Succession Governance Gouvernance de Succession

Succession Planning Beyond the Will

A will is a necessary but insufficient succession planning document for a high-net-worth Canadian family. It governs what happens to your assets after death, but succession planning for families of means must also address the transfer of wealth during your lifetime, the governance of family enterprises across generations, the equitable treatment of family members with different roles and different relationships with the family wealth, and the tax efficiency of all of the above.

The Estate Freeze

An estate freeze is a tax planning strategy in which a business owner exchanges their common shares for fixed-value preferred shares, while family members or a family trust subscribe for new common shares at a nominal value. The effect is to freeze the business owner's capital gains exposure at the current value of their preferred shares, while transferring all future growth in the business to the next generation at a cost basis equal to the current fair market value.

An estate freeze is typically the most significant tax planning transaction in a business owner's financial life. The timing, structure, and valuation all require careful coordination among tax advisors, legal counsel, and business valuators. St. Lawrence Gate coordinates this process and ensures that the freeze is structured to achieve the intended result while withstanding CRA scrutiny.

Family Governance

For families with significant shared wealth — a family holding company, a real estate portfolio held in common, or a charitable foundation — governance structures that define decision-making authority, conflict resolution processes, and entry and exit rights for family members are essential to preserving both the wealth and the family relationships. St. Lawrence Gate facilitates family governance conversations and helps families establish the written agreements and institutional structures that make shared wealth manageable across generations.