Planit:Disposition Strategy

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In this Video you will Learn...
How do I properly show the disposition strategy of my client's personal use or business asset in the event of retirement or death?
• Detailed account disposition data entry
• Created revenue stream Pensions and Other Revenues

Keep on Track! Continue training on...
Why You Should Use Planit Modular Planning
Life Planning Integrated Planning
Assets and Liabilities Screen Will Information Screen

Other Related Topics
Business Asset and Disposition Revenue Add an Asset (Canada) Add an Asset (Malaysia)
Add a Personal Use Asset Add an Account (Canada) Add an Account (Malaysia)
Liabilities on Death Default Revenues Holding Company (Canada)


The material in this video may differ somewhat from what you see on your site due to difference in version, jurisdiction, corporate content or access level. Regardless of these differences most of the core functions are consistent across all sites, so you'll be able to benefit by and large from what you learn in this video.


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Adding Business Assets

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When adding a Business/Other account, you can define the appropriate type by using these new options. When you use the Business/Other account type, you also will be able to identify the disposition strategy for the holding that will in turn generate records automatically on the Pensions and Other Revenues screen.

The Disposition Strategy box only appears when it’s a Business/other type asset. It includes data fields for the following information:

  • Target date for disposition of the asset
  • Payout period (typically 1 year)
  • A growth assumption you want to make for dispositions that take place over several years.
  • Any Capital Gains Exemption available to offset taxes on the disposition of the asset.
  • You’ll identify the marginal tax rate that would apply to any taxable gains. This is entered just so the report you can generate recognizes the taxes on the year by year projection.
  • And to assist with the auto model process you can identify how the revenue stream will be impacted by a delay in the client’s retirement date. This is pertinent when the sale of the business is tied to the client’s retirement target date.
  • Finally you’ll notice that you can define how the disposition strategy will be impacted by the client’s death or disability. You can retain the strategy as it is, change the strategy to “Sell Immediately” or even totally ignore the disposition on the death or disability of the client.

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Once you have finished your entries, you can click on the “View Report” button and view a report that shows the year by year disposition projection. The convenience of this process is to have all the necessary records created for you in the Pensions and Other Revenues screen.


See to the right an example for ABC Manufacturing. The record for disposition in the Retirement scenario shows the asset being disposed of in 2018 for its value of $2.6 million. However the two records created for Death and disability show disposition in 2009 at the current value of $2,000,000. Also the appropriate taxable percentage is determined for each disposition scenario.

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When adding disposition strategies for joint assets, create two Business/Other accounts, one owned by the client and the other by the spouse, and each containing the appropriate amount of funds. Each account should have it's own disposition strategy, providing the appropriate amount of money to either the client or spouse. This must be done in order to properly calculate capital gains taxes.