Estate & Legacy
From what you own, to what you pass on.
Passing wealth on isn't the last step. Tax, wills, beneficiaries, and the business need to be on one map well before they're needed.
01
The Tax Cost of Passing It On
Passing wealth on isn't only about who receives it — it's also about how much tax comes first, and what pays it.
Deemed Disposition
When someone passes away, registered accounts and appreciated assets are generally treated as sold at market value, with the tax landing in a single final return. Assets left to a spouse can usually be deferred.
Who Pays the Bill
The tax is paid by the estate. If the estate is short on cash, a home or company shares may have to be sold to cover it. We size the bill in advance and arrange the funds to meet it — life insurance is one common way.
Company Money, Taxed Twice?
When company assets pass to the next generation, they can be taxed twice — once when the shares change hands, and again when the company pays the money out to shareholders. Corporate-owned life insurance is a common way to ease that. The payout is received by the company tax-free, and the portion above the policy's adjusted cost basis (ACB) is credited to the company's capital dividend account (CDA) — in effect, a tax-free channel that lets that amount be paid to shareholders, or their estate, as a tax-free capital dividend. The longer a policy is held, the lower the ACB usually becomes, so more can typically pass through. The exact amount is calculated by your accountant and elected with the CRA.
02
Wills, Trusts & Beneficiaries
Making sure your assets pass to the people you intend, with as little friction as possible.
Wills & Trusts
A will directs who receives what; a trust can control when and how. Your lawyer drafts them — my part is making sure the beneficiary designations on insurance and investments say the same thing.
Beneficiary Planning
Named beneficiaries on policies and registered accounts pass outside the will and outside probate. Two things to watch: designations go stale after a marriage, a divorce, or a death in the family; and when an RRSP or RRIF goes directly to a named beneficiary, the tax on it may still fall to the estate — leaving the other heirs with less than intended.
Probate
In Alberta, probate fees are modest; the real costs are time and publicity. Assets with a named beneficiary stay out of the estate, skip probate, and never appear in the public record.
03
Business Succession
Planning the transition of a business to family, partners, or a new owner.
Succession Structuring
Whether the business goes to family, a partner, or an outside buyer changes the structure entirely. Deciding the destination early is what makes the rest of the plan possible.
Shareholder Agreements
The agreement should say what happens if a shareholder dies, becomes disabled, divorces, or simply wants out — and where the money to buy their shares comes from.
Valuation & Funding
A buy-sell clause is only as good as the funding behind it. Insurance is a common source, so the remaining owners are not left looking for cash at the hardest possible moment.
04
Intergenerational Transfer
Passing on wealth in a way that supports the next generation without creating conflict.
Legacy Planning
Start from what you want the money to do — support a grandchild’s education, keep a property in the family, fund a cause. The structure follows from the intention.
Gifting Strategy
Giving during your lifetime lets you see the difference it makes and can reduce the eventual estate, but it may have tax consequences. We first work out how much you can give without affecting your own security.
Fair Isn't Always Equal
If the business goes to one child, what do the others receive? Insurance is a common way to provide comparable value to the other heirs — fair doesn't always mean equal.
Family Conversations
Many inheritance disputes come from surprise, not unfairness. A conversation with the next generation while everyone is still here prevents a good many of them.