Similar to an architect, our primary role is to facilitate the design and the implementation of your comprehensive estate plan. As senior Trust and Estate Practitioners, we are well-versed in the various methods used to achieve a business owner’s unique objectives. First and foremost, we present the various options that are available. By providing a thorough understanding of the estate planning process, the most suitable solutions can be determined within the scope of a business owner’s unique circumstances. Once the best course of action is established, we coordinate the implementation of the estate plan in collaboration with the most qualified team of professionals available. This team may be comprised of a business owner’s current team of lawyers, brokers and accountants or of our capable in-house experts.
The following is an overview of comprehensive estate planning services offered to business owners by our firm:
Will Planning
Will planning is the most traditional approach to designing an estate plan.
Will planning should be comprised of three key legal documents: a will, an enduring power of attorney and a personal directive. Enacted upon death, a will provides instructions for the distribution of your estate as well as appointing an executor to act on your behalf. By contrast, an enduring power of attorney and personal directive both come into effect during your lifetime in the event of that you are unable to manage your affairs. An enduring power of attorney determines who will administer the financial side
of your estate; a personal directive appoints an agent to manage non-financial
matters, such as your personal care and health choices
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Trust Planning
When applied under the right conditions, trusts can offer a remarkable sum of benefits to business owners.
Essentially, a trust is a private legal vehicle that holds ownership of an asset on behalf of a beneficiary. Trusts offer a remarkable sum of benefits, such as matrimonial and credit protection. Moreover, when an owner puts a company into trust, he or she can continue to exercise control over the business. A trust is often used in conjunction with an estate freeze. When both a trust and estate freeze are utilized within a succession plan, not only are assets protected, but unnecessary taxes may also be deferred or avoided completely.
Trust planning is often a missed opportunity for most Canadians. Although trusts have been available in Canada for quite some time, it is only until quite recently that our country has contained enough wealth to take advantage of trust law. For countries with an extended history of prosperity, such as the United States and Britain, trusts have been in use for hundreds of years.
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Business Succession
Proactively planning a clear and timely business succession scheme will help to secure your company’s future prosperity.
Remarkably, seventy percent of all family businesses in Canada fail to properly succeed to the next generation due to poor planning. In order to avoid unnecessary complications, it is important to use the most qualified professionals available.
Our planners have an extensive understanding of the structures that regulate business transfer and succession. Acting as an unbiased consultant, a planner devises a competent exit strategy based upon a business owner’s unique retirement objectives. Once a realistic course of action is determined, a planner guides and supports the transition process from beginning to end.
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Tax Planning
Establish a solid tax strategy to reduce tax implications within your estate.
When proactively planning an estate, a main focus is often tax savings. Each year, countless individuals pay an excessive amount to Canada Revenue Agency. Although tax is an unavoidable reality within even a well-composed estate, by using the right tools and knowledge, this sum can be significantly reduced or deferred.
An estate freeze is a useful concept that we often utilize within tax planning. Once a business is put into an estate freeze, any future growth of all or part of the current total value is transferred automatically to the next generation. As a result, taxes owed upon the business that may hinder its smooth succession are deferred
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Generational Planning
Transfer your family business to the next generation in both a tax efficient and harmonious manner.
A comprehensive multi-generational strategy can produce a multitude of benefits for business owners and their families. In addition to substantial tax advantages, generational planning may determine the nature of a family's future dynamics. Acting as an unbiased third-party, a MacMillan planner provides guidance and objective advice to everyone involved in the business transference process. By addressing any underlying issues before they become real hindrances, discord amongst loved ones can be easily prevented.
Case Study:
Client Challenge:
A wife-and-husband team running a successful family business had begun to plan their retirement strategy. They had two adult children, one working in the family business and the other employed in a company abroad. The child that worked abroad had never expressed any interest in the family business. Consequently, this led them to assume that she was not committed to its future.
Client Solution:
Upon interviewing the two children, we discovered that the exact opposite was true. The child currently working within the family business intended to end his involvement once the parents were no longer part of the day-to-day aspect of the company. By contrast, their daughter was very passionate about her family’s business. In fact, her education had been pursued in expectation of continuing-on her family’s legacy. Our clients concluded to give their son a cash settlement upon their passing. Currently, the daughter has begun grooming under her parents in order to succeed the business.
Due to the daughter’s innovative business practices, the family business has been projected to grow quite substantially. In order to ensure proper succession, the family business was put into trust and the current business value was frozen within the parent’s estate. This method will effectively protect both parents and children as well as defer a substantial amount of tax on the growth of the business.
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Asset & Investment Protection
Protect your business assets and investments from undo risk.
Business assets and investments should ultimately supply business owners and their families with a concrete source of income for retirement. Unnecessary losses due to tax, market fluctuation or other external forces, such as divorce, bankruptcy or a lawsuit, can be avoided if the proper precautions are taken. There are a multitude of devices available that can shield your estate from undo risk. As part of our comprehensive estate planning services, we thoroughly review your current assets and investments in order to verify that they are structured appropriately and in the most secure manner possible.
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The concepts and ideas presented are for information and explanatory purposes only; they are not suitable for all circumstances. Obtain professional advice prior to initiating any estate plan, including the use of the concepts expressed herein.
