As a Canadian business owner, you’ve worked hard to build your wealth and secure your family’s future. But did you know that without proper estate planning, your estate could face double taxation when you pass away? This devastating tax burden could consume up to 75% of your wealth, leaving far less for your loved ones.

Here’s the good news: proactive estate planning can help you avoid these pitfalls, preserve your legacy, and protect your assets. Don’t wait until it’s too late. Read on to learn why integrating estate planning into your wealth management strategy is essential and how we can help you safeguard your financial future.

The Double Taxation Trap

When a Canadian corporation owner passes away without an estate plan, their estate is taxed twice on certain assets:

  1. Capital Gains Tax: When you pass away, your investments and business shares are deemed to be sold at fair market value. Any increase in value since you acquired them is subject to capital gains tax.
  2. Dividend Tax: After paying the capital gains tax, your corporation may also distribute its retained earnings to your beneficiaries, triggering a second round of taxation as dividends.

Combined, these taxes can claim over 75% of your wealth, leaving your family with only a fraction of your hard-earned legacy.

How Estate Planning Protects You

  1. Efficient Wealth Transfer Estate planning ensures that your assets are transferred according to your wishes while minimizing taxes and delays. Tools like corporate-owned life insurance, trusts, and segregated funds can make the process smoother and more tax-efficient.
  2. Avoiding Double Taxation With strategic planning, you can significantly reduce or even eliminate double taxation. For example, an estate freeze can transfer future growth to the next generation, locking in today’s tax liability. Additionally, tools like the Capital Dividend Account (CDA) can allow tax-free distributions to your heirs.
  3. Minimizing Probate Costs and Protecting Privacy Probate can be a costly and time-consuming process that exposes your financial details to the public. By setting up a living trust or using other estate planning tools, you can avoid probate altogether, ensuring a quicker and more private asset transfer.
  4. Control Over Legacy and Distribution Proper estate planning allows you to dictate how and when your assets are distributed. For example, you can use trusts to:
    • Protect minors or beneficiaries with special needs.
    • Support charitable causes.
    • Ensure smooth business succession.

Start Planning Today with Royal Rock Wealth

Integrating estate planning into your wealth management strategy isn’t just smart—it’s essential. At Royal Rock Wealth in Richmond, Metro Vancouver, we specialize in helping business owners like you navigate complex tax rules and protect their legacies.

Our team of expert insurance and wealth advisers can:

Don’t let double taxation claim your life’s work. Contact us today to book a consultation and take the first step toward securing your financial future.

Your legacy is worth protecting. Let’s plan ahead, together.