All About Estates

Derek de Gannes

Total 72 Posts Website
CW LLP is a firm of professional advisors providing a comprehensive suite of services to a diverse client base. Our experienced and skilled team can provide personal and corporate solutions to maximize growth potential, wealth and value. Email: ddegannes@cwcagroup.com

Principal residence and the change in use

It is not unusual for find the value of a deceased’s home makes up a significant part of their net worth and estate value on death. Often there is an automatic reliance on the principal residence exemption to tax exempt the gain on the deemed sale triggered on death.  What…

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Application of Attribution Rules to T1135 Reporting

The Canada Revenue Agency (CRA) was asked to consider a situation where spouses A and B jointly acquired foreign property for $150,000.  A paid $75,000 in cash and gave $75,000 to his spouse to jointly buy the property.  The question asked was how would the income and gains be shown…

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Death of taxpayer – timing of the final return

Some timing relief is granted to the deceased’s personal representative when a death occurs before the deceased has filed a tax return to report income received in the year. Generally speaking, the final return is due on or before the following dates: If the death occurred between January 1 and…

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Taxpayers have rights too!

As a Canadian taxpayer either alive or their estate, you (or your personal representative) has rights in your dealing with the Canada Revenue Agency (CRA) as follows: To receive entitlements and to pay no more and no less than what is required by law. To service in both official languages….

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Do I need to apply for a trust account number?

Attention turns to the filing of T3 trust income tax and information returns with the end of March in sight.  If you are trustee of a new Trust you may wonder if an identification number is required? Like a social insurance number or a business number, the trust identification number…

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Estate Distributions

During the administration of an estate, taxable income can be generated in the form of interest, dividends, capital gains, etc. after all debts and specific bequests have been paid. The Canada Revenue Agency (CRA) was asked if an estate could distribute the remaining taxable income to the residual beneficiaries. The CRA…

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GAAR and 21-year rule planning

The Canada Revenue Agency (CRA) was asked to comment on the implications of a transfer of property from a discretionary trust (Old Trust) to a Canadian corporation wholly owned by a new discretionary trust (New Trust). The 21-year deemed disposition rule provides that every 21 years in a family trust’s…

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Settlement Payments Determinable After Death

The Canada Revenue Agency (CRA) was asked whether certain settlement payments are taxable in the hands of the deceased taxpayer where a taxpayer dies prior to obtaining a determinable right to the payments. A class action lawsuit was brought forth on behalf of former members of the Canadian Forces.  A…

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CPP Death Benefit

Whether a CPP/QPP death benefit is to be taxed in the hands of the beneficiary or in the hands of the estate is determined by the terms of the will.

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Registered Disability Savings Plan Rollover – Or Not

The CRA was asked if a deceased registered pension plan (“RPP”) member’s pension benefit could be transferred tax-free to the registered disability savings plan of the RPP member’s financially dependent infirm child .

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