Corporations (Unlimited)
Corporations are facing rising benefit costs combined with more restrictive contract wording in group insurance. With a Health & Welfare Trust, Corporations can take advantage of a new approach that could save up to 30% and provide increased flexibility and control. No health questions or age limits. This is not insurance.Who is Covered
Owners, active shareholders, employees and spouses (including common-law) and children who have not attained age 21, unless registered as a full-time student at an institute of higher learning and has not attained age 25.Unincorporated/Self-Employed Individuals (Limits)
Before 1998, there were only two ways for Self-employed individuals to pay for medical and dental expenses:- Group Insurance - many services are not covered and are subject to both deductibles and co-insurance, (i.e.; Basic Dental 80/20).
- Pay cash - no or small tax credit based on CRA's 3% medical tax credit rule.
The example below illustrates that with a Health & Welfare Trust you receive a larger tax deduction and therefore pay less tax. This example is based on net income of $50,000 per year with family medical expenses of $1,600. Based on a combined Federal and Provincial Income Tax rate of 25%.
Based on the example above, you can FULLY TAX-DEDUCT $1,760 instead of receiving a $25 tax credit - not only this year, but also every year for the rest of your life. Your lifetime savings could be in tens of thousands of dollars.
| CLAIMING ON PERSONAL TAX RETURN |
|
WITH A HWT TRUST | ||
| Expenses | $1,600 | Expenses | $1,600 | |
| Deduct (3% of net income) | $1,500 | Admin Fee (10%) | $ 160 | |
| Expense available for credit | $100 | Tax-Deductible Total | $1,760 | |
| Non-refundable Tax Credit |
$25 |
Tax Deduction |
$1,760 |
|
| Plus one time set-up fee |
$200 |
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