You have stepped back from work, but much of your wealth is still in a corporation. It may need to fund retirement, later care and an inheritance. The aim is to leave your family a plan as well as assets.
See what changes the pictureYour security first
What does the money need to do for you?
Retirement spending, later care, control and access all matter. An inheritance plan should work alongside the owner’s needs.
Follow the whole transfer
More than one tax event may matter.
Tax can arise on your shares when you die. More tax may follow when the corporation sells investments or pays money out. Transfers to a spouse and planning after death may reduce or delay some of that tax.
The diagram identifies the decisions involved in retirement and inheritance. It doesn’t calculate a tax bill or the saving from an estate strategy.
Your corporation may still hold a lot of money after you retire. Plan for the tax, the cash needed to pay it and how your family will receive what remains.
Tax rules may treat your shares as sold when you die, even without an actual sale. Tax may also arise when the corporation sells investments or pays money out. Count both when estimating what your family could receive.
Transfers to a spouse and planning after death may reduce or delay tax. The right steps depend on your situation and timing. Your tax and legal advisers need to work together.
First, make sure the money can support your retirement and care needs. Then plan who should receive what remains, and when.
In our corporate savings example, leaving money in the corporation gives the owner more to use after tax. But taking it out sooner leaves more for the family after death. The example leaves out special planning to reduce tax at death. It shows why that planning matters, but does not estimate what any such strategy would save.
CRA: deemed disposition at death
Income Tax Act: trusts and beneficiary designations
Tax rules checked September 29, 2026. This is a general example. The sources explain the rules, but cannot tell you what your family would save. Your situation, costs and future tax rules can change the result.
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