On September 15, 2026, McCarthy Tétrault hosted its Private Wealth Summit, bringing together practitioners from the firm's charities, tax, estates and trusts, and litigation groups to discuss the pressures facing high net worth families, family offices, private foundations and closely held enterprises.
The sessions covered foundation governance, recent tax developments, succession planning and disputes arising from poorly managed transitions. Across these discussions, a common theme emerged: structures often fail not because the documents are inherently deficient, but because authority is unclear, expectations are misaligned, and information does not reach those who bear the economic consequences of decisions.
Key takeaways from the discussion included:
1. Governance matters as much as structure
- Keep foundation and business governance distinct, with clear responsibility for decisions, costs, and record-keeping.
- Tailor governance practices to the organization's specific risks rather than relying on generic checklists.
- Prepare for increased audit scrutiny as the CRA adopts more technical positions and pursues enforcement more aggressively.
- Address governance early, including who makes decisions, who leads and manages transitions, how information is shared, and how disputes will be resolved.
2. CRA scrutiny is becoming more demanding
- Proposed changes would expand the CRA's ability to compel information and impose penalties for non-compliance, including a $50-per-day penalty for notices of non-compliance and a suspension of the reassessment period while a notice remains in effect.
- Compliance orders could carry a 10% penalty based on aggregate tax payable for each year the order relates to, although one proposed measure requiring taxpayers to answer questions orally under oath was ultimately dropped.
- Review existing estate freezes in light of the CRA's recent scrutiny of structures where voting control and economic ownership diverge. The courts have not yet ruled on these issues.
- Loss utilization within a related corporate group is not, on its own, abusive tax avoidance (Canada v. Quebecor Inc., 2025 FCA 207).
3. Succession planning requires more than tax planning
- Ensure legal structures reflect family expectations, as many succession failures stem from misaligned expectations rather than defective drafting.
- Records explaining why decisions were made are often as important as the documents themselves.
- Pair legal tools with communication, education, and governance processes that build understanding and buy-in across generations.
- Revisit governance periodically and build succession into control arrangements. Successful succession planning addresses not only who receives value, but also who makes decisions, how control transitions, and whose interests those decisions serve.
4. Many disputes can be prevented
- Review and stress-test core agreements before conflict arises, particularly where ownership, control and economic interests may diverge.
- Establish clear dispute-resolution mechanisms, including defined escalation processes, valuation mechanisms, buy/sell rights and, where appropriate, final binding arbitration.
- Identify and disclose potential conflicts early, particularly where individuals hold multiple roles as owners, directors, trustees or beneficiaries.
- Build clear information-sharing and disclosure obligations into governance arrangements to reduce uncertainty and prevent disputes.
Final takeaway: Plan before the pressure
Timing matters. Reviewing agreements before conflict, disclosing conflicts before they are discovered, and keeping records that can withstand scrutiny can preserve both the value of the enterprise and the legacy it was built to protect.
To view the original article click here
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]
