Gifting a corporation from a personal will
Brian N. Radnoff and Sahar Cadili of Dickinson Wright draw our attention to an interesting Ontario Court of Appeal case which changes how corporations and their assets can be transferred by a Will by their shareholder. The law in some other provinces (and, until Trezzi, arguably the law in Ontario) states that a sole shareholder can never effectively gift corporate assets because they are owned by the corporation. The corporation is, after all, a separate legal person. In Trezzi v. Trezzi, 2019 ONCA 978, however, Ontario’s highest court decided that the sole shareholder of a company could in his will gift certain corporate assets to his son. The gifts were challenged by other family members on the basis that the assets being gifted were not owned by the deceased, but were owned by the company. The Court of Appeal
Radnoff and Cadill put the reasoning in a nutshell:
For the full article: Trezzi v. Trezzi: Can You Gift Assets You Do Not Own? (Nov. 10, 2020)
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