Estate & Succession Planning in Canada
Without a proactive tax strategy, the Canada Revenue Agency could become the largest beneficiary of your estate. We help high-net-worth individuals and business owners structure their wealth to ensure a seamless, tax-efficient transfer to the next generation.
The Silent Threat: Deemed Disposition at Death
Canada does not have a formal "inheritance tax" or "estate tax" like the United States. However, we have something that can be equally devastating to unprepared families: the Deemed Disposition Rule.
Under the Income Tax Act, when a Canadian resident passes away, they are deemed to have sold all their capital property (real estate, stocks, private company shares) at fair market value immediately prior to death. This triggers a massive capital gains tax bill on their final (terminal) tax return.
If your wealth is tied up in illiquid assets—like a family business or a real estate portfolio—your heirs may be forced to sell those assets just to pay the CRA.
How We Protect Your Legacy
At Teixeira Accounting, we engineer comprehensive estate plans that mitigate this tax shock. By utilizing spousal rollovers, estate freezes, and specialized trust structures, we defer and minimize the tax burden, ensuring your life's work stays with your family.
The Terminal Tax Hit
Capital gains are realized immediately upon death, potentially pushing the estate into the highest marginal tax bracket (over 53% in Ontario).
Terminal Tax Estimator
Estimate the "Deemed Disposition" tax hit on your final tax return. This simplified calculator assumes all assets are taxed at Ontario's top marginal rate without spousal rollovers.
Investment Properties & Cottage
Non-Registered Investments
Private Company Shares
Total Taxable Income Added
Includes full RRSP balance + taxable portion of capital gains.
Estimated Terminal Tax Hit
Payable to the CRA on your final tax return.
How we can reduce this
This tool is for general information only and does not replace professional tax or accounting advice.
*This estimator uses a simplified flat Ontario top marginal rate (~53.53%) and the 2025 capital gains inclusion rules (50% on first $250k, 66.67% thereafter). Excludes principal residence exemption.
Strategic Estate Solutions
Estate planning is not just about having a will. It is about structuring your assets today to prevent tax leakage tomorrow.
Secondary Wills (Dual Wills)
In Ontario, probate fees (Estate Administration Tax) are approximately 1.5% of your estate's value. By creating a Secondary Will for private company shares and certain other assets, we can legally bypass probate, saving your estate hundreds of thousands of dollars.
Estate Freezes
If you own a growing private corporation, your future tax liability grows every day. An estate freeze locks in the current value of your shares for your own tax purposes, and transfers all future growth—and the associated tax liability—to the next generation.
Family Trusts
Discretionary Family Trusts are powerful vehicles for holding growth shares after an estate freeze. They provide ultimate control over who receives dividends, protect assets from creditors or marital breakdown of beneficiaries, and allow for the multiplication of the Lifetime Capital Gains Exemption (LCGE).
Spousal Rollovers
Assets transferred to a surviving spouse (or a qualifying spousal trust) can "roll over" at their original cost base, deferring the capital gains tax until the surviving spouse sells the assets or passes away.
Alter Ego & Joint Partner Trusts
For individuals over age 65, these specialized trusts allow you to transfer assets tax-free while you are alive. They provide seamless succession, complete privacy (unlike a probated will), and bypass probate fees entirely.
Corporate Life Insurance
We work with your insurance advisors to structure corporate-owned life insurance. The death benefit can flow through the Capital Dividend Account (CDA) to your heirs completely tax-free, providing the exact liquidity needed to pay the terminal tax bill.
Estimate Your Probate Exposure
Without proper planning, the Ontario government takes roughly 1.5% of your total estate value before your beneficiaries see a dime. Use our interactive estimator to see your potential exposure and how a Secondary Will strategy can help.
Ontario Probate Fee Estimator
When you pass away, your executor may need to apply for probate. The Ontario government charges an Estate Administration Tax based on the total value of your estate. Adjust the sliders below to estimate your potential exposure.
Total Estate Value
Estimated Probate Fee
Payable to the Ontario government before assets can be distributed.
Secondary Will Strategy
Without a Secondary Will, your private business shares are grouped into your general estate and subjected to the 1.5% probate fee.
*This calculator provides a simplified estimate for Ontario residents based on 2025 rates. It does not account for joint tenancy, designated beneficiaries, or the terminal tax return (deemed disposition).
This tool is for general information only and does not replace professional tax or accounting advice.
Business Succession: Passing the Torch
For many entrepreneurs, their business is their largest asset and their retirement fund. Transitioning that business to the next generation—or preparing it for a third-party sale—requires years of runway.
- Business ValuationDetermining the true fair market value of your enterprise to establish the baseline for an estate freeze or buyout agreement.
- Purification for LCGERemoving passive assets (like excess cash or real estate) from your operating company so it qualifies for the Lifetime Capital Gains Exemption.
- Shareholder AgreementsStructuring buy-sell provisions and shotgun clauses to protect the business if a partner passes away unexpectedly.
The Cost of Inaction
We frequently see successful businesses destroyed because the founder passed away without a succession plan. The resulting terminal tax bill forces the family into a "fire sale" of the business assets at a fraction of their true value, simply to satisfy the CRA.
"A properly executed estate freeze can literally save a family millions of dollars in terminal taxes, while allowing the founder to retain absolute voting control over the company for the rest of their life."
Why Choose Teixeira Accounting?
At Teixeira Accounting Firm Inc., we don't just record history; we write your financial future. Most accounting firms are reactive—they wait for you to bring them problems. We are proactive architects of your wealth and business growth.
Whether you're a scaling enterprise or a high-net-worth individual, we provide the strategic oversight, tax optimization, and bulletproof compliance you need to operate with absolute confidence.
The Teixeira Advantage
Proactive Tax Strategy
We don't just file your taxes; we actively look for ways to reduce your tax burden year-round.
Bulletproof Compliance
Our rigorous quality control ensures your filings are accurate, minimizing audit risk.
Dedicated Advisory
You get a dedicated partner who understands your business deeply, not just a once-a-year tax preparer.
Frequently Asked Questions
Clarity on complex Canadian estate and succession tax rules.
Protect Your Life's Work
Estate planning is complex, but ignoring it is costly. Let our CPAs design a customized succession plan that minimizes taxes and secures your family's financial future.
Schedule an Estate Planning Review