$12 million inheritance - Page 10
Page 10 of 10 FirstFirst ... 8910
Results 91 to 93 of 93

Thread: $12 million inheritance

  1. #91
    Member
    Join Date
    May 2009
    Posts
    40
    Quote Originally Posted by atrp2biz View Post
    I would argue that there is a difference. Wife and I have been debating how to best structure our assets to maximize wealth transfer to future generations. After consulting with tax professionals, we will be going down the path of a holdco/trust structure with assets being butterflied into the holdco every 1-2 years. There is a cost associated with this we believe this structure provides us with the greatest flexibility for our assets. If anyone has experience in this, I'd appreciate a PM!
    I can't help you with your specific question, but I would urge you to run your own analysis of these complicated schemes. There is not doubt you can gain some tax savings from a trust, but a lot of what gets proposed to HNW individuals is purposely complex and provides more fees to financial professionals and lawyers than would otherwise have been the case. They are financially biased to propose stuff like this to you, and your interests may not be central to the intent.

    Even the basic CCPC for professionals gets pitched to just about everyone, but there are many who should not set up a CCPC, at least not at the time that they are told to set it up. But why would an accountant lawyer turn away a paying customer with guaranteed yearly revenue with advice like that?

    Buyer beware.


  2. #92
    Senior Member atrp2biz's Avatar
    Join Date
    Sep 2010
    Location
    Calgary, AB
    Posts
    864
    It's not terribly complicated. Two primary benefits:

    1) Time value of money--specifically deferral of taxes (personal rate vs. general corporate rate)
    2) Directing income through the trust

    The magic number of income required to setup a CCPC has been discussed here a few times. I don't remember what the number is, but incorporation makes sense in our case.

  3. #93
    Member
    Join Date
    May 2009
    Posts
    40
    I wasn't referring to the CCPC as a complicated structure. It is simple, but oversold. As far as complexity is concerned, I was referring to complex trust/family trust/insurance schemes that are very lucrative for financial professional especially when advising HNW clients.

    I've seen professionals running CCPC's for two decades before they retained a cent in the CCPC because they had two mortgages and kids expenses to pay. They received ridiculous advice to set that up so early, advice that was not in their best interests.

    Time value of money doesn't really play a role. It is a structure that quite simply allows tax deferral, and that has a lot of value....until Justin Trudeau takes it away.

    Rumours are swirling that the Liberal government is going to apply tests to CCPC's for SBD eligibility which will likely include things like number of full time employees (greater than 5?) and ratio of active income to liquid business assets (greater than 1?). The idea is to allow the SBD for only those who are truly running small businesses not investment vehicles. For most professionals (doctors, lawyers, accountants, IT consultants etc) it is simply an investment vehicle to defer tax. The document outlining their plan of attack is due in the coming months with implementation likely at the next federal budget. If there is anyone out there just initiating the process of setting one up, I would definitely hold off until this document is released as its not cheap to set up a CCPC and the maintenance accounting/legal costs go on forever until it is closed (which also costs money). You will want to know if the CCPC advantage still exists for you.

    Last edited by AshleyT; 2017-05-12 at 09:18 PM.

Page 10 of 10 FirstFirst ... 8910

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •