Estate & Succession Tax Planning

For most owner-managers, the business is the largest asset in the estate — and the most exposed to tax when it changes hands. RN Canada's estate and succession tax planning service helps Alberta and British Columbia owners pass wealth and ownership to the next generation or to a chosen successor in a tax-efficient, deliberate way. The work is forward-looking by necessity: most of the tools only work if they are put in place well before a sale, a transfer or a death.

What RN Canada does

• Estate freezes. Fixing the value of your current interest so future growth accrues to the next generation or a family trust, capping the tax that would otherwise crystallise on death.
• Post-mortem planning. Structuring to avoid double taxation on shares held at death, where the estate and the corporation can otherwise both be taxed on the same value.
• Family trusts. Using a trust to hold shares for the benefit of family members, to multiply access to the capital gains exemption and to manage control during a transition.
• Income splitting. Planning remuneration and ownership within the bounds of the tax-on-split-income rules so family income is allocated efficiently and defensibly.
• Charitable-gift structuring. Coordinating planned giving — including gifts of shares or other property — so philanthropic goals and tax outcomes work together.
• QSBC and the lifetime capital gains exemption. Positioning shares to meet the qualified small business corporation tests so the lifetime exemption is available when shares are sold or transferred.

Key facts we work with

The lifetime capital gains exemption (LCGE). For dispositions of qualified small business corporation shares on or after June 25, 2024, the LCGE limit is $1,250,000 per individual, and it is indexed from 2026. Source: Line 25400 – Capital gains deduction — Canada.ca. Because the exemption applies per individual, structuring ownership across a spouse or a family trust can multiply the gains sheltered on a sale — but the QSBC tests have to be met, which takes planning ahead.

Capital gains inclusion rate. Capital gains are included in income at 50%. (The previously proposed increase to a 66.67% inclusion rate was cancelled and does not apply.) Source: Capital gains — Canada.ca.

Intergenerational transfer rules. Rules exist that let a genuine transfer of a business to the next generation be treated more favourably than an arm's-length sale. Introduced through Bill C-208 and then tightened by Bill C-59 for transactions on or after January 1, 2024, these rules now carry stricter conditions around control, involvement and timing. We plan within them rather than around them.

Who it's for

This service fits owner-managers thinking about retirement or the eventual transfer of their business, families that want ownership to move to the next generation tax-efficiently, owners holding shares that could qualify for the lifetime exemption, and anyone whose estate is dominated by a single private company. It suits Alberta and BC owners who would rather plan the transition on their own terms than leave it to chance.

How RN Canada helps

We map your goals — retirement, family transfer, sale or philanthropy — against the tax tools that fit, then design the freeze, trust or exemption strategy and coordinate it with your lawyer and other advisors. Our founder, Ozgur Duymaz, holds a Ph.D. in accounting and finance and is a CPA (Canada), ACCA (UK) and CMA (US). To start planning the transfer of your business and estate, talk to us or browse the full services overview.

This page is general information, not personalized tax advice. Speak to us about your specific situation.