Planning Structures in Practice
Illustrative case structures demonstrating how corporate and family capital can be strategically positioned for long-term tax efficiency, liquidity access, and estate outcomes.
Construction
Design Firm
Construction Design Firm Owner
Profile
Toronto construction design firm owner (Female, 46) with ~$500K annual profit and ~$2.5M retained earnings under a HoldCo + OpCo structure.
Challenge
- Corporate surplus accumulating with tax-inefficient personal extraction options
- Estate tax exposure on accumulated corporate wealth
- Need to maintain corporate liquidity while advancing long-term planning objectives
Strategy
- Corporate capital repositioning for estate efficiency
- CDA-integrated corporate estate structure
- Liquidity structuring flexibility within corporate planning
Outcome
- Multi-million projected CDA capacity
- Estate liquidity without forced asset sales
- Corporate retained earnings repositioned into long-term tax-advantaged corporate estate structure
Corporate
IFA Strategy
Corporate IFA Strategy for a Capital-Intensive Business Owner
Profile
45-year-old incorporated business owner in Markham operating a specialized building materials company with approximately $2.1M in annual revenue, ~$600K after-tax corporate profit, and ~$3.8M in retained earnings.
The business operates with ~$12M in fixed-asset financing tied to commercial property and operational infrastructure typical for asset-intensive enterprises.
Challenge
- Large retained earnings accumulating beyond operating requirements
- Dividend extraction highly tax-inefficient
- Capital largely committed to fixed assets and commercial debt
- Desire to improve long-term estate efficiency without reducing business liquidity
Strategy
- Corporate-owned participating life insurance
- Immediate Financing Arrangement (IFA) with bank lending
- Integrated insurance, lending, and tax structure
Outcome
- $21.84M projected corporate death benefit
- $21.84M CDA credit created
- ~$15.16M net CDA after loan repayment
- Estate liquidity achieved without disrupting operations
Veterinary
Succession
Veterinary Practice Succession & Estate Structuring
Profile
Ottawa husband-and-wife veterinary clinic owners (age 50) operating for 25 years. Clinic revenue ~$3.1M, after-tax corporate profit ~$500K, $4.2M retained earnings, plus two corporate investment properties (FMV ~$2.5M). Their son is prepared to take over.
Challenge
- Direct transfer of shares may trigger tax consequences
- Future growth increases parents' estate tax exposure
- Retirement lifestyle requires liquidity beyond business assets
- Wealth concentrated in business and real estate
Strategy
- Estate Freeze with Family HoldCo structure
- Surplus profit movement via intercorporate dividends
- Structured corporate estate liquidity planning
- Liquidity structuring flexibility to support retirement objectives
Outcome
- Parents' current company value locked in
- Future growth shifted to next generation
- Retirement liquidity supported without requiring asset liquidation
- Significant projected CDA capacity created
- Succession, retirement planning, and estate tax strategy integrated
Find out if these strategies align with your goals
These case studies are examples of planning structures — not recommendations. A brief conversation helps determine whether a similar approach is appropriate for your situation.
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