In this article, we’ll cover the following topics:

• Family property vs. excluded property

• Debt incurred during marriage

• Agreements between spouses during separation proceedings

When a married couple (or a non-married couple who has lived together for at least two years) separates, their shared property is divided according to guidelines set by the Family Law Act of British Columbia.

In this article, we’ll cover the following topics:

- What is income?

- What is a gift?

- How are gifts taxed?

- Exceptions to gift taxation

- Gifts from employers to employees

- Gifts of capital property

- Gift tax credits

What is income?

Before we discuss gifts and how they’re taxed, we need to first define income.

Vern Krishna, a leading Canada tax lawyer, defined income succinctly as a “measure of gain that derives from capital, from labor, or from both combined.”

In this article, we’ll cover the following topics:

• What is probate?

• What are the benefits of having multiple wills?

• What are the risks of having multiple wills?

According to the Wills, Estates and Succession Act, all citizens of British Columbia are allowed to use multiple wills. That’s great news for anyone looking to avoid probate fees.

But before we get into the specifics, let’s first cover the basics.

What is probate?

Probate is the process by which a court of law administers certain parts of your estate after your death. Generally speaking, probate is only concerned with assets in your estate that are owned solely by you, whereas the jointly-owned assets in your estate, such as insurance policies, retirement savings, and so on, will not need to go through the probate process.

In this article, we’ll cover the following topics:

- What is an estate freeze?

- When should I freeze my estate?

- What are the tax benefits of an estate freeze?

- Avoiding capital gains upon death

- Income-splitting opportunities

- Multiplying the lifetime capital gain exemption (LCGE)

What is an estate freeze?

An estate freeze allows you to transfer your business to the next generation without incurring immediate capital gains taxes, all while retaining control of the business and maintaining a steady stream of income.

In this article, we’ll cover the following topics:

- The two legal risks of gifts and inheritances

- Divorce settlement

- Providing financial assistance to your children

Divorce Settlement

There are many reasons why a divorce might go from bad to worse. One area that’s particularly prone to get messy is gifts and inheritances – shorthand for assets gifted to a single family member by a third party.

Principal Residence Exemption: What Every Canadian Business Owner Needs to Know

In this article, we’ll cover the following topics:

- What are the qualifications for the principal residence tax exemption?

- Residential properties

- Sole or joint ownership properties

- “Ordinarily inhabit”

- Designation as principal residence

- Limitations of the PRE

In this article, we’ll cover the following topics:
- How to transfer your business to the next generation
- Estate freeze
- Family trust
- Section 85 rollover
- Common shares

How to transfer your business to the next generation

A common mistake business owners make when transferring their business to non-arms-length individuals (e.g. their children, siblings, etc.) is setting the value of their business at a nominal amount – essentially gifting their business to the next generation.

This article will discuss the benefits of having a corporate will (also known as a ‘secondary’ or ‘restricted’ will), and why you may need one.

In this article, we’ll cover the following topics:

Federal versus provincial incorporation:

- Filing fees

- Name protection

- Registration

So, you’ve decided to incorporate your business. Now you need to decide where to incorporate – in a certain Canadian province, or at the federal level.

There are three things to keep in mind when considering federal incorporation versus provincial incorporation.

Filing Fees

The cost of filing federally is $200, plus the name reservation (NUANS, which is $13.80). At the provincial level, the filing cost varies by province. In British Columbia, for example, provincial incorporation currently costs $351.50, plus the name reservation (either $31.50 to $131.50 depending on the turnaround time you require).

In this article, we’ll cover the following topics:

- What is a section 85 rollover?

What is the section 85 rollover?

A Section 85 rollover is a mechanism under the Income Tax Act of Canada that allows taxpayers to transfer eligible property to another entity, usually a corporation, without the transfer resulting in an immediate personal tax liability. Used most often by small business owners who are operating as sole proprietors of their businesses and whose sole proprietorship has significant value, Section 85 rollovers allow sole proprietors to transfer properties on a tax-deferred basis, without realizing any sort of taxable gain on the transfer of property.

In this article, we’ll cover the following topics:

- What is a non-competition clause?

- What is a non-solicitation clause?

As a business owner, you’ll encounter non-competition and non-solicitation clauses in all manner of contractual documents: employment agreements, shareholders’ agreements, partnership agreements, and more. As such, it’s important to understand what they are and how they’re different from each other.

Non-Competition Clause

Often found in employment agreements, non-competition clauses prohibit a person from engaging in competitive behavior with the business for a set period of time. Under a non-competition clause, an employee who recently quit or was fired isn’t allowed to begin working immediately for a competitor; often they will need to wait several months, sometimes a full year, before they can do so without risking legal repercussions.

In this article, we’ll cover the following topics:

What convertible notes are and how they work

There are countless ways to fund a startup. One method is what’s called a convertible note. Though complex, convertible notes can provide certain benefits for founders, such as – so let’s dispel the confusion.

What’s a convertible note?

There are two ways a company can raise capital: either they take loans from a bank (or friends, or family), or they issue equity in their company.

Benefits of Incorporation for Canadian Businesses: Everything You Need to Know

Benefits of incorporation for small businesses in Canada:

- Liability shield

- Tax savings

- Lifetime capital gains exemption

- Selling Flexibility

What are the benefits of incorporation in Canada?

If you own a small business in Canada, here are four reasons why you may want to incorporate: liability shield, tax savings, lifetime capital gains exemption, and selling flexibility.

Liability Shield

If your business is not incorporated, then you’re a sole proprietor, meaning that you and your business are one and the same. Anything that happens to the business also happens to you personally, and vice versa. Your personal assets - your home, car, savings - are on the line.

Bare Trusts: The Basic Terms Every Canadian Business Owner Should Know

In this article, we’ll cover the following topics:

- What is a bare trust?

- What are the benefits of bare trusts?

- Avoiding property transfer taxes

- Easier change of property ownership

What is a bare trust?

Often used in real estate, bare trusts are legal structures that facilitate the separation of legal and beneficial ownership of a property. The process of creating a bare trust involves appointing a trustee (or ‘nominee’) to be legal owner of the property and hold the legal title on behalf of the beneficial owner. The name “bare trust” is derived from the fact that, unlike in other forms of trusts, the trustee/nominee of the bare trust has no other responsibilities or obligations with respect to the property other than to hold legal title.

Why Every Canadian Business Needs a Shareholders’ Agreement

In this article, we’ll cover the following topics:

• Why shareholders’ agreements are useful

• The legal power of shareholders’ agreements

• The shotgun clause

• Default provisions

Shareholders’ agreements are notoriously frustrating documents, mainly because they are long – in some cases, 60 pages long – and loaded with confusing legalese. Yet they are among the most important documents in any business owner’s arsenal, and having competent counsel on your team can help to eliminate some of that confusion.

Don’t believe me? Here’s a story that will change your mind…

Finding Your First Advisors: A Guide for New Entrepreneurs

In this article, we’ll cover the following topics:

- The first four advisors to your new company

- Bookkeeper

- Accountant

- Financial Advisor

- Corporate lawyer

When starting a business, most entrepreneurs will focus first on generating revenue, and rightfully so – profitability is, after all, the main thing that makes a business viable in the long term. But once you’ve crossed that threshold and your business has begun to take flight, that’s when you start building the next mechanism to keep your business in the air: a circle of key advisors.

But how do you find them? How should you bring them into your circle? Let’s dive in.

Advance Directives vs. Representation Agreements: Key Things to Know

In this article, we’ll cover the following topics:

- What’s an advance directive?

- What’s a representation agreement?

- What’s the difference between the two?

How to Draft a Will: 4 Reasons to Avoid Dying Without a Will

In this article, we’ll cover the following topics:

- Why you should avoid dying without a will

- You can’t choose how your estate gets distributed

- You’re leaving behind a big mess for your family

- You’re giving a tough job to a loved one who doesn’t want it

- You’re not establishing a guardian for your children (and/or pets)

How to Draft a Will: The Basic Terms Every Canadian Business Owner Should Know

In this article, we’ll cover the following topics:

- What makes up an estate?

- What is an executor of an estate?

- What is power of attorney?

- How is power of attorney involved in estate plans?

Cap Tables and Ownership Stocks: The Basic Terms to Know