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BV Benefit #10 – Executor / Trustee Protection

Executors of an estate with business interests should obtain an as support for the values used in the estate administration tax ("EAT") filing, particularly in light of recent changes to EAT legislation and the potential for personal liability facing executors.

 

At the time of probating the will, EAT (previously known as "probate fees") of 0.5% must be paid on the first $50,000 ...

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BV Benefit #9 – Matrimonial Separation

According to Statistics Canada, over 40% of marriages will end in divorce before the 50th year of marriage. [1]   Where there is a family business or where one spouse has an ownership interest in a privately held company, there may be a need for an in a matrimonial separation.

 

The division of property is a major issue in a divorce.  According to the Ontario Ministry of the At...

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BV Benefit #8 – Shareholder Disputes

Business owners typically do not require an every year.  Or do they?

 

In shareholder disputes there is often an immediate need for a business valuation.  However, being proactive and obtaining an annual valuation can help to avoid a potential shareholder dispute.

 

Business ownership...

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BV Benefit #7 – Life Insurance Coverage

Many business owners utilize life insurance as an integral part of their exit and contingency planning.  Without life insurance the overall may be incomplete.

 

Life insurance is often used for income replacement or to alleviate the burden of estate and probate taxes upon death.  However, when business owners use life insurance to fund a buyout or redemption of the shares of a...

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BV Benefit #6 – Tax and Estate Planning

With many business owners planning to to the next generation over time, one option is through an estate freeze.

 

In an estate freeze the business owner’s common shares are exchanged for preferred shares of equal value to the common shares.  New common shares are then issued by the company to the next generation family members.  This allows the business owner to "freeze" hi...

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BV Benefit #5 – Internal Transfer of a Business

According to recent studies on the business succession market in Canada, between approximately 30% and 40% of business owners surveyed are expecting to transfer the business internally to other shareholders, management, employees or a family member. [1]

 

A (perhaps annually in accordance with a shareholder agreement) is highly recommended and very beneficial for purposes of tran...

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BV Benefit #4 – Sale of a Business to a Third Party

According to recent studies on the market in Canada, more than one third of those surveyed are expecting to sell the business externally to a third party. [1]

"We should remember that good fortune often happens when opportunity meets with preparation."

- Thomas. A. Edison

...

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March 9, 2012

Jason Kwiatkowski, CA, CBV, ASA, CEPA delivers a presentation to various lawyers at Miller Thomson LLP on "The Role of Experts and Critiquing Expert Reports"

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BV Benefit #3 – Pre-Sale Planning

The third benefit of having a (i.e. share valuation) is its use in pre-sale planning for business owners.

 

As previously mentioned, between 60% and 75% of business owners will exit their businesses within the coming decade.[1]   Over $10 trillion in private wealth will change hands in North America over this time frame, the largest transfer of private wealth in history. [2]

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BV Benefit #2 – Wealth Management

The second benefit of having a is its use in wealth management.

 

The value of a business can represent the largest portion of a business owner’s wealth. According to a publication by Mercer Capital:

"About 75% of all private equity is own...

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