“A dying man summoned his Lawyer and Accountant to his bedside. He turned to his Lawyer and said, “I’d like to change something in my will before I go.” The lawyer responded, “Of course, anything you wish. What change needs to be made?” To this, the dying man replied, “Instead of having a burial, I want to be cremated.” The man’s lawyer asked him what he would like done with the ashes. The dying man answered, “I want you to deliver my ashes to my Banker and the CRA/IRS; they have taken everything from me, I might as well give them my ashes – they’re the last tangible things I’ve got!”
In the event, you are thinking about starting a new business your primary concern is probably regarding the overall success of your business. Therefore, you are likely focused on mitigating costs wherever possible. A simple way many people reduce costs is to simplify their corporate structure. However, sacrificing corporate structure to save some money may not be worth it.
As discussed in part one of this two-part bog, an estate freeze has multiple benefits from delaying taxes and avoiding creditors to marriage planning.
An estate freeze locks in the value of certain capital assets for one person while attributing the growth in value to another. This allows you to freeze the value of capital assets for yourself while attributing the growth to your heirs.