Family Enterprise Canada
February 21st, 2022
You have decided you need the liquidity from the sale of your family business, and do not intend to set up a family office. You’ve defined what the liquidity will be used for, and also the roles for the family to carry on as a redefined family enterprise. Now you want to ensure that your estate plan is technically sound and meaningful.
Estate Planning is an essential part of the continuity plan of any Family Enterprise. Demographically, our society is rapidly aging, and also has far more wealth to leave behind to heirs than ever before. Income tax, estate tax and Provincial probate considerations will affect just about every successful family.
The main goals of estate planning are therefore to minimize or defer taxes during lifetime, provide an orderly transition of assets/affairs at death or on a serious disability, minimize or defer taxes arising at death, minimize probate fees (for Provinces where they apply), and minimize family disputes.
Some of the leading estate planning tools in Canada include:
- Up-to-Date Wills / Multiple Wills
- Powers of Attorney for 1) Personal Care and 2) Property ownership
- Family Trusts (inter-vivos and testamentary trusts)
- Alter Ego Trusts / Joint Partner Trusts
- Philanthropic Giving
- Shareholders’ Agreements
- Life Insurance
- Beneficiary Designations / Joint Ownership / Joint Accounts
- Gifting Unappreciated Assets During Lifetime
- Estate Freeze of Appreciating Assets Held in a Corporation
Estate planning is the essential foundation of every succession and continuity plan. Please speak to your financial and legal advisors to develop an estate plan based on your family’s precise circumstances. And don’t forget to update your estate plan from time to time as circumstances change (e.g., death, divorce, new child, etc.).
Family Enterprise Canada is a dynamic community of business families and certified Family Enterprise Advisors. Our supportive community provides shared wisdom, family-focused advice, world-class expertise and education to address the realities and opportunities unique to family enterprise — helping to achieve stronger outcomes for both enterprising families and their enterprises.
Family Enterprises Canada
