6 worked Post-Mortem Tax Planning case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to post-mortem tax planning work, not a specific client's file.
Client: A family with a cottage held in trust · Where: Ottawa, Ontario · Engagement: 10 weeks, fixed fee
Penalty cancelled$141,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A family with a cottage held in trust, Ottawa, Ontario
A family with a cottage held in trust in Ottawa, Ontario had already missed one deadline and was about to miss a second. Behind it sat a family trust approaching its 21-year deemed disposition with no plan. A penalty of $141,000 was accruing.
What we did for A family with a cottage held in trust, Ottawa, Ontario
We split the work into what had to happen before the deadline and what could follow it. Then we implemented an estate freeze with a supported valuation, capping the current generation’s exposure and moving future growth to the successors.
The result — A family with a cottage held in trust, Ottawa, Ontario
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $141,000 of the penalty already assessed on the earlier year.
Case Study 2 · Planning that cut the bill
Remuneration Review Saved $66,000 Across Corporate And Personal Returns — Graduated Rate Estate, Regina
Client: An estate designated as a graduated rate estate · Where: Regina, Saskatchewan · Engagement: 8 weeks, fixed fee
Combined saving$66,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — An estate designated as a graduated rate estate, Regina, Saskatchewan
Nothing was wrong at an estate designated as a graduated rate estate in Regina, Saskatchewan. The filings were on time and accurate. What they were not was planned. A final return filed without the rights-or-things election, leaving a second set of credits unused had never been reviewed.
What we did for An estate designated as a graduated rate estate, Regina, Saskatchewan
We used the spousal rollover for the assets going to the surviving spouse and reported only the dispositions that actually had to be reported. We ran the numbers across both the corporate and personal returns, so the saving was real rather than deferred into someone else's hands.
The result — An estate designated as a graduated rate estate, Regina, Saskatchewan
$66,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 3 · Missed incentive claimed
$65,000 Credit Claim Filed And Accepted Without Adjustment — Alter-Ego Trustee, Lethbridge
Client: A trustee of an alter-ego trust · Where: Lethbridge, Alberta · Engagement: 7 weeks, fixed fee
Claim value$65,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A trustee of an alter-ego trust, Lethbridge, Alberta
A trustee of an alter-ego trust in Lethbridge, Alberta assumed the credits did not apply to a business its size. An estate distributing to adult children with no provision made for the deemed disposition on the final return meant they had applied all along.
What we did for A trustee of an alter-ego trust, Lethbridge, Alberta
We identified the qualifying activity and built the documentation to support it. Then we purified the corporation across two full years, so the shares met the asset tests by the time the sale closed.
The result — A trustee of an alter-ego trust, Lethbridge, Alberta
$65,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 4 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $46,000 Saved Each Year — Intergenerational Transfer Corporation, Surrey
Client: A corporation planning an intergenerational transfer · Where: Surrey, British Columbia · Engagement: 10 weeks, fixed fee
Annual saving$46,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A corporation planning an intergenerational transfer, Surrey, British Columbia
A corporation planning an intergenerational transfer in Surrey, British Columbia had outgrown the structure it started with. An estate distributing to adult children with no provision made for the deemed disposition on the final return was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A corporation planning an intergenerational transfer, Surrey, British Columbia
We mapped the current structure and modelled the target. Then we allocated trust income to the beneficiaries within the trust’s own year and supported each allocation with a T3 slip. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A corporation planning an intergenerational transfer, Surrey, British Columbia
The reorganisation completed without triggering tax, and the new structure saves approximately $46,000 a year while removing the exposure the old one carried.
Case Study 5 · Records and systems rebuilt
21 Months Reconciled And $4,800 Of Input Tax Recovered — Trust Beneficiary, Victoria
Client: A beneficiary receiving a trust distribution · Where: Victoria, British Columbia · Engagement: 7 weeks, fixed fee
Months reconciled21
Input tax recovered$4,800
Close time8 days
The situation — A beneficiary receiving a trust distribution, Victoria, British Columbia
Nothing reconciled at a beneficiary receiving a trust distribution in Victoria, British Columbia. Every filing started with 21 months of cleanup. The file was carrying a farm transfer completed without using the intergenerational rollover.
What we did for A beneficiary receiving a trust distribution, Victoria, British Columbia
We rebuilt from source rather than correcting on top of the existing file. We set the estate’s fiscal period and documented the executor’s authority, so the first return could carry the graduated rate estate designation. Then we set the routine that keeps it clean.
The result — A beneficiary receiving a trust distribution, Victoria, British Columbia
21 months reconciled to the bank. The close now takes 8 days, and $4,800 of previously unclaimable input tax was recovered in the process.
Case Study 6 · Scaling without breaking
Growth Handled Without A Missed Filing, $34,500 Freed — Farm Succession Family, Vancouver
Client: A family transferring a farm to the next generation · Where: Vancouver, British Columbia · Engagement: 6 weeks, fixed fee
Cash freed$34,500
Compliance failuresNone
ReportingMonthly
The situation — A family transferring a farm to the next generation, Vancouver, British Columbia
A family transferring a farm to the next generation in Vancouver, British Columbia was opening in a second province. That meant different filing obligations and a different payroll regime. A graduated rate estate designation missed on the first return, defaulting the estate to top-rate taxation already sat in the file.
What we did for A family transferring a farm to the next generation, Vancouver, British Columbia
We filed the outstanding T3 returns with full beneficial-ownership schedules and secured relief on the late-filing penalty. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A family transferring a farm to the next generation, Vancouver, British Columbia
Growth was absorbed without a compliance failure. $34,500 of cash was released, and the monthly reporting now flags a problem while it is still small.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
