Bablitz Wealth Management - Managing Your Business

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Owning and operating a successful company commands a lot of time and attention. Every day, you make critical decisions that affect the financial health of your business. So, you know how important it is to have the best possible services and products to help effectively manage your finances — we can help.

Our business owner solutions can be ideal if you need help:

Managing business and personal assets separately but efficiently
Investing, preserving and maximizing surplus cash
Designing a succession plan for a smooth transition
Creating diversified, tax-efficient income with the sale proceeds
Protecting against the sudden loss of a key employee using insurance solutions
Safeguarding personal and business assets from adverse events
Building employee loyalty with employer-sponsored retirement plans

Estate freeze planning

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Do you own all the shares of your business?

If so, you may be limiting yourself from numerous tax and business transition opportunities.

An estate freeze of your shares can help minimize taxes and provide you with more flexibility.

There are a few tax benefits of an estate freeze.

Current capital gain on your shares is frozen. Any future growth is then transferred to the next generation, limiting your taxes at death.

As well, lifetime capital gains exemption can be multiplied with family members upon a sale.

You may also be able to pay dividends to lower-income adult family members subject to “Tax on Split Income” rules.

For example, if your business is worth $5MM, an estate freeze would lock in that value in your name.

Any future growth above $5MM would then accrue to the next generation.

For tax reasons, an estate freeze should be set up at least two years in advance of a potential sale — so early planning is key.

This video is provided by RBC Wealth Management for informational purposes only. The comments contained in this video are general in nature, and do not constitute legal, investment, trust, estate, accounting or tax advice. RBC Dominion Securities Inc.*, Royal Trust Corporation of Canada, The Royal Trust Company, RBC PH&N Investment Counsel Inc., RBC Wealth Management Financial Services Inc. are affiliated corporate entities and member companies of RBC Wealth Management, a business segment of Royal Bank of Canada. *Member – Canadian Investor Protection Fund. Please visit www.rbc.com/legal/ for further information on the entities that are member companies of RBC Wealth Management. ®/TM Trademark(s) of Royal Bank of Canada. Used under license. © 2020 Royal Bank of Canada. All rights reserved.

Managing Your Business

Build your business and personal wealth with expert advice

Estate freeze planning

Business owner's guide

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