All About Estates

Month: February 2016

Total 17 Posts

THE RECOVERY TAX BLUES

I previously blogged about the new qualified disability trust (“QDT”), which became law on January 1, 2016. In my previous blog, I left a discussion of the “recovery tax” for another day. Looking outside as I write this, it appears the proverbial rainy day has arrived!

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Capacity to execute a Will or POA: “Who and why” may be more important than “what”

I write as a clinician directed by case law or statutory law when assessing the capacity of a testator or an individual executing Powers of Attorney. The criteria set out in case law (Banks v Goodfellow) for testamentary capacity have traditionally been weighted toward the notion of “what” the testator…

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INCOME FROM TRUST – WHEN PAYABLE IS NOT PAID

Fellow bloggers and I have written in the past about how income from a Trust is not deemed payable to a beneficiary (pursuant to relevant sections of the Income tax Act) unless it has been paid to the beneficiary or the beneficiary has the legal right to demand payment during…

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Newly Released RDSP Circular

On February 10, the CRA released a circular on Registered Disability Savings Plans (RDSPs, or RDSP, in the singular). A RDSP is a plan that provides savings for individuals eligible to receive the disability tax credit (DTC). To qualify for the DTC, a physician must certify that the intended recipient has a “severe and prolonged mental or physical impairment”.

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Planning For The ‘Unknown’.

We all know someone who has taken ill or has been critically injured. No one expects that life as they know it can change drastically from one moment to the next. How can you plan for the ‘unknown’?

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Sale of Ferrari Highlights an Estate Tax Avoidance Method

The sale of a 1957 Ferrari 335 Sport Scaglietti for 32 million euros (about $35.8 million US, or $50.2 million Canadian) earlier this month set the record for the most expensive car ever sold at an auction, the New York Times reported. It also made waves for what the Times…

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Leap Year and the Tax Filing Deadline

With 2016 being a leap year there is an extra day in February which means there is further action required for those responsible for filing trust income tax and information returns.

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BEWARE OF HIDDEN TAX CONSEQUENCES

A recent Alberta Court of Queen’s Bench decision in Morrison v. Morrison 2015 CarswellAlta 2249 (Alta.Q.B.) reminds advisors and clients alike of (i) the need to consider the income tax consequences of not only their overall estate plan, but components within it, and (ii) the importance of stating intention expressly and directly, particularly when one child may be benefitted more so than other children. The facts in Morrison were not unusual nor is the fact that, despite the relatively modest dollar amounts involved, the matter went to trial – an unfortunate result for all concerned.

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Seniors Do Have Sex

Do you think seniors stop having sex once they reach a certain age? Adult children don’t typically want to hear about their parent’s sexuality and vice versa; however professionals need to be comfortable in asking and answering questions. Regardless of your own personal definition of sexuality and what it means for different age groups, it should include an understanding of safe sex and sexually transmitted disease awareness.

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Court Guidelines for Physician Assisted Death

In light of the recent decision of the Supreme Court of Canada granting the Federal Government an additional 4 months to draft and pass physician assisted death legislation, the Ontario Superior Court of Justice has released practice directions for the legal profession and the public where a court order is sought allowing a patient to take his/her own life with the help of a doctor. This blog discusses those guidelines.

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