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CORPORATE ESTATE PLANNING

Every business owner must address the issues related to distributing ownership of his or her business, or the assets generated by that business. As a business owner, planning for how you want your personal assets to be distributed after your death can be difficult. You have to address both your individual and family needs, as well as the needs of your company. 

In the event of your demise and your family’s assets and income are linked to a business, ensuring that your business remains operable. 

What is Corporate Estate Planning and what does this mean for business owners?

Estate planning is the process by which you plan to transfer your personal and business assets in the event of a death. During this process, you work towards minimizing the taxes your estate will have to pay. It will be important to keep in mind that this is an ongoing process that evolves as your wants, needs and business change.

In the event of your demise without a Will – otherwise known as having passed away ‘Intestate’, your specific provincial law will dictate how your assets will be distributed. This can result in a heavy taxation.

In general, regardless of one’s situation or short/long-term goals, estate planning is meant to:

  • Ease stress and provide a safe guard for family in the event of disability or death

  • Reduce the business’ liability to be taxed and protect the value of the company

  • Ensure that there is liquidity to cover business-related expenses so that the business can continue uninterrupted (whether it is sold or kept in the family)

  • Plan for succession, transfer or sale of the owner’s share in the company in the event of retirement, disability or death

There are many steps to effective estate planning and whether they all apply to you will depend on your personal circumstances.

Some of these steps include:

  • Ensuring you have a Will or that yourWill is up-to-date

  • Appointing an appropriate Executor/Executrix

  • Establishing an Enduring Power of Attorney and Personal Directive

  • Prepare your spouse and family financially in the event of your unexpected disability or death

  • Developing a plan for equitable and tax-efficient distribution of your assets

  • Determining shareholder/partnership buy-sell agreements if applicable

  • Succession planning

Our team specializes in estate planning and we will review your unique circumstances to provide tailored solutions!

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