ESTATE FREEZE: Tax Planning
Neufeld Legal Professional Corporation
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THE ESTATE FREEZE

Optimizing opportunities provided by Canada's tax laws.

An estate freeze is primarily undertaken with the intent of transferring the future growth of an asset (i.e., private company shares, investment portfolio, family cottage) to other taxpayers, while concurrently converting the current value of that particular asset to a fixed amount for the original owner. The original owner thereby freezes his/her interest, while conferring unto his family (i.e., spouse, children, grandchildren) the future growth associated with that particular asset.

When effectively structured, the original owner need not immediately divest control over the particular asset, but merely the future beneficial gains associated with the particular asset. With respect to a qualified small business, the original owner's own tax liability associated with the asset is capped (which tends to be significant given that said owners are typically of significant wealth and have a propensity to use all of their lifetime personal capital gains exemption). Conversely, the beneficiaries of an estate freeze involving a qualified small business have the potential the potential to utilize their lower tax rates together with their own lifetime personal capital gains exemption (such that where there are multiple beneficiaries, multiple use of the exemption may be undertaken, as opposed to a single usage, unless already expended on a prior disposition). 

For knowledgeable and experienced tax law representation for estate freezes and other tax planning strategies, contact tax lawyer Christopher R. Neufeld at 403-400-4092 (Calgary, Alberta) / 416-887-9702 (Toronto, Ontario) or Lawyer@LawTax.ca.

NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as legal advice. You should not rely upon, or take or fail to take any action, based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. The law firm of Neufeld Legal PC would be pleased to discuss legal matters referenced in this website upon their retention in accordance with applicable requirements pertaining to client retention by this law firm.

 

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Tax Lawyer Christopher Neufeld with the business law firm of Neufeld Legal Professional Corporation, is admitted to practice law in Alberta and Ontario (Canada) and New York State (United States of America).  Christopher's legal practice focuses primarily on business law, in particular corporate commercial transactions and contract work  - directed at transactional tax optimization and effective tax planning. The content of this website is purely for informational purposes and should not be relied upon - as you should consult a lawyer with respect to the specifics of your particular legal matter.  Please review our legal disclaimer and privacy policy prior to contacting us and be advised that contacting us does not create a lawyer-client relationship. National headquarters: 1600, 144 - 4th Avenue SW, Calgary, Alberta. COPYRIGHT 2010-12.

Business Tax Planning: Corporate Tax Planning; Multi-Jurisdiction Tax Planning; Offshore Tax Planning; Business Succession Planning; Tax Loss Planning / Utilization
Personal Tax Planning:
Individual Tax Planning; High Wealth Tax Management; Family Succession Planning; Estate & Gift Taxation; Non-Canadian Tax Planning

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