Family Trusts

Combining a family trust with a small business corporation can provide tax planning opportunities. It is important to set the trust up properly to avoid potential income tax penalties and ensure it functions in a way to best suit your circumstances.

  • Where there is an existing business corporation, a valuation and estate freeze will be necessary
  • It is important to determine the proper settlor, trustees and beneficiaries
  • Once established, after tax corporate income can be paid to the trust as a dividend then redistributed to one of more of the beneficiaries by the trust.
  • This is effective in providing income to low bracket family members such as students during their university years or non working spouses.
  • Use of a holding company to provide creditor protection
  • Ability to use multiple capital gains exemptions for family members
  • Use of Holding company as an alternative to RSP’s
  • Ability to control assets that benefit your family members

*Insurance based investment solutions are provided through Affinity Financial Group. All other investment solutions are through Affinity Securities / Worldsource Securities Inc.