{"id":15366,"date":"2026-10-19T09:00:00","date_gmt":"2026-10-19T13:00:00","guid":{"rendered":"https:\/\/wellington-altus.ca\/?p=15366"},"modified":"2026-11-06T18:13:20","modified_gmt":"2026-11-06T23:13:20","slug":"the-succession-planning-gap","status":"publish","type":"post","link":"https:\/\/wellington-altus.ca\/fr\/the-succession-planning-gap\/","title":{"rendered":"The Succession Planning Gap"},"content":{"rendered":"<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:13pt\"><em>A transfer plan must address ownership, control and readiness, not only who receives an asset.<\/em><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">In Canada, the transfer of substantial wealth is already underway, yet many succession plans remain incomplete. The reasons <\/span><span style=\"font-size:12pt\">for delay <\/span><span style=\"font-size:12pt\">are often understandable<\/span><span style=\"font-size:12pt\">: a desire<\/span><span style=\"font-size:12pt\"> to preserve flexibility, uncertain<\/span><span style=\"font-size:12pt\">ty<\/span><span style=\"font-size:12pt\"> about how to divide assets, or <\/span><span style=\"font-size:12pt\">concerns about a<\/span><span style=\"font-size:12pt\"> successor<\/span><span style=\"font-size:12pt\">\u2019s readiness.<\/span><span style=\"font-size:12pt\">&nbsp;&nbsp;<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Delay has a cost<\/span><span style=\"font-size:12pt\"> though,<\/span><span style=\"font-size:12pt\"> as fewer options remain after an illness, conflict, death or unsolicited offer forces decisions onto a compressed timeline.<\/span><span style=\"font-size:12pt\"> <\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">According to the UBS Global Family Office <\/span><span style=\"font-size:12pt\">R<\/span><span style=\"font-size:12pt\">eport<\/span><span style=\"font-size:12pt\"> 2026<\/span><span style=\"font-size:12pt\">, 57% of surveyed family offices had wealth succession plans for family members. At the same time, <\/span><span style=\"font-size:12pt\">having a plan <\/span><span style=\"font-size:12pt\">did<\/span><span style=\"font-size:12pt\"> not mean the next generation <\/span><span style=\"font-size:12pt\">was<\/span><span style=\"font-size:12pt\"> prepared to participate in decisions.<\/span><span style=\"font-size:12pt\"> Among next-generation family members considered old enough to participate, <\/span><span style=\"font-size:12pt\">only 13% <\/span><span style=\"font-size:12pt\">were<\/span><span style=\"font-size:12pt\"> fully involved in decision-making<\/span><span style=\"font-size:12pt\">, while<\/span><span style=\"font-size:12pt\"> 21% <\/span><span style=\"font-size:12pt\">ha<\/span><span style=\"font-size:12pt\">d<\/span><span style=\"font-size:12pt\"> no involvement<\/span><span style=\"font-size:12pt\"> at <\/span><span style=\"font-size:12pt\">all. \u00b9<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\"><img fetchpriority=\"high\" decoding=\"async\" width=\"624\" height=\"328\" src=\"https:\/\/wellington-altus.ca\/wp-content\/uploads\/2026\/11\/Picture-1352106286-624w328h.png\" class=\"wp-image-15494 size-full\" srcset=\"https:\/\/wellington-altus.ca\/wp-content\/uploads\/2026\/11\/Picture-1352106286-624w328h.png 624w, https:\/\/wellington-altus.ca\/wp-content\/uploads\/2026\/11\/Picture-1352106286-624w328h-300x158.png 300w, https:\/\/wellington-altus.ca\/wp-content\/uploads\/2026\/11\/Picture-1352106286-624w328h-18x9.png 18w\" sizes=\"(max-width: 624px) 100vw, 624px\" \/><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">These findings point to an issue that legal documents alone cannot resolve. A technically sound estate plan may specify who receives an asset without preparing that person to own <\/span><span style=\"font-size:12pt\">it, manage it or participate in decisions. The people affected by a plan need enough information and time to understand the responsibilities it creates.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:13pt\">Transferring Ownership <\/span><span style=\"font-size:13pt\">a<\/span><span style=\"font-size:13pt\">nd Control<\/span><\/strong><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Succession becomes more complicated when transferring <\/span><span style=\"font-size:12pt\">a business<\/span><span style=\"font-size:12pt\"> also means shifting responsibility for its management. <\/span><span style=\"font-size:12pt\">In some cases, p<\/span><span style=\"font-size:12pt\">rofessional executives <\/span><span style=\"font-size:12pt\">may <\/span><span style=\"font-size:12pt\">assume responsibility for daily operations<\/span><span style=\"font-size:12pt\">, while<\/span><span style=\"font-size:12pt\"> ownership remains within the family. <\/span><span style=\"font-size:12pt\">In other cases, selling a business<\/span><span style=\"font-size:12pt\"> to management, employees or <\/span><span style=\"font-size:12pt\">an outside<\/span><span style=\"font-size:12pt\"> <\/span><span style=\"font-size:12pt\">buyer<\/span><span style=\"font-size:12pt\"> <\/span><span style=\"font-size:12pt\">can <\/span><span style=\"font-size:12pt\">provide a path for the business to continue under new ownership.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">These arrangements require clarity about decision rights<\/span><span style=\"font-size:12pt\">:<\/span><span style=\"font-size:12pt\"> <\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<div class=\"ul\" style=\"margin-top:0;margin-bottom:0;margin-left:0;margin-right:0\">\n<div class=\"li\" style=\"margin-top:0;margin-bottom:0;margin-left:0;margin-right:0\">\n<div style=\"margin-top:0pt;padding-top:0;margin-bottom:0;padding-bottom:0;line-height:1.38;font-size:11pt;margin-left:36pt\"><span style=\"display:inline-block;position:relative;text-indent:-18pt\"><span style=\"position:absolute;top:-0.34em;left:0;font-size:2em\">\u2022<\/span>&nbsp;<\/span><span style=\"font-size:12pt\">Who can approve a sale, authorize borrowing, appoint management or determine distributions? <\/span><\/div>\n<\/div>\n<div class=\"li\" style=\"margin-top:0;margin-bottom:0;margin-left:0;margin-right:0\">\n<div style=\"margin-bottom:0;padding-bottom:0;line-height:1.38;font-size:11pt;margin-left:36pt\"><span style=\"display:inline-block;position:relative;text-indent:-18pt\"><span style=\"position:absolute;top:-0.34em;left:0;font-size:2em\">\u2022<\/span>&nbsp;<\/span><span style=\"font-size:12pt\">How will disagreements be resolved? <\/span><\/div>\n<\/div>\n<div class=\"li\" style=\"margin-top:0;margin-bottom:0;margin-left:0;margin-right:0\">\n<div style=\"margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt;margin-left:36pt\"><span style=\"display:inline-block;position:relative;text-indent:-18pt\"><span style=\"position:absolute;top:-0.34em;left:0;font-size:2em\">\u2022<\/span>&nbsp;<\/span><span style=\"font-size:12pt\">Who has access to the financial information required to make those decisions?<\/span><\/div>\n<\/div>\n<\/div>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">The answers may involve shareholder agreements, governance structures and coordinated legal, tax and financial advice. Without that clarity, a completed ownership transfer leave<\/span><span style=\"font-size:12pt\">s<\/span><span style=\"font-size:12pt\"> unresolved questions about how the business or other assets will be managed.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:13pt\">A Wider Set <\/span><span style=\"font-size:13pt\">o<\/span><span style=\"font-size:13pt\">f Succession Paths<\/span><\/strong><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Succession does not always mean a parent-to-child transfer. Business owners may prefer a management buyout, an employee-ownership structure or a third-party sale. Individuals without children or intended family successors may be planning transfers to spouses, relatives, trusts or charitable organizations.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Recent changes to Canada<\/span><span style=\"font-size:12pt\">\u2019<\/span><span style=\"font-size:12pt\">s Employee Ownership Trust (EOT) rules have introduced tax incentives that may make selling a business to employees more attractive for eligible owners, including a capital gains exemption of up to $10 million on qualifying <\/span><span style=\"font-size:12pt\">sales.<\/span><span style=\"font-size:12pt\">\u00b2<\/span><span style=\"font-size:12pt\"> <\/span><span style=\"font-size:12pt\">While the incentives may make this approach more appealing, a successful transition still requires careful consideration of valuation, financing, governance and tax implications.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Each path <\/span><span style=\"font-size:12pt\">has different<\/span><span style=\"font-size:12pt\"> implications for control, liquidity, taxation and the future of the underlying asset. The <\/span><span style=\"font-size:12pt\">most appropriate approach depends on the<\/span><span style=\"font-size:12pt\"> owner\u2019s objectives and the readiness of those expected to <\/span><span style=\"font-size:12pt\">assume<\/span><span style=\"font-size:12pt\"> responsibility.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:13pt\">Build The Plan <\/span><span style=\"font-size:13pt\">i<\/span><span style=\"font-size:13pt\">n Stages<\/span><\/strong><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Succession planning often begins with an understanding of the owner&#8217;s objectives, existing ownership arrangements and the readiness of potential successors. Financial considerations, including the liquidity required to support a transition, also play an important role. <\/span><span style=\"font-size:12pt\">These factors help inform the evaluation of different succession paths and<\/span><span style=\"font-size:12pt\"> the legal documents, governance arrangements, insurance <\/span><span style=\"font-size:12pt\">ou<\/span><span style=\"font-size:12pt\"> financing <\/span><span style=\"font-size:12pt\">that may be required<\/span><span style=\"font-size:12pt\">.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">This staged approach does not require every future decision to be fixed today. <\/span><span style=\"font-size:12pt\">Instead, i<\/span><span style=\"font-size:12pt\">t creates a framework that can evolve as circumstances change<\/span><span style=\"font-size:12pt\"> while<\/span><span style=\"font-size:12pt\"> ensuring that critical information, authority and funding do not depend on one person<\/span><span style=\"font-size:12pt\">\u2019s availability<\/span><span style=\"font-size:12pt\">.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Estate counsel, tax professionals, valuation specialists and corporate advisors each address different technical issues. <\/span><span style=\"font-size:12pt\">As your wealth advisor, we <\/span><span style=\"font-size:12pt\">can help connect their recommendations to portfolio liquidity, investment risk and <\/span><span style=\"font-size:12pt\">votre<\/span><span style=\"font-size:12pt\"> wider objectives.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Succession planning is about more than determining who receives an asset. It establishes who will make decisions, how responsibilities will transfer, and whether the people and financial resources needed to support that transition are in place. A plan can evolve as circumstances change. Its value lies in ensuring that essential decisions are made deliberately rather than under the pressure of an unexpected transition.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:9pt\">Sources<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:9pt\">1. <\/span><a href=\"https:\/\/www.ubs.com\/global\/en\/media\/display-page-ndp\/en-20260528-global-family-office-report-2026.html\"><span style=\"text-decoration:underline;color:#467886;font-size:9pt\">UBS, Global Family Office Report 2026<\/span><\/a><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:9pt\">2. <\/span><a href=\"https:\/\/www.canada.ca\/en\/department-finance\/news\/2026\/06\/legislation-passes-to-implement-measures-from-the-spring-economic-update-2026.html\"><span style=\"text-decoration:underline;color:#467886;font-size:9pt\">Department of Finance Canada, press release<\/span><\/a><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>A transfer plan must address ownership, control and readiness, not only who receives an asset.<\/p>","protected":false},"author":14,"featured_media":15351,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[60],"tags":[79],"class_list":["post-15366","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth-planning","tag-english"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - 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