When you set up your corporation, you knew what you hoped to achieve—higher savings, lower taxes, and more investment options. Now you need to make sure your estate plan doesn't make the Canada Revenue Agency the chief beneficiary of those achievements.
Estates involving a corporation or holding company are more complex to administer, and could be taxed more highly due to the potential for double taxation. One level of tax occurs upon your death when you are deemed to have disposed of your corporation's shares at their fair market value—potentially resulting in a taxable capital gain to be reported on your final personal income tax return.
A second level of tax could occur when the corporation pays dividends to your estate (in its capacity as shareholder) or if your executor decides to wind-up the corporation. (In Quebec a liquidator plays this role.) Appropriate estate planning can help mitigate the impact of this potential double tax dilemma and can help you maximize the after-tax value of your estate.
In general, the physician offices run for one individual and then close when the founder retires or dies.
We call the dental business a business with high dependence, the fact that the business will end pending the your retirement or death, does not mean the business should ignore Estate Planning. During the years the business is in existence, steps must be taken to minimize the risk of liability arising during business activity.
To schedule your data meeting (60 minutes) to explore every aspect of your wealth & estate planning… focus in your wealth accumulation, de-accumulation and estate planning to preserving your legacy –
Please, contact us 416-549-5900 or email us at pedroc@corteswealthplan.com
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