Business Succession
Planning Lawyer in Toronto
Protecting your business legacy with succession plans, estate freezes, and ownership transition strategies tailored to Ontario law.
Arrange a Call →Protecting your business legacy with succession plans, estate freezes, and ownership transition strategies tailored to Ontario law.
Arrange a Call →Your business is your life's work. We ensure it survives and thrives through ownership transitions and beyond.
Business succession planning is the process of creating a legal framework for the transition of business ownership and management upon the owner's death, incapacity, or retirement. It typically involves a combination of a properly drafted will, powers of attorney, shareholder agreements, buy-sell agreements, corporate reorganizations, and tax planning strategies such as estate freezes.
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For business owners in Toronto and across Ontario, estate planning is not just about distributing personal assets. Your business may be your most valuable asset and the source of income for your family and employees. Without a proper succession plan, the death or incapacity of a business owner can trigger a forced sale, shareholder disputes, loss of key relationships, and significant tax liabilities. The Succession Law Reform Act (SLRA), the Trustee Act, and federal tax legislation all interact to create complex considerations for business owner estate planning.
At Lexaltico LLP, our estate planning lawyers at 55 University Avenue, Toronto work with business owners to develop comprehensive succession strategies that align with their corporate structure, shareholder agreements, tax planning objectives, and personal estate plan. Whether you own a sole proprietorship, a professional corporation, a family-held private corporation, or hold interests in a partnership, we tailor a plan that ensures continuity, protects value, and minimizes tax on transition.
A business succession plan starts with a properly drafted will. Our will and estate planning packages, including our Simple Will from $500 and Will + 2 POAs from $995, are designed to integrate with your corporate and commercial arrangements. For business owners, we often recommend additional provisions addressing the disposition of shares, the appointment of an estate trustee with business management experience, and instructions for the continued operation or orderly sale of the business. Most wills are completed within 5-7 business days.
An estate freeze is one of the most effective strategies for business succession planning in Ontario. By exchanging your common shares for fixed-value preferred shares and issuing new common shares to the next generation (or a family trust), you lock in the current value of your interest for tax purposes and allow future growth to accrue to the successors. This reduces the capital gains tax liability on your death and facilitates a gradual transition of ownership. Our lawyers coordinate with your accountant to implement estate freezes that comply with the Income Tax Act (Canada) and align with your estate plan.
Buy-sell agreements (also called shotgun clauses or cross-purchase agreements) are essential for businesses with multiple owners. These agreements establish the mechanism by which a departing owner's interest is purchased upon death, disability, or retirement, ensuring the remaining owners retain control and the departing owner's estate receives fair value. We draft buy-sell provisions that are funded by life insurance, specify valuation methodologies, and integrate with the shareholders' agreement and each owner's personal will.
Corporate reorganizations, including the use of holding companies, family trusts, and share structures with multiple classes, provide additional flexibility for succession planning. Under the Trustee Act and applicable corporate legislation, these structures must be carefully designed to ensure the estate trustee has the authority and direction needed to manage the business interests during the administration period. Arrange a Call to discuss how these strategies apply to your specific business situation.
Death is not the only risk to business continuity. If a business owner becomes mentally incapable due to illness, injury, or cognitive decline, the business can suffer irreparable harm without a plan in place. A Power of Attorney for Property under the Substitute Decisions Act, 1992 allows you to appoint a trusted individual to manage your financial affairs, including your business interests, during any period of incapacity. For business owners, the choice of attorney and the scope of authority granted require particularly careful consideration.
We draft Powers of Attorney for Property that include specific provisions for business management, such as authority to make operational decisions, sign contracts, manage employees, deal with banking relationships, and interact with partners and shareholders. We also ensure the POA is consistent with any existing shareholder agreements, partnership agreements, and corporate bylaws. A misalignment between your POA and your corporate documents can create legal deadlock precisely when your business can least afford it.
Our Couples Package from $1,495 is especially valuable for couples who co-own a business, as it ensures both partners have comprehensive wills and POAs that work together seamlessly. Get Started Today by contacting our team at 55 University Avenue, Toronto. We understand that business owners have demanding schedules, and we work efficiently to complete your succession planning documents within 5-7 business days without sacrificing thoroughness or quality.
Use our Ontario Probate Fee Calculator for an instant estimate based on Ontario law. Takes under a minute, and you can have a detailed breakdown emailed to you.
Planning for a sale and planning for a death are different exercises with different tax consequences. What happens when an owner dies deals with the second.
Our lawyers offer a introductory call for most matters. Call, email, or book online. Do not sign anything before speaking with us.
55 University Ave, Suite 1100
Toronto, ON M5J 2H7
2 Sheppard Ave East, Suite 303, Toronto, ON M2N 5Y7
Monday to Friday: 9:00 AM to 5:00 PM
Evenings & weekends by appointment
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