Estate planning is not only about deciding who receives property. For families with corporations, investments, real estate or other significant assets, the plan should also address tax, control, liquidity and administration. Barr LLP advises individuals, families, business owners, estates and trustees on trust and estate tax planning in Alberta, beginning with the client’s objectives. Those objectives may include supporting a spouse, transferring a business to the next generation, treating children fairly, protecting a vulnerable beneficiary, charitable giving, or reducing the risk of conflict.
Tax planning for death and succession:
- Canadian tax rules generally treat a person as having disposed of capital property immediately before death, which can create a substantial tax liability even when the family does not intend to sell the assets.
- A good plan identifies that exposure, considers who will have funds to pay it, and coordinates the will with corporate and insurance arrangements.
- For business owners, succession planning may involve an estate freeze, a family trust, new classes of shares, or a future purchase by family members, managers or co-owners.
Wills and trusts:
- A tax-informed will can provide flexibility to executors and reduce the chance that tax rules defeat your intentions, including testamentary trusts, spousal trusts, trusts for children or vulnerable beneficiaries, charitable gifts, and multiple wills.
- An inter vivos trust, established during life, can be useful for business succession or long-term family planning, but it brings ongoing legal and tax obligations, including annual filings and the trust’s 21-year deemed disposition date.
- We advise on trustees, beneficiaries, trust terms and administration, and we do not recommend a trust unless its benefits justify its cost and complexity.
Post-mortem tax planning:
- Executors and beneficiaries can face overlapping tax at the shareholder and corporate levels, deadlines for elections, and uncertainty about the tax cost of property.
- Post-mortem strategies may be available to reduce double taxation or carry losses back to the deceased’s final return.
- We advise on post-mortem corporate transactions, distributions from estates and trusts, and clearance certificates.
Trust and estate planning should be reviewed when ownership, family relationships, residency or tax law changes, and before a business sale or reorganization. We provide practical advice for clients who want to preserve wealth, manage tax and leave clear instructions.
