How wealthy Canadians are navigating global uncertainty and volatility 

Today’s environment is shaped by global uncertainty — wars, shifting power dynamics and economic instability. All of it reaches into everyday life, even altering how people hear national anthems at sporting events.  

Despite these complexities, many successful wealth creators — especially owner-business managers — focus so intensely on their enterprises that they neglect their personal financial planning. 

Inflection points like the one we’re in today present an opportunity to reassess financial strategies, fortify defenses and position for future growth. 

High-net worth (HNW) and ultra-high-net worth (UHNW) individuals and families in Canada have five key concerns — taxes, estate planning, asset protection, family dynamics and investment performance. By staying informed, strategic and adaptable, Canada’s wealthiest can turn uncertainty into lasting opportunity. 

Canada’s layered tax structure 

Income tax rates range from 15 – 33% federally, and there are additional provincial/territorial taxes topping out at slightly below or slightly above 50% on an aggregated basis depending on province/territory.  

Currently 50% of capital gains are taxable, even though the inclusion rate was nearly set to rise to two-thirds but for Parliament being prorogued on Jan. 6, 2025. With a federal election looming, debate continues on whether this increase may be implemented in the future, which is just another reminder that things in the tax world do change materially from time to time. And while Canada lacks a formal estate tax, deemed disposition rules treat assets as if they were sold at fair market value upon death, triggering capital gains taxes. 

Four strategies: 

1. Income splitting: Using spousal RRSPs, family trusts or gifting structures to distribute income across family members in lower tax brackets. 

2. Capital gains management: Tax-loss harvesting to offset gains, leveraging capital gains exemptions for qualified investments. 

3. Charitable giving: Donations to registered charities can provide significant tax credits. 

4. Corporate structures: Incorporating can offer preferential tax rates and deferral opportunities. 

Given Canada’s evolving tax landscape, consulting with skilled advisors is crucial to managing liabilities effectively. 

Structuring wealth for future generations 

Without proper planning, estate taxes and family disputes can erode wealth. Strategies such as trusts, gifting during one’s lifetime and optimizing estate structures help minimize tax liabilities and ensure smooth intergenerational transitions. 

The complexity of estate planning increases with multiple heirs, business succession or cross-border assets. Factors like marital status, residency and jurisdictional tax rules must be carefully navigated to prevent costly missteps. 

Three strategies: 

1. Regular estate plan reviews: Ensure wills, trusts and tax structures remain aligned with legal and regulatory changes. 

2. Family communication: Transparent discussions can prevent future conflicts. 

3. Professional guidance: Specialized tax and estate professionals provide tailored strategies for complex wealth structures. 

Shielding wealth from unseen threats 

As wealth grows, so do risks — including cyberattacks, creditor claims, identity theft, financial fraud and legal disputes. Asset protection strategies are essential in an era where digital security is as critical as traditional financial safeguards. 

Three protective measures: 

1. Comprehensive insurance coverage: Permanent and term life insurance, disability insurance, critical illness insurance, property insurance, business insurance and annuities. 

2. Cybersecurity and fraud prevention: Enhanced digital security protocols to prevent cyber theft and identity fraud. 

3. Diversification: Reducing risk exposure through diversified investments across asset classes and geographies. 

The family dynamics of estate planning 

Estate planning is rarely just a financial exercise — it’s deeply personal. Family businesses, multiple heirs, blended families and differing financial philosophies can create tension. Without proper planning, even well-intentioned estate plans can lead to disputes. 

Three solutions: 

1. Proactive succession planning: Address leadership transitions and inheritance structures before conflicts arise. 

2. Family governance models: Establish decision-making frameworks to foster continuity. 

3. Neutral third-party advisors: Mediators can facilitate fair resolutions, ensuring long-term harmony. 

Balancing asset growth and preservation 

HNW and UHNW Canadians typically hold diverse investments — including public equities, private assets, domestic and international real estate, alternative investments and digital assets like cryptocurrency. Market volatility, geopolitical instability and inflation create future-return uncertainty. 

Three strategies: 

1. A long-term investment perspective: Avoid reactionary moves driven by short-term market fluctuations. 

2. Diversification beyond borders: Geographic and asset class diversification mitigate domestic economic risks. 

3. Adaptive portfolio management: Work with top-tier advisors to rebalance portfolios in response to evolving conditions. 

Navigating uncertainty 

Wealth planning today requires more than monitoring traditional economic indicators like interest rates, inflation and GDP growth. National security risks, trade policies, technological disruptions and geopolitical shifts now play a crucial role. 

For HNW and UHNW Canadians, the key to resilience lies in two guiding principles. 

The anchor — a clearly defined core purpose and financial philosophy that informs decision-making. And the compass — a strategic plan that adapts to emerging risks and opportunities. 

Passive wealth management is no longer an option. The ability to anticipate and act is what separates those who preserve and grow wealth from those who suffer losses. 

Consider Prem Watsa, founder and CEO of Fairfax Financial Holdings, and often called Canada’s Warren Buffett. 

During the 2008 financial crisis, Watsa successfully navigated uncertainty by diversifying across sectors and geographies, anticipating market downturns and using credit default swaps to hedge risk and of course maintaining a long-term investment perspective. 

His approach underscores the importance of foresight, risk management and adaptability — qualities essential in today’s environment. 

This too is a time for Canadian HNW individuals and families to reassess their financial strategies. Proactivity is critically important.