All About Estates

Category: Liability

Total 18 Posts

Death Starts the Clock Ticking on the Limitation Period for Contribution and Indemnity Claims

Conflicting Limitation Periods In Ontario, as in other Canadian jurisdictions, various statutes establish limitation periods within which an injured party can commence a claim against a wrongdoer, including against the estate of a deceased wrongdoer. Under sections 4 and 5 of the Limitations Act, 2002, S.O. 2002, c. 24 ,…

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A Brief Review of Solicitor’s Negligence

Claims against solicitors for negligence often arise in the context of estates cases, whether it be the failure of a lawyer to ensure that a testator’s wishes are accurately reflected in his/her will, to neglecting to confirm the testator had the requisite capacity and was not subject to undue influence…

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Ontario’s Non-Resident Speculation Tax

Recently the Government of Ontario followed the heels of the British Columbia Government by introducing a “non-resident speculation tax” (“NRST”). The NRST will apply to the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe (the “GGH”) by individuals who are not Canadian citizens…

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Limited Retainers, Lawyer Liability and Limitation Periods

The recent Court of Appeal (“ONCA”) decision of Meehan v. Good, 2017 ONCA 103 (“Meehan”), reminds lawyers that the duty of care owed to their clients is extensive, and may operate beyond a limited-scope retainer. In Meehan, the plaintiffs, Michael and Anne Meehan, brought a claim against their lawyer, John…

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LATE FILED ELECTION TO SPLIT PENSION INCOME

While we are on the subject of joint elections to split pension income in the year of death: What if, as trustee of the estate, you discover that the deceased and his spouse did not split eligible pension income in the years prior to his year of death. Can you…

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CAPITAL DIVIDEND ACCOUNT ELECTIONS AND THE DATE GONE WRONG?

As I mentioned in a previous blog, the capital dividend account (“CDA”) is often a central feature of tax planning for individuals with private corporations with the opportunity to make tax-free distributions to shareholders on the disposition of certain capital assets. It gains particular focus in estate planning scenarios and…

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PRINCIPAL RESIDENCE EXEMPTION AND BENEFICIAL OWNERSHIP – AN UPDATE

We know that if a property qualifies as a principal residence, an exemption can be claimed to reduce or eliminate any capital gain otherwise realized on the disposition of the property. Under the Income Tax Act, one of the requirements for a property to qualify as a taxpayer’s principal residence…

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TRANSFER OF PROPERTY FROM PERSONAL TRUST TO BENEFICIARY

Recently, the Canada Revenue Agency (“CRA”) was asked to comment on a scenario involving a transfer of real estate from a Personal Trust to a beneficiary where the beneficiary also assumed a mortgage on a property. In past interpretations, the CRA noted that the transfer of assets from the Trust…

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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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RESIDENCY OF A TRUST – A QUESTION OF MANAGEMENT AND CONTROL II: A View from the CRA Bridge!

Last fall I wrote about the Supreme Court of Newfoundland and Labrador being asked to rule on the specific issue of residency which would have significant tax implications to the trust depending on the Court’s determination. In Discovery Trust vs Canada (National Revenue), 201201G6615, at issue was whether a trust…

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