Section 70(5) of the Income Tax Act triggers a deemed sale of every capital asset you own at death — your private corporation, your rental properties, your vacation home. The tax bill is due in 6 months. Most business owners and property investors in BC and Alberta have never seen their number. We show you that number before it becomes your family's problem.
Corporate Estate Risk
Total tax on a $3M BC corporation without planning
Could be $802,233 with a pipeline strategy
See the corporate math →Property Estate Risk
Estate tax on a BC owner with 2 rentals and a cottage
Includes CCA recapture at 53.50% + BC probate
See the property math →Own a corporation AND properties? The combined exposure is the largest number.
Combined corporate + property exposure
of Canadians have no estate plan
BC vs Alberta probate on a $2M estate
The Lifetime Capital Gains Exemption increased to $1.25 million for qualifying small business shares. If you're planning an estate freeze or pipeline transaction, the timing matters — learn more about current rates.
Subsection 70(5) of the Income Tax Act is deceptively brief. It says that at the moment of death, you are deemed to have disposed of every capital property you own at fair market value. Nothing is actually sold. But CRA treats it as if everything was — your corporate shares, your rental condos, your commercial buildings, your cottage. The capital gains tax is calculated on your final return, due within six months.
For incorporated business owners, this creates the double taxation problem: capital gains tax on the deemed disposition of shares, followed by a deemed dividend when the estate redeems those shares from the corporation. Without planning, the combined effective rate can exceed 75%.
For multi-property owners, every property beyond your principal residence triggers a separate tax event. Rental properties face an additional hit: CCA recapture on all depreciation you ever claimed, taxed at the full marginal rate — 53.50% in BC, 48.00% in Alberta.
Whether you own a corporation, rental properties, or both — the number exists whether you plan for it or not. We help you discover it now, while you can still do something about it.
Construction companies, trades, professional corporations, real estate firms, medical practices. Your private company shares face deemed disposition at death. A $3M BC corporation could owe $2.27M in combined tax without planning — or $802,000 with the right strategy. The difference is $1.46 million.
Learn about corporate estate riskRental portfolios, vacation properties, commercial real estate, bare land. Every property beyond your principal residence triggers capital gains at death. Add CCA recapture on rental properties at the full 53.50% BC rate, and a typical multi-property owner faces $200,000 to $350,000 in estate tax they never planned for.
Learn about property estate riskIf your partner dies without a properly funded buy-sell agreement, you could be in business with their spouse or estate. Cross-purchase and entity redemption agreements — funded with corporate-owned life insurance — ensure business continuity and fair value for both sides.
Learn about buy-sell agreementsNot sure which applies to you?
The Legacy Scorecard covers both corporate shares and property holdings in one assessment. Eight questions. 90 seconds. It figures out which exposure applies to you.
Take the Legacy ScorecardTake the Legacy Scorecard in 90 seconds or use our Estate Tax Calculator. We estimate your Section 70(5) exposure based on the value of your corporation, properties, or both — using current BC and Alberta tax rates.
We walk you through the strategies that apply to your situation: pipeline planning, estate freezes, alter ego trusts, PRE optimization, spousal rollovers, corporate-owned life insurance. No jargon. Just the math and what it means for your family.
If you decide to act, we build a personalized plan that eliminates or funds your estate tax liability. The goal is simple: your family keeps what you built.
The Legacy Scorecard shows your Section 70(5) exposure based on your specific situation. No email required. No sales pitch. Just math.
$3M BC Corporation — No Planning
Capital gains tax: $802,233
Deemed dividend tax: $1,466,211
Total tax
Effective rate
$3M BC Corporation — With Pipeline Strategy
Without:
With plan:
Total tax
Effective rate
Tax saved: $1,466,211
64.6% reduction in estate tax liability
BC Owner — 2 Rentals + Kelowna Cottage
Capital gains tax: $178,100
CCA recapture: $25,550
BC probate: $43,050
Total
BC Cross-Sell — $3M Corp + Rental Property
Corporate tax (after LCGE): $393,400
Property tax + recapture: $87,650
BC probate: $79,450
Total
All calculations use confirmed 2025–2026 tax rates. Capital gains inclusion rate: 50%. BC top combined capital gains rate: 26.75%. Alberta: 24.00%. Figures are illustrative — your number depends on your specific situation.
NE Capital was founded on one principle: business owners and property investors deserve to see their estate tax number before their families have to pay it. We are not a bank. We are not an accounting firm. We are a licensed estate risk education practice serving British Columbia and Alberta, led by Aman Singh Tiwana.
We don't lead with products. We lead with the math. If the math shows you have a problem, we show you the strategies that solve it. If life insurance is part of the solution, we explain exactly why and how — with numbers, not sales pitches.
Every conversation starts the same way: "Here is your number. Here is what it means. Here is what you can do about it."
We don't prepare tax returns or replace your accountant
We don't sell investments or manage portfolios
We don't draft legal documents (we work with your lawyer)
We show you the estate tax math your CPA may not have time to explain — then coordinate with your existing advisors to implement the solution.
Licensed in BC & Alberta only. Currently serving Surrey, Vancouver, Kelowna, Abbotsford, Victoria, Calgary, Edmonton, and surrounding areas.
Your corporation accumulates retained earnings every year. Your properties appreciate every year. Every year you wait, the Section 70(5) deemed disposition tax bill at death gets larger.
Meanwhile, the cost of life insurance increases every year you age. A policy at 50 costs roughly 40% less than the same policy at 60. And your insurability is not guaranteed — a single health event could make coverage unaffordable or unavailable.
70% of Canadians have no estate plan. The ones who act early pay less for insurance, lock in lower tax liabilities through estate freezes, and give their families certainty instead of chaos.
The Legacy Scorecard estimates your estate tax risk level across corporate shares and property holdings. Eight questions. No financial statements required. You get your risk level and estimated exposure range immediately.
No sales pitch · Education only · Results on screen
NE Capital operates under NE Financials Inc. Insurance products provided through World Financial Group. This content is educational and does not constitute tax, legal, or financial advice. Consult qualified professionals for advice specific to your situation.
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