Make an estate plan now, not later

One of the biggest myths we hear from entrepreneurs? That estate planning is only for the super-rich — or something you can worry about later.

Here’s the truth: if you own a business, you need an estate plan.

And it’s not just about who gets your personal stuff when you pass away. An estate plan is your playbook for keeping your business running, protecting your family and making sure your partners and employees aren’t left scrambling. Without it, you’re looking at stress, delays and unnecessary costs — exactly when your loved ones have enough on their plate.

What exactly is an estate plan?

 It’s a coordinated set of legal, financial and sometimes insurance-based strategies that protect both your personal and business interests — during your lifetime, if you become incapacitated and after you pass away.

Why estate planning matters even more for entrepreneurs

When a business owner passes unexpectedly, it’s not just personal assets that need to be distributed. There’s a company to deal with. That means questions like:

• What happens to the shares — does the surviving spouse now hold control?
• Is there cash available to buy them out?
• How is the value determined, and how long does the business have to pay the estate?

Then there’s the tax side: What income or gains get triggered automatically? How much will that bill be? Without a plan, your family and business partners could be facing some big, expensive surprises.

What happens without estate planning

Without an estate plan, things can get messy fast.

• No will? The courts decide who gets what. That means delays, extra legal costs, and no guarantee your wishes will be followed.
• No tax plan? Capital gains can be triggered, RRSPs cashed out and a big slice of your estate goes straight to the government instead of your family.
• No Unanimous Shareholder Agreement or succession plan? Your business could be left without leadership, forcing a rushed sale, closure or even a transfer of control to someone who’s not prepared to run it.

All of this can be avoided with a bit of planning now — saving your loved ones stress, time and money when they need it most.

Build an estate plan, not just a will

A basic will is better than nothing — but a complete estate plan goes further. It includes:

• Organizing key documents
• Leaving clear instructions

• Having open, honest conversations with family

These steps make it easier for your family to manage what can be a lengthy, complicated process filled with legal and financial hurdles.

For most people, that means having at least:

• A will
• An enduring power of attorney
• Updated insurance coverage

If you have a larger estate or own a business, bring in a team — lawyer, accountant, insurance advisor and financial planner — to make sure nothing slips through the cracks.

Focus on these estate planning goals

1. Protect family wealth
   Make sure your spouse, kids, and dependents are provided for.
2. Simplify the process
   Don’t leave a messy tangle for your family to sort out.
3. Plan for business succession
   Make sure employees and clients aren’t left in the dark.
4. Minimize taxes
   Good planning can save your estate thousands (or even millions) in tax.
   
   

Use insurance to protect family wealth

In estate planning, insurance isn’t just a personal safety net — it’s a business and family safeguard. It can:

• Fund partner buyouts.
• Cover tax bills.
• Provide cash so heirs don’t have to sell assets at a loss

Mortgage insurance is also key — the bank still expects that mortgage to be paid.

Two main types of life insurance:

• Term insurance – Affordable, straightforward coverage for a set period (e.g., 20 years).
• Whole life insurance – Costs more, but lasts for life and builds cash value.

Example: A healthy 35-year-old could get $1M in term coverage for about $75/month. The same coverage in whole life could cost ~$2,000/month, but it builds equity you can access later.

Create a “life binder” to simplify things for your family

One of the kindest things you can do is create a “life binder” — a single spot with everything your family will need:

• Will (updated after big life changes)
• Insurance policies
• Personal net worth statement
• Contact info for your lawyer, accountant, banker, insurance broker

• Passwords for key accounts

Digital storage tools like Hubdoc or Dropbox make it easy to keep these secure but accessible.

Document your business succession plan

If you’re a small business owner, succession planning is a must. Ask yourself:

• Who would take over if I’m no longer here?
• Do I want to sell the business or pass it on?
• What is my business worth?
• Is there a continuity or disaster recovery plan in place?

Document your policies, procedures, and any information necessary to keep your business running. The Business Development Bank of Canada has excellent resources for this.

Plan early to reduce your estate’s tax bill 

Without planning, your estate could face a big tax bill. For example, if you pass without a spouse, all your assets are deemed “sold” right before your death — triggering capital gains on property, stocks or business assets.

With early planning, you can:

• Use exemptions and trusts.
• Transfer wealth gradually.
• Freeze shares.
• Keep farmland or ranchland in the family.
  
  

Work with a team that understands small business owners

At True North Accounting, we help small business owners put their estate plan together without the stress. We’ll connect you with the right pros — accountants, lawyers, insurance specialists and financial planners — so you’re covered from every angle.

The earlier you start, the more options you have, and the more peace of mind you’ll feel.

📅 Book a free meeting today to get your plan in place and protect what you’ve worked so hard to build.

Read more about Small Business Basics topics that may be helpful to you and your small business.

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