What Is Probate and How to Plan for It
Probate is the process of getting your will approved by the courts. This process validates your will and allows your executors to distribute your assets. However, probate can often be an expensive and long process. Each province has probate fees which can end up being quite substantial on a big estate. Probate can also cause serious delays in the distribution of assets from the will because once a will is probated it becomes public record. This means that it can be contested and potentially delayed while the courts settle any disputes. The good news is that with proper planning, it is possible to minimize or even eliminate the number of assets that have to go through probate.
Understand the Value of a Holding Company
Holding companies can be a great tool for successful small business owners. Holding companies, or Hold co.’s, provide business owners with an opportunity for additional asset protection and tax savings. Unlike Operating companies, or Op co,’s, holding companies are not used in active business and are not revenue producing. They are mostly used for tax purposes as dividends can usually be transferred between corporations’ tax free. This allows for operating companies and holding companies to work together for business owners.