SBLR

When a shareholder passes away, their shares are generally deemed disposed of at fair market value for tax purposes.

Without planning, this can result in:

1️⃣ 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗴𝗮𝗶𝗻𝘀 𝘁𝗮𝘅 on shares at death
2️⃣ 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗮𝘀𝘀𝗲𝘁𝘀 remaining inside the company
3️⃣ 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻𝘀 creating an additional layer of tax

𝗣𝗼𝘀𝘁-𝗺𝗼𝗿𝘁𝗲𝗺 𝗲𝘀𝘁𝗮𝘁𝗲 𝗽𝗹𝗮𝗻𝗻𝗶𝗻𝗴 helps coordinate corporate and estate tax outcomes and reduce the risk of double taxation.

These situations often require coordination between tax advisors, executors, legal counsel, and the corporation.

If you are reviewing how business ownership fits into your estate planning, our team can help.

Get in touch: https://www.sblr.ca/contact