Business Succession Planning Lawyers Toronto

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If you are an entrepreneur or own a family business, you should always consider implementing a succession plan. Succession plans ensure a continuous transition of the business in the event of your retirement, a long-term illness, an accident, or death. Neglecting this important planning step can leave your business open to risk and financial loss and can make its ongoing success a challenge.

At Gelman & Associates, we can help you craft a well-thought-out succession plan that can limit future conflicts, such as fights for ownership, leadership, control of your company, and other issues that may arise when unfortunate circumstances arise. Our lawyers strive to empower clients to make informed decisions. We will work tirelessly to deliver the best results possible and ensure the continued success of your venture.

To discuss your legal options with our Toronto office, call us today at (416) 736-0200 or fill out our online contact form.

Why Is Business Succession Planning Important?

It is important to create a succession plan that addresses both your personal and business goals and objectives. Well-drafted and updated plans ensure that the transfer of your business proceeds seamlessly, and will help you to:

Maintain good relationships with employees, business partners, suppliers, and other relevant stakeholders
Provide financial security for your family, shareholders, and others
Maximize your company’s value
Maintain your legacy
And more

Succession planning can be especially critical for family-owned businesses, as the involvement of loved ones can sometimes present unique challenges. For example, emotional decision-making, the involvement of multiple generations, and sibling rivalries may affect the way your business runs presently and in the future.

By creating a business succession plan for your family business early on, you can better avoid disputes. For example, you may consider employing strategies such as gradual leadership transfer, advisory boards, independent valuations, and more.

Factors to Consider in Succession Planning

There are many financial, legal, and tax implications when planning for the future of your business. Proactive planning for all possible outcomes will require both preparing your business for potential separation or divorce, but also comprehensive estate planning, including creating wills or family trusts.

When planning for the future, there are many issues to consider, such as:

Family Dynamics: You should consider how you will balance fairness among children when it comes to your business. If some children have greater roles in the family business than others, it will be up to you to decide how responsibilities are split in your business succession plan.
Business Valuation: Your succession plan can set expectations for the fair valuation of your business should your shares be transferred or sold. This is also a good way to ensure that your family and loved ones are provided for.
Management Transition: In tandem with your business succession plan, you should identify and begin training the successors you have chosen. By selecting these individuals early on, you may be able to include provisions for them in your plan.
Cross-Border Assets: If any of your business assets or shareholders exist outside of Ontario or Canada, your succession plan may address them accordingly.
Tax Planning: When it comes to businesses and succession planning, there are many different tax implications at play. With the help of an experienced Toronto business succession planning lawyer, you can better navigate capital gains exemptions, estate freezes, corporate restructuring, and more.

How Our Toronto Business Sucession Planning Lawyers Can Help

At Gelman & Associates, we understand the unique concerns of business owners and help them prepare for the future. We provide you with the information you need to identify and mitigate risk, provide for your loved ones, and guarantee your legacy.

When you work with our business succession planning lawyers in Toronto, we’ll help you:

Draft shareholder agreements and other important succession contracts
Structure trusts and estate freezes
Coordinate with accountants and financial advisors for tax optimization
Advise on marital property and protect your business assets in the event of a divorce
Litigate disputes if succession planning was not done properly at a previous date
And more

Our legal team takes the time to understand both your business and your family dynamics to help create a plan that works long-term. With Gelman & Associates, you can achieve peace of mind.

Contact Our Toronto Business Succession Planning Lawyers Today & See How We Can Help

Proactive planning is the key to the continued success of your business. At Gelman & Associates, our team of knowledgeable family lawyers can advise you on how to best protect your family business from future uncertainty. With our forward-thinking guidance, you can prepare for all eventualities.

We have offices conveniently located across Ontario, and our phone lines are open Monday to Friday from 8 AM to 8 PM. Call us at (416) 736-0200 or 1-844-736-0200 or contact us online to see how we can help.

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Frequently Asked Questions

Do I need to name a personal agent in my living will?

Your living will simply expresses your desires for medical care and doesn’t require you to choose someone to act as your personal agent.

Does my Living Will have to be filed with a court office?

While a person is alive, a will doesn’t need to be filed in court to be legal. The only time a will has to be documented is when the person who wrote it dies; then, the will must be submitted with the Clerk of the Court to begin the formalities.

Can family override a living will?

A family cannot override a living will unless it is explicitly stated in the will that they can override or change the wishes stipulated in the will.

What is the difference between a living will and a will?

A living will deals with end-of-life affairs while you are alive . The will is guaranteed to come into effect some day, while a living will is only there if you need it.

Is a living will legally binding in Canada?

Yes, a living will is legally binding in Canada given that it is drafted and executed properly. In order to ensure that a living will is properly drafted, many people elect to utilize a standard form version of the instrument.

What is incapacitation in a living will?

Incapacitation occurs when medical professionals and a court determine that you’re mentally unable to handle your own affairs, such as managing your estate or making choices for yourself.

What is adult guardianship?

When informal aid is insufficient, and there is no representation agreement or enduring power of attorney in place, an adult guardian is appointed.

What are the major differences between enduring and ordinary powers of attorney?

An ordinary power of attorney is only valid as long as the donor can act for him or herself. However, if the donor dies or becomes mentally incapacitated, a power of attorney is invalidated. On the other hand, an enduring power of attorney remains valid despite the donor being mentally incapacitated.