Corporate clients • The method for repayment of the loan balance using the tax-free death benefit depends on the structure in place. This is described in more detail in the next section. Regardless of the structure, the full amount of the death benefit minus the policy’s adjusted cost basis (ACB) just before death can be posted to the corporation’s capital dividend account (CDA). Since the ACB of a policy decreases as the insured person nears life expectancy, in some circumstances the full death benefit could be credited to the CDA. • The CDA can be used to pay tax-free capital dividends out of the corporation. Any remaining portion of the death benefit that didn’t provide a CDA credit, representing the ACB of the policy, can be paid as a taxable dividend.