Locking in the current value of a business so future growth accrues to the next generation.
In Islamic law
Because it transfers future growth during life, it shifts value outside the estate — and therefore outside the faraid shares. Worth raising with a scholar as well as an accountant.
In Canadian law
A common succession technique for a family business, usually implemented through a corporate reorganisation.
No significant difference between the four Sunni schools is recorded on this point in the sources reviewed. Where a specific case turns on it, ask a qualified scholar rather than relying on a general summary.
Canadian legal detail
Treadstone Law, an Ontario firm with a wills and estates practice, covers the Canadian side of this in more depth:
- Multiple trustees ontario joint decision making
- Testamentary trust vs inter vivos trust tax rates
- Trust beneficiary turns 18 tax consequences canada
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.
- T3 Trust Guide — Canada Revenue Agency
- Challenging estate trustee appointment ontario — Treadstone Law
- How to set up a henson trust in ontario — Treadstone Law
- Estate freeze family trust shares ontario — Treadstone Law
- Henson trust tax treatment ontario — Treadstone Law
- What happens if estate trustee dies before testator — Treadstone Law
- Wills & estates practice — Treadstone Law