Globe & Mail – Why an estate freeze makes sense now

   May 20, 2020


We are very pleased to share that partners David A. Altro and Bradley Richard Thompson were asked to prepare a special for The Globe and Mail, which was published on May 20, 2020. Their article titled “Why an estate freeze makes sense now” provides insight into a tax planning opportunity for Canadians which has come to light following the economic impact of COVID19. The article reviews the various factors such as the stock market, Canadian dollar, estate valuations, fair market value and more, which point towards an estate freeze as a tax planning opportunity.

To read the article you can see it in part below, or click here to view it on The Globe and Mail’s website.

Globe & Mail – Why an estate freeze makes sense now

David Altro and Bradley Richard Thompson
The Globe and Mail
May 20, 2020

COVID-19 has created a global public health crisis. But the economic impact of this pandemic is also staggering and provides an opportunity for tax planning by using something called an estate freeze.

Between Feb. 21 and March 23, the S&P/TSX Composite Index lost more than 35 per cent of its value. During this same period, the U.S. dollar appreciated against the loonie by almost 9 per cent. As of May 19, the S&P/TSX has recovered more than half of its losses while the Canadian dollar remains down by a bit more than 5 per cent versus its Feb. 21 value.

North of the border, this health scare has led many Canadians to update their estate plans, to make sure that their last will and testament is current and to look at how they can pass along their wealth to their children or beneficiaries with the least amount of tax on death.

The recent deep losses in both the stock market and the Canadian dollar are key because many estate tax plans are based on valuation. In Canada, one such tax plan is known as an “estate freeze.” In effect, this is the process of taking certain assets that you own today, freezing the tax on death at today’s value, retaining the voting control while passing future growth to children or other designated beneficiaries. […]

To continue reading, please click here to view the article on The Globe and Mail’s website.
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