When someone dies in Canada, they are generally deemed to have disposed of their capital property at fair market value immediately before death, unless a tax-deferred rollover to a spouse is available. Canada does not have a federal estate tax or inheritance tax like our neighbours in the United States. However, provinces may levy probate fees formally called the Estate Administration Tax in Ontario. Each province varies in how they calculate it.

So, what is probate? It is the legal process where a provincial court certifies that a Will is valid and that the named executor has the legal authority to manage the deceased’s assets.

Financial institutions (such as banks, insurance companies, and investment brokers) may require a court-issued probate grant before releasing assets to the estate, particularly when the assets are substantial or the institution wants confirmation that the executor has legal authority to act.
Because rules differ so much across the country, let’s use Ontario as a baseline example, which has one of the highest fee structures in Canada.

Here is an overview of Ontario’s probate structure:

• For estates up to $50,000, there is no probate tax in Ontario.
• For estates over $50,000, Ontario charges an Estate Administration Tax of 1.5 percent ($15 for every $1,000) on the value exceeding $50,000.

Case Study: John’s Estate in Ontario

Consider John, who passes away single and has not named specific beneficiaries on his registered accounts. His assets include:

• Principal home valued at $2,600,000
• RRIF valued at $1,300,000
• TFSA valued at $160,000
• Non-registered account valued at $2,300,000 (fair market value). The original purchase price (ACB) was $600,000.

In this example, the non-registered account has an unrealized capital gain of $1.7 million ($2.3 million fair market value less the $600,000 adjusted cost base).

All these assets would pass through his estate, resulting in a probate tax bill of $94,650.

Probate Tax = ($6,360,000 – $50,000) x 1.5% = $94,650

It is important to remember that probate tax and income tax are separate. While the probate tax in this example is approximately $94,650, the income tax resulting from the RRIF and non-registered investments could be significantly higher.

Are there ways people can reduce probate tax? Here are a few options to consider. Always speak to a legal or tax advisor before making any changes.

Named beneficiaries: If John had named his adult son, David, as the direct beneficiary of his RRIF and TFSA, those funds would generally bypass the Will and avoid probate. Although the RRIF may bypass probate, the estate may remain responsible for the tax liability unless the Will or beneficiary designation provides otherwise.

Spousal rollover for registered accounts: If John had a spouse and named them as beneficiary, the RRIF could generally transfer to the spouse on a tax-deferred basis. A TFSA can also pass to a spouse without probate if properly designated. Unlike a RRIF, TFSA withdrawals remain tax-free. On a side note, in Canada, naming a spouse as a “Successor Holder” allows the TFSA to seamlessly transfer to them and maintain its tax-free umbrella without affecting their own contribution room. If they are named only as a “Beneficiary,” additional administrative paperwork may be required after death.

Joint ownership: Assets held jointly with right of survivorship generally pass directly to the surviving owner and do not form part of the estate for probate purposes. The province of Quebec has separate rules. Make sure you understand your province’s rules before implementing.

Some people add an adult child as a joint owner to avoid probate. However, this can create problems, such as losing tax benefits on the family home, risking the assets if the child has debts, losing control over the assets, and causing family disagreements. Always get legal and tax advice before doing this.

Multiple Wills. Business owners sometimes have two Wills: a main Will and a secondary Will. The secondary Will can help avoid probate for certain assets, such as shares in a private company or personal loans. Multiple Wills are most used in Ontario and may not be available or effective in all provinces.

Trusts. Certain trusts can help avoid probate because the trust, not the deceased individual, owns the assets at death. Trusts may also be used to help carry out a person’s wishes after death, provide for dependent family members, protect beneficiaries, and maintain privacy. Trusts can be expensive to establish and administer, so they are generally more common in larger estates. Examples include Alter Ego Trusts (for individuals age 65 and older), Joint Partner Trusts, Testamentary Trusts, Henson Trusts, and Family Trusts.

Here is a quick checklist of what typically stays outside the estate:

• Registered accounts with valid named beneficiaries, such as RRSPs, RRIFs, TFSAs, and FHSAs (First Home Savings Accounts).
• Life insurance policies, as long as a specific person is named as the beneficiary (not “The Estate”).
• True joint properties, such as real estate held as “Joint Tenants with Right of Survivorship” (except in Quebec).
• Assets held in certain trusts, such as Alter Ego Trusts and Joint Partner Trusts, may also avoid probate because they are owned by the trust rather than the deceased individual.

Conclusion

Whether you need simple tactics such as updating your beneficiaries or more complex arrangements like creating multiple Wills and/ or Trusts, being proactive always pays off. Effective planning strategies can serve to reduce probate costs and most importantly, they will allow your wishes to be carried out seamlessly.

If you are looking for some guidance in reviewing and establishing your estate objectives, please reach out to us to set up a call with one of our experienced wealth advisors.

Your home is more than just a place to live. It’s usually your biggest investment. When you sell your home and its value has gone up, you may face a large capital gain. The good news is that Canada’s principal residence exemption (PRE) can reduce or even eliminate the tax on this gain. If your property was your principal residence for every year, you owned it, you won’t pay any tax on the gain. If it only qualified for some of the time, you may still get a partial exemption.

Eligibility Criteria

To qualify as a principal residence, your home must meet all of the following criteria:

• It’s a housing unit like a house, condo, cottage, apartment, mobile home, trailer, or houseboat.
• You own the property (by yourself or with others), whether as a freehold, leasehold, or through shares in a co-op that lets you live there.
• You, your current or former spouse or common-law partner, or any of your children lived in it at some time during the year
• You designate the property as your principal residence.

Designating Your Principal Residence and Calculating the Exempt Gain

You can choose only one property per family per year as your principal residence. If you own more than one, such as a cottage, you’ll need to pick which one to designate each year. If your property wasn’t your principal residence the entire time you owned it, the CRA uses this formula:

Exempt Gain = Total Capital Gain × (1 + Years Designated) ÷ Years Owned

The “+1 rule” generally provides an additional year of shelter to bridge the sale and purchase of different homes. However, it does not apply to years in which you were a non-resident of Canada for tax purposes. Because multi-property and non-resident situations can be complex, professional tax advice is recommended.

Land Size Rule

Many homeowners are unaware of the land size rule. If your property is larger than 1.24 acres, you must demonstrate that the additional land is necessary for the use and enjoyment of your home. Otherwise, only the first 1.24 acres may qualify for the exemption, and you may owe tax on any gain from the excess land.

Capital Losses on Principal Residences

You can’t claim a capital loss if you sell your principal residence for less than you paid. It’s considered personal use property, so losses aren’t tax-deductible.

Reporting the Sale to the Canada Revenue Agency

Since 2016, homeowners are required to report the sale of their home on their tax return, even if no tax is owed. This step helps make sure you receive the full benefit of the principal residence exemption. The process is straightforward and simply involves completing a few forms:

• Schedule 3: Capital Gains (or Losses) on your tax return
• Supplementary Form T2091(IND): Designation of a Property as a Principal Residence

If you forget to report the sale, there may be penalties. If you have questions or need help, your tax advisor or the CRA’s principal residence reporting page can provide more details and guidance.

Example 1 – Selling your only home

Jim and Sandra bought their house in 2011 for $300,000 and sold it in 2025 for $600,000. They lived there the whole time and didn’t own any other property.

• Purchased: 2011 at $300,000
• Sold: 2025 at $600,000
• Total gain: $600,000 – $300,000 = $300,000
• Years owned: 15 (2011–2025)
• Years designated as principal residence: 15 
• Tax owed: $0. Since the exempt portion exceeds the actual gain, the full $300,000 gain is exempt.

Example 2 – Owning a Cottage Too (Partial Exemption)

Using the example above, if Jim and Sandra had purchased a cottage in 2019 for $500,000 and sold it at the same time as the house for $700,000, the cottage would want to shelter the full cottage gain and the rest of years still available on the house. This is done because the cottage average annual gain is higher and will have a higher amount owed than the house. They would need to include $60,000 in taxable income because they were unable to shelter all the house gains.

Calculate the exempt portion for each property:

House

• Exempt gain: $180,000
• Taxable portion:
  $300,000 – $180,000 = $120,000 total gain
• Since only 50% of capital gains are taxable.
  Taxable income: $120,000 × 50% = $60,000

Cottage

Because the exempt gain on the cottage is higher than the actual gain, the entire $200,000 gain is exempt.

*These figures are simplified for illustrative purposes only. Actual results will depend on specific dates, fair market values, and other factors reviewed by the CRA and or your tax advisor.

Flipping Property

If you sell a home (or the right to buy one) that you owned for less than 365 days, the gain is usually treated as business income, not a capital gain. This means the principal residence exemption doesn’t apply in these cases. However, there are exceptions for certain life events (like death, divorce, separation, or a qualifying job move) that may allow you to treat the gain as a capital gain instead.

Changes In Use

If you change how you use your property, for example, from your home to a rental or the other way around, the government treats this as if you sold and then re-bought it at market value. This “deemed sale” may trigger a capital gain which you would need to report.

Under Canada’s tax rules, you may be able to defer the gain if you qualify under:

• Section 45(2): change from principal residence to income property
• Section 45(3): change from income property to principal residence

Farm Property

If you’re a farmer and you sell land used for farming that includes your home, special rules apply to dividing the value between your house and the farmland.

Takeaways

• The principal residence exemption is not automatic and you must report the sale and designate the property.
• Only one property per family can be claimed per year.
• The land size limit and non resident years can reduce eligibility.
• Homes owned for less than 1 year typically don’t qualify for the exemption.

Every situation is unique. If you own more than one property or have a complex scenario, consult a qualified tax professional for advice tailored to your needs. This document provides general information only and does not constitute legal or tax advice. “Information summarized from the Canada Revenue Agency: Principal Residence

At Cumberland’s latest client event, Laura Ross and Steve Sims led a discussion on a topic that is often misunderstood until it becomes urgent: what actually happens when an estate has to be administered, taxed, and divided. The session explored the planning decisions that can reduce tax, ease administration, and help families avoid conflict.

One of the clearest themes of the discussion was that probate often gets more attention than it deserves. In Ontario, probate is visible and relatively easy to calculate: No tax on the first $50,000 of estate value and 1.5% above that.

But probate is often not the largest cost an estate will face. As the presenters emphasized, taxes on death can be far more significant, particularly for higher-net-worth families with investments, cottages, or other appreciated assets.

One example illustrated this clearly: an estate with a $1 million RRSP and a $3 million investment portfolio could face roughly $45,000 in probate costs, but an estimated $750,000 in income taxes.

The speakers also highlighted a separate issue. Probate can create a period in which assets are effectively frozen while executors wait for court certificates, gather valuations, and deal with financial institutions. Laura Ross described real-world cases involving vacant properties, delayed sales, and executors who may have to carry costs personally while they wait for authority to act.

Proactive strategies that can help

From there, the discussion turned to the planning decisions that can improve outcomes before an estate is ever administered:

• Use planning tools intentionally. The discussion covered strategies such as beneficiary designations, multiple wills, trusts, and joint ownership. But both presenters stressed that these are not one-size-fits-all solutions. Joint ownership, in particular, was described as a “blunt instrument” that can reduce probate while also creating risk and confusion if it is not documented properly.

•  Plan for tax at death before it becomes urgent. Steve Sims walked through strategies such as spousal rollovers, RRSP or RRIF drawdowns, estate freezes, and life insurance as a source of liquidity. Families can often arrive at a better outcome if they understand the liabilities in advance and coordinate across their accountant, estate lawyer, and investment advisor.

• Think carefully about how property should be treated. The presentation also touched on principal residences, cottages, and foreign property. These assets can create not only tax issues, but also difficult decisions around who inherits what, how equalization should work, and whether certain properties can realistically be kept in the family.

• Address family dynamics directly. Blended families, children living outside Canada, and unequal inheritances can all create tension if a plan has not been thought through clearly. The presenters returned repeatedly to the idea that technical and financial planning are important, but communication matters too.

Bring us your questions

During the Q&A, attendees asked about personal holding companies, trustee structures, executor selection, and one of the most common practical problems Steve Sims sees in real life: missing records, especially cost base records for long-held assets.

Laura Ross also spoke candidly about the burden often placed on family executors and the situations in which outside support or professional trustee services may make sense.

At Cumberland, we believe probate, property, and family tax conversations are best had early, and with the right advisors around the table. We welcome your questions and are pleased to help you identify the right support.

Here are two accounts that can help you save for and purchase your first home.

Under the Homebuyers’ Plan (HBP), you can withdraw up to $60,000 from your Registered Retirement Savings Plan (RRSP) as a first-time home buyer. If you qualify, the withdrawn funds will not be included in your income. To qualify, you must be a Canadian resident, a first-time home buyer, and have a written agreement to buy or build a qualifying home. Repayment begins in the second calendar year following the withdrawal, and you have up to 15 years to repay the full amount.

For example, if you withdraw the full $60,000, you will need to repay $4,000 per year back into your RRSP over 15 years. Repayments must be designated as repaying the Homebuyers plan when filing your taxes, and you do not get to make it as a deduction on the repayment.

The second option is the First Home Savings Account (FHSA). This account allows you to contribute up to $8,000 per year, to a lifetime maximum of $40,000. Like an RRSP, your initial contributions are tax-deductible. Your investment growth inside the account is tax-free, and when you use the funds to buy your first home, they are not included in your income if the house qualifies as your first home. The one major benefit of the First Home Buyers plan (FHSA) compared to the Homebuyers plan (HBP) is that you do not need to repay the withdrawal.

In total, that is $100,000 in earmarked savings between the Homebuyers plan and First Home Savings plan that you can put to work for your first home. If you and your partner are both eligible first-time buyers, you could combine up to $200,000 across your accounts as a down payment.

Everyone’s situation is unique, so consider this a starting point for your research and planning. You will need to confirm whether you qualify as a first-time owner and double-check whether you still qualify if you have a partner who has a property or owned property in the past. You can review the details through the CRA site at CRA definition.

If you have any questions about your specific situation, a Cumberland Wealth Advisor is available to answer your questions.

At Cumberland’s most recent event, clients and special guests gathered for an inspiring evening with Dr. Susan Reid, award-winning author of Re-Visioning Retirement, to explore what it really means to design a fulfilling next chapter in life. Hosted by Alex von Schroeter, Cumberland Partner together with the firm’s Portfolio Managers, the session invited clients to look beyond the financial side of retirement and focus instead on what gives it purpose.

While Dr. Reid’s work centres on the retirement transition, her ideas resonate just as strongly with anyone entering a new chapter, whether becoming an empty nester, selling a business, or redefining life after a major change.

A Personal Turning Point

Dr. Reid began by sharing a personal story that set the tone for the evening. After retiring at 57 from a successful entrepreneurial, academic and consulting career, she expected to feel carefree, relaxed and accomplished. Instead, during a trip to France soon after her official retirement, she found herself overwhelmed by what she later recognized as a panic attack. She realized that she’d built her whole career around helping others find their vision but had never truly created one for herself.

That realization became the spark for her transformative new book and bespoke workbook. Drawing on decades of research in entrepreneurship and innovation, Dr. Reid reframed retirement not as an ending, but as an opportunity to “re-vision” life itself. With over 1.5 billion people worldwide now at or near retirement age, a number expected to double by 2050, the question, she noted, is no longer when to retire, but how to make it meaningful.

What It Means to Have a Vision

Throughout her presentation, Dr. Reid unpacked the elements of an effective personal vision, describing it as having a clear mental image of the future you’re passionate about, and something just beyond reach that acts as both a compass and a catalyst.

She illustrated this through her research into the three aspects of vision: clarity (seeing it vividly), scope (understanding who it touches), and magnetism (feeling drawn toward it). When these dimensions align, they create a sense of direction that can outlast any single role or title.

The FUN Framework

To help participants begin that process, Dr. Reid introduced what she calls the FUN Framework, short for Foundations, Uncovering, and Nurturing. It begins with rediscovering one’s authentic self: core values, natural skills, and enduring passions. Next comes uncovering the aspirational self, or the person you want to become. Finally, nurturing brings that vision to life by cultivating openness, paying attention to what energizes you, and amplifying your intentions through simple daily practices.

From Fear to Fulfilment

Blending academic insight with personal warmth, Dr. Reid’s talk resonated deeply with an audience of entrepreneurs, professionals, and retirees alike. The conversation that followed touched on fear, purpose, and the growing phenomenon of “encore entrepreneurship,” which refers to individuals launching meaningful ventures later in life.

Guests also reflected on how the same process of re-visioning can help navigate other turning points, such as career transitions, family changes, or new personal priorities that redefine what success means.

Many guests noted that while financial security remains essential, clarity of purpose may be the true measure of a successful retirement.

Looking Inward

As the evening concluded, Dr. Reid left guests with a timeless reflection from Carl Jung:

“Your vision will become clear only when you look into your own heart. Who looks outside, dreams; who looks inside, awakes.”

At Cumberland, we share that philosophy. Our role is to help clients connect their financial plans with their personal vision, so the next chapter is both well funded and deeply fulfilling. If you’d like to revisit your own retirement vision or discuss strategies for making it a reality, please contact your Cumberland Wealth Advisor.

For families and individuals who want to make a meaningful impact through charitable giving—without the complexity of setting up their own foundation – a Donor-Advised Fund (DAF) can be a powerful and practical solution.

What is a Donor-Advised Fund?

A DAF is a charitable investment account that allows you to make a donation now, receive an immediate tax receipt, and recommend grants to your favorite charities over time. Think of it as your own personal charitable foundation—just without the legal, administrative, and operational burden.

Why Consider a Donor-Advised Fund?

Here are some of the most compelling reasons:

Simplified Giving, Less Admin Headache
If you donate to several charities each year, you know how much work it can be at tax time to track down all the receipts. With a DAF, you make a single contribution, get one tax receipt, and decide later how and when to disburse your funds.

Donate Now, Decide Later
Let’s say you’ve had a liquidity event—like selling a business or inheriting wealth. You want to make a large charitable donation this year for tax planning purposes, but you haven’t yet decided which causes you want to support. A DAF lets you donate now and take your time choosing how the funds are distributed later.

Create a Perpetual Giving Legacy
Unlike a one-time donation, a DAF allows you to create an endowed fund that continues giving year after year. For example, a $1 million gift to a charity may be spent all at once. But a $1 million gift to a DAF could generate $50,000 in annual donations in perpetuity (based on a 5% minimum disbursement per CRA requirements), preserving the capital and sustaining your charitable impact indefinitely.

Family Involvement and Multi-Generational Giving
A DAF can become a shared family project. Your children or grandchildren can help select causes and manage the fund over time, keeping your legacy of generosity alive for generations.

Donate Appreciated Securities, Not Just Cash
One of the most tax-efficient ways to fund a DAF is by donating securities that have appreciated in value. You can avoid paying capital gains tax, while still receiving a full charitable receipt for the market value of the asset. For more on this strategy, see our article, Tax-Advantaged Giving as a Force for Good.

DAF vs. Private Foundation: A simpler solution

A private foundation offers control and legacy, but it also brings legal complexity, regulatory compliance, and administrative costs. A DAF offers many of the same benefits—without the setup time or overhead. It’s a “foundation-lite” option for those who want impact more quickly, at relatively lower cost, and with less complexity.

With a DAF, you can also take advantage of immediate tax benefits and operational simplicity today, while leaving the door open to evolve into a private foundation in the future if desired.

Charitable Giving with Cumberland

Whether you’re just starting to think about charitable giving or looking to take your philanthropy to the next level, a DAF may be the perfect tool. At Cumberland Private Wealth, we help families create smart, sustainable giving strategies—through DAFs, private foundations, and other vehicles tailored to your values and goals.

We also invite you to explore our Cumberland Foundations Circle—a community of purpose-driven donors, family foundations, and philanthropists sharing ideas, best practices, and insights on making meaningful impact.

If you’re interested in learning more or joining our next Foundations Circle event, reach out to your Cumberland Portfolio Manager.

Cumberland clients recently joined CEO Charles Sims for an insightful conversation with longtime friend of the firm and research visionary Barbara Gray. In her latest presentation, Unimaginable: The New Economic Frontier, Barbara delivered a powerful vision of what lies ahead in an AI-driven economy.

A Third Wave of Capital

Barbara presented her thesis that we are entering a new era defined by the rise of AI agent capital, a third form of capital that could rival and eventually surpass both human and physical capital in driving economic productivity.

Autonomous digital workers, such as customer service bots, scheduling assistants, and research agents, are already replacing human labour in select functions. But according to Barbara, we’ve only just begun.

“AI agent capital is an infinite resource,” she explained. “Its marginal cost is approaching zero, and its capabilities are growing exponentially. That combination will unleash a capital supply shock unlike anything we’ve seen since the Second Industrial Revolution.”

She argued that this shift is not evolutionary but exponential, following an “AI disruption curve” that compresses the impact of decades into a handful of years.

EQ Over IQ: A Changing Labour Landscape

One of Barbara’s most striking predictions was that up to 70% of virtual white-collar jobs could be displaced by AI agents by 2032, representing about 25% of the total U.S. workforce. These are roles once thought safe due to their intellectual requirements, but their virtual and rules-based nature makes them highly automatable.

The consequences could be profound: a reversal in income distribution where blue- and pink-collar workers with hands-on skills, emotional intelligence, and in-person roles become more valuable than remote white-collar professionals.

“EQ will be worth more than IQ,” Barbara emphasized.

Yet she also offered a hopeful countertrend: a boom in solo entrepreneurship, as individuals use AI agents to launch microbusinesses that blend human creativity and real-world presence with scalable digital leverage. She called this an “age of rediscovery,” especially for workers willing to reinvent themselves.

From Destruction to Discovery

Beyond the workplace, AI agent capital is poised to radically advance science and healthcare. Barbara cited a case where AI cracked a decade-long superbug mystery in just two days. This is proof, she says, of an impending Research Renaissance. She envisions a world of “co-scientists,” where humans and AI expand knowledge together at an unprecedented pace.

She also introduced the concept of autonomous organizations, which are corporate structures powered by AI, with minimal human layers, capable of coordinating entire workflows without traditional management hierarchies.

Strategic and Investment Implications

Following Barbara’s presentation, Cumberland portfolio managers Levon Barker, Peter Jackson, and Phil D’Iorio joined the discussion to explore how this transformation might influence portfolios.

Capital intensity is rising, especially for traditional software firms investing in AI infrastructure. Levon pointed to data centre buildouts and GPU demand as signs of how business models are evolving. Peter emphasized that companies with high R&D-to-sales ratios and large white-collar workforces could become key beneficiaries of AI-driven productivity gains if they execute well.

The team highlighted names like Salesforce, which is making AI deployment more accessible across industries, and semiconductor leaders such as Nvidia, ASML, and TSMC as foundational players powering the shift.

At Cumberland, we view this moment not as a flashpoint, but as a multi-year transformation. Our investment team is:

• • Evaluating whether AI investments are translating into superior returns on capital
  • Tracking AI-driven efficiency gains across sectors, especially in financial services and tech
  • Monitoring international holdings linked to the semiconductor complex, where innovation is accelerating
  • Exploring ways to integrate AI tools internally while preserving our human-centered client experience.

As Barbara reminded us, “This revolution will create phenomenal wealth, but it will also force us to rethink how and where value is created.”

We believe AI will reward adaptability, enable new forms of leverage, and reshape the architecture of wealth. Our goal is to stay ahead of these shifts so we can help our clients navigate them confidently and thoughtfully.

If you have any questions or would like to watch a replay of the event, please reach out to your Cumberland Portfolio Manager.

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.

When it comes to US tariffs on Canada, the headlines may paint a simple picture, but the reality is far more complex. Canada is a critical trading partner that directly supports US industries, jobs, and consumers in ways that aren’t always obvious. Here are five key facts about the Canada-US trade relationship that might surprise you.

1. The US Has a Merchandise Trade Surplus with Canada (When Energy Is Excluded)
While the overall US-Canada merchandise trade balance shows a deficit, this picture is skewed by energy imports. When energy is excluded, the US actually had a merchandise trade surplus of $28.6 billion with Canada in 2023, a trend which has held since 2007¹, driven by high-value sectors like manufacturing, machinery, and automotive parts.

Why it matters: This surplus supports thousands of American jobs and highlights how interdependent the two countries are. As Cumberland Chief Investment Officer Peter Jackson has commented, energy imports heavily influence the deficit figures, but in key sectors like manufacturing, the US gains more than it loses.

2. Canadian Crude Imports Create a Win-Win Through Refining Arbitrage
Canada exports about four million barrels of crude oil to the US every day, accounting for 21% of US daily consumption². Canadian heavy crude oil flows into US refineries at a discount that can generally be estimated at $10–$20 per barrel as compared to lighter WTI crude³. US refineries process this Canadian heavy crude into gasoline and diesel, which are sold in the domestic market at competitive prices. Meanwhile, the US exports some of its own lighter crude globally at a premium.

The takeaway: As we have noted, this refining arbitrage benefits US refiners, oil producers, and consumers by keeping fuel prices low while allowing the US to profit from exports.

3. Canada Buys More US Goods Than Any Other Country
In 2023, the US exported $449 billion worth of goods and services to Canada, making it the US’s #1 export destination⁴. From machinery to precision instruments and aircraft, Canadian businesses are major consumers of American innovation. And it’s not just confined to border states—it’s a national relationship. In fact, 36 US states, from Michigan to Texas, rely on Canada as their #1 export destination⁵.

The impact: Industries across the US depend on Canadian demand, and disruptions in trade could ripple through local economies nationwide.

4. Canadian Imports Drive US Manufacturing Efficiency
Nearly 70% of US imports from Canada are used as inputs for the production of American goods⁶. From automotive parts to metals and chemicals, Canadian imports fuel US factories, enabling them to remain competitive globally.

Why it’s important: Tariffs on Canada could increase input costs for US manufacturers, reducing their ability to compete internationally.

5. Tariffs on Canada May Hurt US Consumers More Than Canada
Because Canadian energy and raw materials play such a large role in US supply chains, imposing high tariffs would likely lead to higher costs for American manufacturers and consumers. Tariffs on key imports, like energy and automotive parts among others, could raise production costs, making American goods less competitive globally.

It’s also critical to note that, while Canada’s overall trade imbalance with the US has increased since Trump’s first term, largely driven by higher energy prices, it is still dwarfed by the imbalances with China (close to US$300 Billion) and the Euro Area and Mexico (each around US$200 billion +/-)⁷.

The twist: Canada’s close trade ties create efficiencies that directly benefit the US economy. And, while Canada has been portrayed as a major contributor to the US trade deficit—in reality, it is not. Targeting it with tariffs is more about political narratives than economic necessity.

In our view, a closer look at the trade data reveals that Canada is not just another trading partner—it’s an essential economic ally to the U.S. As tariff debates unfold, acknowledging this deep interdependence could pave the way for more strategic solutions that ultimately benefit both nations.

At Cumberland, we’re closely tracking these developments to assess their impact on markets and position our portfolios accordingly. Our focus remains on helping clients navigate uncertainty while balancing attractive investment opportunities and prudent risk management.

Impact investing continues to evolve as more charitable foundations dedicate time and resources to this transformative approach. On Tuesday, November 12th, Cumberland was honoured to host members of the philanthropic community for a dynamic panel discussion featuring three leaders making strides in impact investing.

The event opened with remarks from Alex von Schroeter, Cumberland partner, who welcomed both new and familiar faces to this second Cumberland Foundations Circle event of 2024. She introduced moderator Charlie Sims, CEO of Cumberland Private Wealth Management, and the esteemed panelists:

• Upkar Arora, Founder and CEO of Rally Assets and Managing Partner of Realize Fund L.P.
• Andrew Spence, Founder and CEO of Spence Strategic Consulting Group and Chair of the Investment Committee of Toronto Foundation
• Riz Ibrahim, President and CEO of The Counselling Foundation of Canada

Defining Impact Investing

The conversation began with Charlie asking Upkar to define impact investing. Upkar explained the “four dimensions” that his team uses in managing Rally Asset’s impact funds:

1.  A positive impact must be intentional from the start
2. The impact must be real and tangible
3. The impact should be measurable
4. There should be an expectation of financial return

Upkar also clarified impact investing versus some of its related categories:

“There are lots of other terms like sustainable, responsible, ethical and so forth. ESG (Environmental, Social, Governance) is often integrated or confused with impact investing and, from our perspective, ESG is not the same. [With ESG], you’re looking at how the world is affecting a company, whereas impact investing is about how a company is affecting the world.”

Transforming Portfolios

Andrew Spence shared the Toronto Foundation’s journey toward a target of 70% impact investments by 2030. This required shifting core beliefs, rewriting the Investment Policy Statement, and engaging specialized advisors.

“We have about $100 million out of our $400 million now invested in intentional impact opportunities. They are delivering the returns they promised, and we are doing more good while getting the return.”

Andrew also addressed some of the governance challenges that can come with impact investing:

“When does an investment become a grant? If a well-deserving enterprise cannot stand on its own and you write off $300,000, how do you justify that to the person you give $10,000 a year to? We’re slowly getting that evaluation process in place, but that’s what keeps me up at night as a board member.”

Mid-Journey Lessons

Riz Ibrahim shared how The Counselling Foundation of Canada began exploring impact investing about a decade ago, and described his progress as “mid-journey.” He highlighted their breakthrough moment – providing a $200,000 loan guarantee to skilled immigrants seeking accreditation in Canada:

“We were using our balance sheet, not our asset base. It was within our wheelhouse. We understood what the impact could be, and the risk was nominal. We really liked it, and it got people thinking, ‘Okay this is something we can get into.’”

Over nearly an hour, the panelists provided invaluable insights into the purpose, strategy, and governance of impact investing and philanthropy more broadly. Their expertise inspired meaningful reflection on how foundations can maximize their resources to drive positive change.

Join Us to Learn More

Cumberland Foundations Circle was created to help families, foundations, professionals, and experts come together in a dynamic set of discussions to share their knowledge and experiences across an array of philanthropic topics, including impact investing.

Interested in learning more? Contact us to access a video replay of this event or to join future discussions.