Estate & trusts · London, Ontario
Estate planning, trusts & succession planning in London, Ontario
Family trusts, estate and succession planning, terminal tax returns and post-mortem pipelines from a CPA who plans your corporation and your estate together.
Estate planning accountant
Pass on what you built with less tax and less stress
Without planning, the tax on death can take a large share of what you built. Canada taxes most capital property as if it were sold at fair market value on the date of death, and shares of a private corporation can be taxed twice if the estate is not planned.
Major Tax & Accounting, CPA helps families in London and across Ontario reduce that tax, keep control of the family business and settle estates with care. We work alongside your estate lawyer and financial planner so your will, your trusts and your corporate structure point in the same direction.
Estate & trust services
Estate and trust planning services
Creation of trusts
A trust can protect assets, provide for family members and support tax planning. We design the trust with your lawyer, set out who the beneficiaries are and plan how income and capital will be paid out.
After the trust is settled we register it with CRA and handle the yearly T3 trust return, including the beneficial ownership information that trusts must now report.
Estate planning
Estate planning coordinates your will, your corporation and your investments to reduce tax and probate costs. Common tools include spousal rollovers, estate freezes, multiple wills and life insurance held in a corporation.
We estimate the tax that would arise on death today, show you where it can be reduced and give your lawyer the tax plan to build into your wills.
Succession planning
Succession planning prepares your business for the next owner, whether that is a child, a key employee or an outside buyer. An estate freeze can lock in today’s value for you and pass future growth to the next generation.
We plan the transfer, review whether the lifetime capital gains exemption can be used and set a timeline so the handover is tax-efficient and fair to every family member.
Terminal tax returns
The final T1 return reports income from January 1 to the date of death, including the deemed disposition of capital property. It is due April 30 of the following year, or six months after the date of death if death occurs in November or December.
We prepare the final return and any optional returns that can lower the tax, file the estate’s T3 returns and request a CRA clearance certificate before the estate is distributed.
Post-mortem pipelines
When someone dies owning shares of a private corporation, the estate can face tax on the deemed disposition at death and again when money is taken out of the company. Post-mortem planning such as a pipeline can reduce or eliminate this double tax.
We compare the pipeline with other post-mortem options, plan each step with the estate’s lawyer and complete the filings within the required time limits.
Family trusts
A discretionary family trust can hold shares of a family business, protect assets and help the family make use of the lifetime capital gains exemption on a sale.
We set up the trust as part of an estate freeze, apply the tax on split income rules carefully and plan ahead for the 21-year deemed disposition rule.
Other trusts
Some situations call for a different kind of trust. These include alter ego and joint partner trusts for people aged 65 or older, testamentary trusts created by a will, graduated rate estates and Henson trusts for beneficiaries with a disability.
We explain which trust fits your goals and handle its tax filings every year.
Who we help
Estate and trust planning for families and business owners
- Business owners planning an estate freeze or family trust
- Families passing a business or cottage to the next generation
- Executors and estate trustees settling an estate
- Retirees aged 65 or older considering an alter ego or joint partner trust
- Parents planning for a child with a disability
Industries we serve
We speak your industry’s language
Every industry has its own tax traps and opportunities. We know them, so you don’t have to.
Lawyers & Law Firms
Trades & Contractors
Physicians
Dentists
Real Estate Investors & Landlords
Restaurants & Hospitality
Consultants & Professional Services
Retail & Ecommerce
Family Businesses
Questions
Frequently asked questions
When is a terminal tax return due?
The final return is due April 30 of the year after death. If death occurs in November or December, it is due six months after the date of death.
What is a post-mortem pipeline?
It is a series of transactions after death that lets the estate take money out of a private corporation as a return of capital instead of a taxable dividend. It helps avoid paying tax twice on the same value.
Do I still need a family trust?
A family trust can still protect assets and help multiply the lifetime capital gains exemption on a sale of the business. Income splitting is limited by the tax on split income rules, so we review whether a trust still fits your situation.
What is the 21-year rule?
Most personal trusts are treated as selling their capital property every 21 years. We plan ahead so assets can be distributed or the tax can be managed before that date.
Not sure where to start?
Book a 15 minute call. We’ll listen, ask a few questions and tell you exactly how we can help.