There may be times when there is a need to transfer a life insurance policy from a corporation to an individual shareholder or from one corporation to another. At a recent Canada Life and Health Insurance Association meeting, the Canada Revenue Agency (CRA) was asked to clarify what the result would be if a corporation paid a dividend in-kind through the transfer of a life insurance policy from the corporation to its shareholder.
CLU Comment: Can a Corporate-Owned Life Insurance Policy be Paid as a Dividend-In-Kind?
