Tax Policy Shifts and Business Structuring
The Tax Code Holds More Power Than Most CEOs Realize
There’s a lot of noise right now about tax hikes and expiring provisions. And while headlines focus on the sunset of the Tax Cuts and Jobs Act in 2025, the real risk for business owners isn't what’s changing—it’s what’s already available but remains unused.
Here’s what most firms don’t realize: the tax code already contains strategic pathways for business owners to protect and multiply capital—without dancing in gray areas. Three critical frameworks—TEFRA, DEFRA, and TAMRA—exist specifically to support advanced financial structures for high-income earners and corporations.
TEFRA (Tax Equity and Fiscal Responsibility Act) outlines rules that govern employer-owned life insurance, ensuring these policies are structured in a way that can offer favorable tax treatment when done correctly.
DEFRA (Deficit Reduction Act) helps define whether a policy qualifies as life insurance under IRS guidelines—unlocking powerful tax advantages like tax-deferred growth and tax-free distributions.
TAMRA (Technical and Miscellaneous Revenue Act) draws the line between a legitimate policy and a “Modified Endowment Contract,” protecting your ability to access funds tax-efficiently over time.
In plain English? These codes let you redirect capital inside the business into tax-advantaged vehicles—and in doing so, fund retirement, reward key talent, and create multi-generational stability... all with dollars you’re already earning.
But most firms miss it—either because no one told them, or the person advising them didn't understand how to apply the code strategically.
That’s where we come in.
At Legacy Builders HQ, we don’t sell financial products. We design long-term, code-backed strategies that grow with your business and protect it from unnecessary losses. Whether through Executive Bonus Plans, Split Dollar Agreements, or other advanced structuring tools, we tailor each solution to your company’s exact stage, goals, and cash flow.
This isn’t about "beating the system." It’s about finally using the system the way it was written—for builders like you.
