A corporate reorganisation locking in today's value for you and directing future growth to the next generation. It moves value outside the estate.
The Canadian position
Standard succession planning for a family business, implemented with tax advice.
The Islamic position
Because future growth accrues to specific people during your life, it functions as a lifetime transfer rather than an inheritance. Whether that is an acceptable arrangement or an avoidance of the shares depends on intention and structure — put it to a scholar.
The four Sunni schools are not recorded as differing materially on this point in the sources reviewed. Where your own case turns on it, put it to a scholar of your school.
This is legal information only. For advice on your own circumstances, speak to a lawyer.
Citations & sources
Every factual claim on this page traces to one of the references below. Legislation and dollar thresholds change — verify against the primary source before relying on any figure.
- Research Papers — Cambridge Muslim College
- Research — Cambridge Muslim College
- Academics — Islamic law and theology curriculum — Zaytuna College
- Encyclopaedia of Islam — Brill
- T3 Trust Guide — Canada Revenue Agency
- What to do when someone has died — Canada Revenue Agency
- Income Tax Act, RSC 1985, c 1 (5th Supp) — Justice Laws Canada
- Who can be a trustee in ontario — Treadstone Law
- Breach of trust ontario what happens — Treadstone Law
- Rebutting resulting trust presumption joint account ontario — Treadstone Law
- Henson trust ontario odsp disabled beneficiary — Treadstone Law
- Principal residence exemption trust — Treadstone Law
- Spouse put matrimonial home in trust without consent — Treadstone Law
- Wills & estates practice — Treadstone Law