SESSION OVERVIEW:

In order to preserve and build the family wealth, should assets be accumulated in a private corporation, or should there be a shift to consider investing outside the corporation, or through different investment vehicles? The question is a valid one considering the passive investment income rules, which advisors must understand, in order to make investment recommendations for investments help within a private corporation.

APPROACH:

Many of your clients will ask you whether they should be stripping out or removing corporate assets to avoid the application of the passive investment income rules. Those questions will have changed in light of the 2020 pandemic. Your answers will depend on what type of passive income is earned within their corporation, its impact (if any) on active business earned in an associated corporation, and alternatives for investing in an RRSP or TFSA.

WHAT YOU WILL LEARN:

• Content will focus on summarizing the new rules and in using examples to illustrate the tax impact on a typical owner/manager structure. The session will also look at wealth accumulation through a corporation versus in a personal non-registered account versus a RRSP or TFSA.
• The session will cover discussion of investing corporately, versus personally, versus through an RRSP or TFSA to maximize wealth accumulation.
• Sound choices: Strategies for minimizing the impact of the passive investment income rules on building and preserving family wealth given current economic scenarios.

LEARNING ACTIVITIES: To test the learning process, the student will answer multiple-choice questions and contemplate the role of the advisor.