Preserve Your Life’s Work. Protect Your Family. Maximize the Value of Your Business Transition

As a business owner, you’ve poured time, energy, and resources into building something of lasting value. But what happens when it’s time to transition your business—whether through retirement, sale, or succession?
Without the right planning, much of that value can be eroded by taxes, legal disputes, or a lack of liquidity at the worst possible time.

The Hidden Tax Trap at Death

When a business owner passes away, the Canada Revenue Agency treats their shares as sold at fair market value. That “deemed disposition” triggers a significant tax bill—even if the business stays in the family.
Many business owners are surprised to learn that their estate may owe hundreds of thousands, or even millions, in capital gains taxes just to keep the business intact.
Without available cash, your estate may be forced to sell business assets, trigger loans, or pass along a financial burden to your heirs.

Planning Ahead to Protect the Future

The good news? With the right planning, you can:

Ensure your estate has the cash it needs, when it needs it most
Transfer corporate wealth to the next generation with minimal tax
Preserve the full value of your business for your family
Avoid unnecessary sales, loans, or rushed decisions under pressure

Create Certainty with a Predictable Tax Strategy

One of the most effective tools in this type of planning is implementing an estate freeze—a technique that locks in the value of your current shares and allocates future growth to the next generation. This helps make your eventual tax bill more manageable and predictable.
Pairing this strategy with a corporate owned life insurance policy ensures that your estate can meet that tax obligation in the most tax-efficient manner—without compromising the business or your family’s financial future.

Using Corporate Savings to fund your Retirement Tax-Free

Many owners also want to ensure their financial independence in retirement—without relying solely on the sale of their business. With the right long-term strategies, it’s possible to create tax-free retirement income from corporate owned-life insurance while still preserving your estate plan and protecting your family’s future.

Prevent Family Conflict Before It Starts

Succession planning isn’t just about money—it’s about relationships. Whether you have children in the business or not, clear plans and liquidity can help avoid disputes and ensure everyone is treated fairly. Structured buyouts and inheritance equalization are just two ways to keep the peace and preserve your family harmony.

Your Legacy, On Your Terms

You’ve worked hard to build your business. Now it’s time to protect it. The right planning strategy can help you:

• Minimize taxes
• Maximize what you pass on
• Protect your family
• Preserve your business
• Unlock tax-free income for your retirement

This is about outcomes. And every business owner deserves a plan that protects what they’ve built.

Ready to explore what’s possible?

Talk to your Capcorp advisor about how to structure your estate, retirement, and succession plan for the future you want—and the legacy you deserve.