Strategies include:

• Income splitting. Using a family trust allows for returns on investments held by the trust to be distributed to beneficiaries with lower tax rates.
• Deducting mortgage interest. Using available cash to pay off a non-tax-deductible mortgage and then refinancing the property to purchase an income producing property or securities make interest payments tax deductible.
• US asset holdings. Monitoring US asset holding to avoid being subject to US estate tax.
• Using a corporation. There is upwards of a 3.36% tax deferral advantage to investing through a private corporation over holding them personally.
• Life insurance on children. Acquiring life insurance on the children allows wealth to accumulate on a tax-deferred basis for ultimate capital transfer.
• US real estate. Using a Trust to hold US real estate is effective as it avoids probate, provides liability protection, preserves the owner’s control, addresses possible incapacity, and protects the heirs from US estate taxation after the owner’s death.
• Registered accounts. Maximizing allocations to registered accounts like TFSAs allow assets to grow tax free