Estate Planning for Tech Professionals in Canada

Your equity compensation, digital assets, and corporate structure require an estate plan built for the complexity of a tech career.

Estate planning for a tech professional in Canada is fundamentally different. A standard will is necessary but not sufficient when net worth includes unvested RSUs, stock options, ESPP shares, cryptocurrency, equity in a private startup, and a CCPC with retained earnings.

For vested RSUs at death, the CRA applies the deemed disposition rule - shares are treated as sold at fair market value, triggering capital gains on the final return. The estate must have liquidity to pay this tax without forcing other asset sales.

For unvested RSUs, treatment depends entirely on the equity plan: some accelerate vesting on death, others forfeit. A tech professional with $500,000 in unvested RSUs should review the plan terms and ensure their estate plan addresses both scenarios.

Asset Treatment at Death for Tech Professionals

Asset Type	Deemed Disposition Treatment	Key Planning Consideration
Vested RSU shares	Capital gain on accrued appreciation	Ensure estate liquidity for tax payment
Unvested RSUs	Depends on equity plan terms	Review plan for acceleration vs forfeiture
Stock options (in-the-money)	Employment income on exercise	Limited window to exercise before expiry
TFSA	No tax - passes to successor holder or beneficiary	Name spouse as successor holder, not beneficiary
RRSP/RRIF	Full value included in income on final return	Rollover to spouse defers tax; adult children pay full tax
Cryptocurrency	Capital gain on accrued appreciation	Executor must have access to wallets and keys
CCPC shares	Capital gain on accrued appreciation	Estate freeze can cap this liability

Including Digital Assets in an Estate Plan

Tech professionals are more likely than any other demographic to hold significant digital assets: cryptocurrency, NFTs, domain names, SaaS equity, online business revenue, and digital intellectual property.

A comprehensive plan includes a digital asset inventory, secure storage of private keys and seed phrases (not in the will, which becomes a public document), and specific instructions to the executor.

Cryptocurrency held in a cold wallet that the executor cannot access is effectively lost to the estate.

Estate Planning for Incorporated Tech Contractors

At death, CCPC shares are deemed disposed of at fair market value, triggering capital gain on the corporation - including retained earnings, investment portfolio, and goodwill. This can be substantial after 10-20 years of incorporation.

Corporate-owned life insurance is one of the most tax-efficient tools available: the death benefit is paid to the corporation tax-free and credited to the Capital Dividend Account (CDA), then distributed to the estate as tax-free capital dividends.

An estate freeze caps the value of CCPC shares at today's value and transfers future growth to a family trust or children's shares - a powerful strategy for senior contractors. See incorporating a tech business.

Probate Minimization and Powers of Attorney

Ontario probate is approximately 1.5% of estate assets - $45,000 on a $3 million estate. Naming beneficiaries directly on TFSAs, RRSPs, RRIFs, and life insurance bypasses probate entirely.

A multiple-will strategy uses a primary will for assets requiring probate and a secondary will for private company shares - significant savings for incorporated contractors.

A power of attorney for property is essential for incorporated contractors. Without one, no one has legal authority to manage your corporation if you become incapacitated until a court appoints a guardian.

Working with SG Wealth on Your Estate Plan

SG Wealth builds estate plans that account for equity compensation, digital assets, incorporated structures, and the specific tax exposures of a high-income tech career.

We coordinate with your estate lawyer and accountant so every recommendation lands in a cohesive plan.

Book a consultation to review your current estate plan and identify gaps before they become a burden for your family.