Written by Ron Cooke, President & Founder of Strategic Wealth Protection Partners in Ontario
The Problem:
Deepak*, a 57-year-old real estate investor in Ontario, came seeking a solution to a very specific concern: how to ensure that his $7 million in investment properties would go directly to his two minor children when he passed away—without being diverted or lost along the way.
Although he was still married, Deepak did not want these particular assets to pass to his spouse. His concern was that if she remarried or later changed her estate plans, the children might never receive the inheritance he intended for them.
He wanted to maintain control and certainty over who would ultimately benefit from his real estate business.
His personal assets—including RRSPs, a cottage, and a principal residence—were already designated for his wife. It was the business and real estate holdings that he wanted to earmark specifically and solely for his children
The Solution:
To address this, a two-part estate planning strategy was implemented:
- Trust Structure: A trust was created to receive the business and investment properties. Because his children were minors, they could not legally hold title to the assets directly. The trust allowed Deepak to ensure that these assets would be held and managed for the benefit of his children according to his wishes, without going through his spouse.
- Life Insurance: To cover the tax liability associated with transferring the properties into the trust, life insurance was set up. This helped ensure that, upon his passing, the estate would not be forced to liquidate assets to pay taxes. The insurance was designed to cover the tax up to the point of transfer, allowing the properties to pass intact to the trust.
Why This Worked:
- Asset Protection for Minors: The trust ensured that Deepak’s minor children would receive the assets in the future, with clear legal safeguards in place.
- Clarity of Intent: The trust bypassed the spouse for these specific assets, aligning with Deepak’s wishes without compromising her financial stability (she was still provided for through other assets).
- Tax Liability Management: The life insurance addressed the inevitable taxes from the asset transfer, preserving the full value of the real estate holdings for the next generation.
- Simplicity and Precision: The process focused on deeply understanding Deepak’s personal goals. He had previously spoken with other professionals but didn’t get the clarity he needed. This customized, client-centered approach gave him confidence.
The Outcome:
Deepak was genuinely pleased with the outcome.
After years of uncertainty and conversations that hadn’t delivered clear answers, he finally had a structured plan in place. The process gave him a sense of calm, knowing that his legacy would be preserved exactly as he intended, with protections for both his children and his spouse.
And he no longer had to spend hours scouring the internet looking for solutions!
*Names have been changed to protect the identity of SWPP’s clients.
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With our simple, 5-Step Living Estate Plan, we make the process easy, helping you create a comprehensive estate plan or trust that protects your assets from taxes and probate fees while preserving your legacy. Tools like The Final Word Journal capture your story, wishes, and essential details like accounts and end-of-life plans, ensuring your family has clarity and comfort.
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Read More
If you’re starting your estate planning process, you may find these articles helpful:
- How to Avoid Estate Tax in Canada in 2025
- Guide to Holding Property in a Trust in Ontario
- Is Life Insurance Worth It in Canada? Pros & Cons
About the Author
RON COOKE, PRESIDENT & FOUNDER OF STRATEGIC WEALTH PROTECTION PARTNERS
With over 30 years in financial services, I’ve seen the challenges families face when a loved one passes—lost assets, unnecessary taxes, and emotional stress. That’s why I created the Living Estate Plan, a comprehensive process to protect assets, eliminate estate and probate fees, and create legacies that are remembered for many years to come.
This plan ensures your family receives not just your wealth, but a meaningful reminder of your care and love. Tools like The Final Word Journal capture your story, wishes, and essential details, offering clarity and comfort during difficult times.
Your final gift should be more than money—it should be peace of mind, cherished memories, and an organized estate.
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