Category: Foundations
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What is a Bare Trust?
Bare trust arrangements can help some investors re-organize their affairs in a way that reduces probate and makes it easier to transfer assets in the future. This post describes what a bare trust is and how it might be used. What is a Bare Trust? A bare trust occurs when a trustee is vested with…
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Section 85 Rollovers
A section 85 rollover allows Canadian taxpayers to transfer appreciated property to a taxable corporation without triggering the associated capital gains tax. In other words, a section 85 election allows a taxpayer to defer all or part of the tax consequences that would normally arise on the transfer. This post describes section 85 rollovers and…
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5 Challenges Inheritors Face (and how to overcome them)
When working class entrepreneurs become wealthy, they bring a perspective about wealth much different from those who inherit it. Wealthy inheritors face unique challenges that require distinct approaches to wealth management. This post describes 5 challenges wealthy inheritors face and how to overcome them: Financial Awareness Lifestyle Management Stewardship Self Esteem Trust in Relationships Financial…
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Why Have a Private Charitable Foundation?
A private foundation, sometimes called a “family foundation”, is a type of registered charity. Private foundations do not undertake charitable activities directly. Rather, private foundations simply fund other registered charities. Unlike public foundations, private foundations can be controlled by a single individual or connected groups of people. This post describes why investors may want to…
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Joint Ownership Accounts
Owning some or all your assets in joint ownership with your heirs (your spouse & kids) is common practice for many investors, particularly seniors. The main reasons to hold assets jointly is to avoid probate fees, make the administration of your estate easier/quicker, avoid certain taxes, and provide your heirs with a way to help…
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Values Based Investing
Recently, I decided to sell my shares of 3M. I’ve been shareholder for over a decade, which made the decision harder. This post describes my rationale towards making investment decisions based on non-financial (environmental, values) criteria. This post also provides an example of a portfolio faced with a similar decision-making process. What is 3M? 3M…
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Keeping your Holding Company in good standing
Managing a holding company (“holdco”) successfully includes keeping accurate records and performing administrative tasks. Missing some details might mean your holdco fails to comply with tax laws. But also, failure to administer your holdco properly could mean you waste time in the future cleaning up messes or wasting time searching for information. This post describes…
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Getting Capital out of your Holdco
Investors end up with capital inside holding companies for a variety of reasons including inheritance, tax & estate planning, and after the sale of an operating business. A holding company (“holdco”) is simply a corporation that earns passive income. Passive income is income earned from investments such as dividends from stocks, interest from loans &…
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What to do after you sell your business
Life becomes different after you come into a big pile of cash. Whether you’ve just sold your business, received an inheritance, or won the lottery. Suddenly being rich also brings problems. This post will describe some ways to approach life after you cash in. Take some time to reflect and celebrate If you’ve dedicated your…