instead of using corporate life insurance to offset taxes to family after death.
Looking for opinions. Spouse and I (mid 50's) retired with DB pensions and had a sole proprietorship on the side. It has outgrown our expectations and put us in the highest tax bracket. We Incorporated to smooth the tax over a decade or so, we only want to work for about 5 more years (3-400k/year profit). We just don't want to lose half to taxes up front and expect to draw dividends slowly at the high 30ish% marginal tax rate as the cash grows and is invested in the corp. The thought of doing Corp taxes until death and paying the accountant and maybe lawyer and a Corp insurance premium to offset taxes after death in an inheritance for kids over (if lucky) 30-40 years seems unnecessary.
We will probably help our kids a bit financially as the withdrawals come out but expect to reinvest most into our personal investments.
Note: RRSP and TFSA are maxed. 1+ million liquid, no debt. Pension income exceeds our basic COL. In downturn years we just won't travel as much.
Thanks everyone