Estate planning isn’t just about having a will, but about having the right documents, structures, and strategies in place to preserve wealth and protect family harmony. At our most recent Cumberland Private Wealth event, our clients and special guests were treated to a deeply insightful presentation by Marni Pernica, a partner in the Estates & Trusts Group at Aird & Berlis LLP.

Known for her practical approach and cross-jurisdictional expertise, Marni took our guests through a range of strategies that can reduce tax, streamline administration, and ensure that legacy plans unfold as intended. The session was hosted by Cumberland President and CEO Charlie Sims, who facilitated an interactive Q&A following the presentation.

Probate Planning: How (and When) to Avoid It

The first half of the discussion focused on probate planning, particularly in Ontario, where the Estate Administration Tax (EAT) can amount to $15,000 per $1 million of estate value. Probate is required when a will needs to be legally validated before assets such as bank accounts or real estate can be transferred. As Marni explained, it’s often unavoidable, but smart structuring can reduce or even eliminate its cost.

She walked through strategies such as designating beneficiaries on registered accounts and life insurance, considering joint ownership via bare trust agreements, using primary and secondary wills to separate assets that require probate from those that don’t, and looking at alter ego and joint partner trusts for individuals aged 65 and over.

Each approach comes with its own considerations and trade-offs. As Marni put it, “Estate planning is choose-your-own-adventure. It’s about knowing your options and choosing what’s right for your circumstances.”

Estate Freezes: Controlling Tax and Transitions

For business owners and individuals with large private investment portfolios, Marni introduced the concept of an estate freeze, a strategy used to lock in today’s value of an asset and transfer future growth to a trust or next generation.

The benefits of an estate freeze can include minimizing capital gains tax on death by capping the growth held personally, multiplying access to the lifetime capital gains exemption through a family trust, and deferring tax while retaining control through preferred share structures.

She also addressed some often-overlooked details, such as the 21-year deemed disposition rule on trusts (which doesn’t apply to alter ego or joint partner trusts) and the growing use of refreezes to manage long-term growth.

Importantly, Marni emphasized that estate freezes must be coordinated with estate planning documents and reviewed regularly, especially when family members marry, move abroad, or inherit different types of assets.

Q&A: Cross-Border Executors,
Trust Residency, and Family Dynamics

Following the presentation, attendees raised thoughtful questions about naming non-resident executors, coordinating wills across jurisdictions, and dealing with beneficiaries who move abroad. Marni shared practical guidance on these topics, including:

• Why appointing a non-resident executor can complicate both probate and tax planning
• How to structure trusts when beneficiaries live internationally
• When it’s wise to involve professional trustees or trust companies, especially in blended families or complex estate scenarios

She also cautioned that trust interests may be considered family property in Ontario divorce proceedings, underscoring the need for proactive legal planning when children in a trust structure are preparing to marry.

A Plan That Evolves With You

Marni closed with a reminder that estate planning isn’t a one-time exercise, but an ongoing conversation that must evolve along with your life, the family, and the law. At Cumberland, we’re committed to helping clients keep the conversation going through a thoughtful and personalized approach to wealth planning.

If you wish to see a playback of the event, learn more about estate planning, or revisit your current structure, please reach out to your Cumberland Portfolio Manager.