CRA Takes 80% When You Die
How dying with an incorporated business can trigger layers of tax that devastates family wealth – and why post-mortem planning is critical before it's too late.
📥 Free resources from this episode
Estate Planning Audit: Where Are Your Gaps?
The Advisors TableEstate Planning Audit: Where Are Your Gaps?
Map every asset you own to one of three transfer buckets. See exactly who gets what when you die, and whether that's who you intended. Most people find at least one surprise.
Show Notes
When you die owning a corporation in Canada, the CRA can take up to "80 of its value" through layers of taxation – leaving your family with almost nothing.
Through An Example, You'll Learn:
• How CRA applies a deemed disposition when you die
• How a $1M corporation can trigger over $800K in total taxes
• How capital gains tax, dividend tax, and corporate tax stack together
• What "double" and "triple" taxation really mean in practice
• What post-mortem tax planning is
• What strategies can reduce the tax outcome from 80% down to 27%
• Why this issue affects employees, jobs, and entire communities – not just owners
• The three questions every incorporated business owner must ask their tax advisor
If you own a corporation, this is something you cannot afford to ignore. Without planning, years of work can disappear to taxes in a single event.
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