A presentation from Gwen Becker (RBC Private Banking), Rhoda Dobler (Best & Blocksom) and Allison Maher (Family Wealth Coach) about what to explore in succession planning for transitioning a family business.

1. Meet Jane Series
Session 4
Presented by:
Allison Maher of Family Wealth Coach
Rhoda Dobler of Dunphy, Best & Blocksom
Gwen Becker of RBC Dominion Securities

2. Agenda
Business Succession Planning
Co-habitation
Preview of your Retirement Planning

3. Exercise

4. Results

5. 1. Discovery
2. Financial & Tax
Planning
3.Will & Estate Review
4. Insurance Review
5. Investment Strategy
6. Implementation
7. Ongoing Review
Wealth Management
5
Jane

6. What is Wealth Management?
6

7. Matrimonial Property Act
Exempt Property (gift, inheritance, insurance)
o Not shareable between spouses
o Fair market value of property owned at the date of marriage (provided it can be traced)
o Inheritance/gift from third parties
o Insurance proceeds not related to the property
o Tort proceeds

8. Matrimonial Property Act (cont’d)
“Equitably” Divided Property
o Increase in value of exempt property or income from exempt property
o Gifts between spouses
o Property acquired after divorce or judgment or Judicial Separation
Property subject to a presumption of equal sharing
o Any property, real or personal, owned by either or both spouses that does not fall within 1
and 2 above (all property accumulated by the parties during the marriage)
Valuation at Date of Settlement or Trial (NOT separation date)

9. Source:
Alberta Business Families Institute,
University of Alberta School of
Business
12 Steps to Succession Planning
1.Determine the
Owner-Manager
Commitment
2. Consult and
advise other
stakeholders
3. Set up
Governance
Structures
4. Assemble
and analyze
key documents
5. Evaluate
financial needs
9. Educate,
Mentor,
Communicate
6. Determine
the vision for
business
8. Design an
Estate Plan
10. Restructure
Ownership
11. Set up
Contingency
Succession Plan
7. Determine
Successor
selection process
12. Review and Re-evaluate

11. Planning
Priorities
Social
Capital
Legacy
Family
Legacy
Financial
Independence

12. Tax Planning Opportunities
Estate Freeze
Capital Gains Exemptions
Deemed Disposition Tax

13. 2. CONSULT and ADVISE 2. CONSULT and ADVISE OOTTHHEERR SSTTAAKKEEHHOOLLDDEERRSS

14. 3-3-99 TThhee AADDVVIISSOORRYY BBOOAARRDD

16. 6. DETERMINE the VISION 6. DETERMINE the VISION ffoorr tthhee BBUUSSIINNEESSSS

17. 7. DETERMINE the SUCCESSOR 7. DETERMINE the SUCCESSOR SSEELLEECCTTIIOONN PPRROOCCEESSSS

18. 10. RESTRUCTURE 10. RESTRUCTURE OOWWNNEERRSSHHIIPP

19. 10. RESTRUCTURE 10. RESTRUCTURE OOWWNNEERRSSHHIIPP

21. Do’s and Don’ts of Succession Planning
Do’s Don’ts
Work towards financial independence –
outside business
Do not procrastinate
Involve all stakeholders Follow the same plan as someone else
Be clear on roles (hats) Do things for tax reasons only
Have purposeful conversations (ie. an
agenda)
Leverage your advisory team – lawyer,
accountant, coach, HR, investment, bank,
insurance advisor
Work towards continuity…succession
planning is a process not an event
Consider a 3rd party sale, if it is the right
thing

22. Key Messages
o Follow a process – be purposeful
o Create a roadmap for success
o Financial independence from the business is powerful – both for
you and for the business
o Involve all the stakeholders - understand their expectations (ie.
Brother, parents, key staff, bank, Simon) Don’t make assumptions
o Pick your own rules of fairness
o Protect your legacy - co-habitation agreements, Unanimous
Shareholder Agreements, wills, Enduring Power of Attorney’s,
insurance, family governance, tax planning....these are all simply
tools to help you achieve your goals
o Be pro-active

23. General Disclaimer
The information contained in this report has been compiled by RBC Dominion Securities Inc*. from sources believed to be reliable, but no representation or warranty, express or
implied, is made by RBC Dominion Securities Inc., its affiliates or any other person as to its accuracy, completeness or correctness. All charts, illustrations, examples and other
demonstrative content contained in this report have been provided for illustrative purposes only as of the date of this report, are subject to change without notice and are provided in
good faith but without legal responsibility. Whilst efforts are made to ensure the accuracy and completeness of the information contained in this report at the time of publication, errors
and omissions may occur.
Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Hypothetical historical data used in this report,
including any underlying assumptions used, is not indicative of future performance or value. Any upward or downward trend presented during the Analysis Time Horizon is not an
indication that the portfolio is likely to increase or decrease in value at any time.
Each legal jurisdiction has its own laws regulating the types of securities and other investment products which may be offered to their residents, as well as the process for doing so. As
a result, any securities or investment products discussed in this report may not be eligible for sale in some jurisdictions. This report is not an offer to sell or a solicitation of an offer to
buy any security. Additionally this report is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any
person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. The contents of this report are provided for informational
purposes only and do not constitute a recommendation to purchase a particular security or investment product. Nothing in this report constitutes legal, accounting or tax advice and
you are advised to seek independent legal, tax and accounting advice prior to acting upon anything contained in this report. Interest rates, market conditions, tax and legal rules and
other important factors which will be pertinent to your circumstances are subject to change. Specific investment strategies should be considered relative to the suitability of the
products contained therein, your objectives and risk tolerances. For information on any security or investment product mentioned in this report you are advised to consult the
applicable offering document pertaining to such security prior to investing.
To the full extent permitted by law neither RBC Dominion Securities Inc. nor any of its affiliates, nor any other person, accepts any liability whatsoever for any direct or consequential
loss arising from any use of this report or the information contained herein. No matter contained in this document may be reproduced or copied by any means without the prior consent
of RBC Dominion Securities Inc. Additional information available upon request.
RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities
Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ®Registered trademarks of Royal Bank of Canada. Used under licence. ©
RBC Dominion Securities Inc. 2014. All rights reserved.