Capitalizing on a Proactive Estate Freeze

Estate Freeze Lawyer, Toronto

Toronto Estate Lawyers For Wills and Estate Freeze

An estate freeze is one of the most complicated areas of tax planning. Numerous matters relating to tax, corporate law and matrimonial legalities may contribute to the circumstances. Accordingly, if you are thinking about conducting an estate freeze, you should consult an experienced estate freeze lawyer in Toronto.

Estate Freeze Lawyer, Toronto

Duensing Law advises business owners and individuals on estate freezes for the transfer of future growth to the next generation, minimizing probate fees and income tax upon death. Additionally, our probate administration expenses in Toronto will include a detailed plan for wealth preservation. As your advisors, we will closely work with your accountant to organize your estate efficiently, resulting in an estate freeze without adverse tax implications.

To prepare the right legal documents, it is recommended to work with a professional probate lawyer, as several value-added opportunities can be highlighted. Call Matthias Duensing at 416-601-4769!

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What does an Estate Freeze include?

Under the Canadian Income Tax Act, there are three different ways an estate freeze is implemented:

  • Share capital reorganization
  • Corporate reorganization
  • Trust freeze

The purpose of an estate freeze is to transfer the future increase in value of the assets that the initiator owns to their children, grandchildren, or in the case of a business, key employees. In Ontario, the initiator (also called the Freezor), retains the current value of their shares and defers the income taxes that have been placed on their capital gain at the time of the disposition. Additionally, the main goal of an estate freeze is to avoid capital gains as inflation can radically increase an individual’s estate tax burden upon death.

Prior to implementing an estate freeze, there are a number of factors to consider that should be closely evaluated with our trusted estate law firm. They include:

  • The likelihood of the corporation growing value in subsequent years;
  • The current financial state of the corporation and its ability to meet the economic requirements after the freeze;
  • Which trusted key employee will have the control of the corporation and whether they are able to implement the correct protocols for the company’s success;
  • Any required amendments to the corporation to allow for the implementation of fixed value preference shares;
  • The appropriate attributes of the fixed value preference shares, including redeemable and retractable shares

Begin your estate planning and increase your chances of a successful estate freeze by setting up a complimentary consultation today.

“I found Matthias to be genuine, thoughtful, prepared, conscientious, amenable to multiple last minute changes, reasonable, knowledgeable and he made a challenging process relatively easy to get through. I would not hesitate to recommend him and have already told friends that, when and if they need estate help, I’d be happy to make a recommendation.” 

-A.H, Toronto

Considerations prior to implementing an estate freeze

The estate freeze allows the taxpayer to manage the financing of their terminal income tax and probate fees upon death. For example, the taxpayer can obtain a life insurance policy with the death benefit equal to the income tax liability to be implemented upon death.

A strategic estate freeze includes one or more areas of an estate including:

  • A legal Will,
  • Establishing a guardian for living dependents,
  • Updating beneficiaries on plans including life insurance, valid IRA’s and RRSP’s,
  • Naming an executor of the estate to oversee the terms of the Will,
  • Setting up a Durable Power of Attorney to direct other assets and investments,

As an experienced probate and estate lawyer, Matthias Duensing will work closely with you and your business partners to achieve favourable objectives using highly effective tax estate freeze strategies that suffice the Canada Revenue Agency.

Our service is discrete, confidential, and cost-effective. 

Contact an experienced estate freeze lawyer in Toronto by reaching us by email or by telephone to arrange a consultation.

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