If you’re a shareholder in a private corporation, you may have already started thinking about the legacy you’ll leave behind. One aspect that shouldn’t be overlooked is the potential tax impact on your estate upon death.

Without proper planning, the death of a shareholder of a private corporation has the potential to result in significant tax consequences, including the risk of double taxation. This happens when two separate taxes apply: a capital gains tax on the deemed disposition of your shares at fair market value, and tax on dividends distributed from the corporation to your estate.

Our latest report outlines several tax planning techniques that may help reduce this impact, such as the loss carry-back, “pipeline” transactions, and estate freezes.

For those who hold shares in a qualified small business corporation, the use of the Lifetime Capital Gains Exemption (LCGE) can also be a powerful tool to help reduce taxes on the deemed disposition shares at death.

Each of these strategies requires careful consideration and professional guidance. Our role is to help you navigate your specific situation so you can make informed decisions for your estate and your future.

Read the full report here: Death of a Shareholder

If you have questions about how these strategies may apply to your situation, please don’t hesitate to reach out.