Diane Built Tax-Free Wealth and Expanded Her Portfolio
A property developer leveraged life insurance for tax-free growth, expanded credit, and legacy planning.
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Background
A successful property developer with a holding company and several commercial and residential properties wanted to build a capital base for future projects. Her bank required life insurance as collateral for loans. With two school-age children, he also needed a strategy to protect and pass on her growing real estate portfolio without triggering massive capital gains tax. The goal was to build a tax-efficient capital pool, maintain liquidity, and ensure the family could keep the properties after her passing.
Goals
- Build a tax-free capital base.
- Access liquidity for real estate projects.
- Preserve properties for her children.
Challenge
Taxation & Financing
As her real estate portfolio grew, so did the potential tax liability upon her passing. Retained earnings in her holding company faced high tax exposure, and the bank's requirement for life insurance added complexity. Traditional financing limited her ability to access capital efficiently. He needed a strategy to grow her wealth tax-free, access liquidity for property investments, and secure her family's legacy without triggering substantial estate taxes.
Solution
Wealth Multiplier
She implemented the Wealth Multiplier Account™, over-funding a participating life insurance policy to build a tax-free capital pool. This policy was collateralized with a Canadian bank, which provided a 100% LTV line of credit based on the cash values. This setup allowed her to:
Grow wealth tax-free while avoiding passive income tax.
Access capital for property investments without selling assets.
Strengthen banking relationships, unlocking additional credit for her projects.
Results
Post-Implementation
Since implementing the Wealth Multiplier Account™, the developer:
- Built a large, tax-free capital pool through over-funded life insurance.
- Secured a 100% LTV line of credit against policy cash values for real estate projects.
- Strengthened relationships with her bank, expanding credit facilities for her business
- Ensured her children can inherit the real estate portfolio tax-efficiently.
This strategy provides liquidity, tax efficiency, and secured her family's real estate legacy.
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Client Testimonials
Clients who have worked with us using similar strategies.
"We worked specifically with Jordan who was knowledgeable, thorough, and patient."
We worked with Safe Pacific Financial to help us find the right life Insurance policy for us, and we are very happy with the service they provided. We worked specifically with Jordan who was knowledgeable, thorough, and patient with our many questions. We would certainly work with Safe Pacific Financial again and would recommend them to friends and family.
"Jordan was amazing to work with!"
Jordan was amazing to work with! He was patient and understanding when it came to answering all my questions and concerns. I highly recommend Jordan for any financial needs!
"Jordan was able to explain them in a simple and digestible manner."
My wife Brooke and I had a great experience working with Safe Pacific and their team. Although some of the insurance industry and the investment products can be complex, Jordan was able to explain them in a simple and digestible manner which really helped us to understand the long term value. I would highly recommend the Safe Pacific team and we look forward to working with them more in the future.
"Had a great experience with Safe Pacific."
Had a great experience with Safe Pacific. As someone who doesn't understand the business of insurance, I was not stressed at all with the process and Jordan and his team made it smooth and explained the entire process. They were responsive in a timely manner and helped me get a great deal on my disability insurance. Would highly recommend!
"Would highly recommend their services and support."
Jordan and Megan were very helpful in helping my partner and I secure term insurance and CI insurance. We talked with both of them about our current situation and context, and Jordan was able to walk us through the options and clearly laid out his recommendation. He answered all of our questions and followed up promptly as we moved along with the selection and registration process. Would highly recommend their services and support.
"They always make me feel like a priority."
The great thing about working with Safe Pacific is the personal touch they add to the service and how they always make me feel like a priority. Thanks Laurent and Rob for taking care of me.
"I highly recommend them to my colleagues."
I have worked with Robert Trasolini and Laurent Munier several times and I find them extremely helpful when it comes to Life, Critical illness and Disability insurance. They are able to explain things clearly and are really great guys to work with. I highly recommend them to my colleagues, clients and friends.
"Every step of the process."
Robert recently helped me acquire life and critical illness insurance. Not only did he explain every step of the process and walk me through it in a thorough and detailed manner, but Rob is great at taking complex terms and concepts and explaining them in simple, easy to understand manner.
