Archive for the ‘Succession Planning’ Category

Discretionary Family Trust and the “Kiddie” Tax

Monday, March 17th, 2014

In general, when income from a family trust asset (usually owned and or operated by parties related to the trust) is distributed to a beneficiary who is not an adult at the time of distribution, the income is taxed at the highest marginal rate of tax known as “tax on ...

TRUST DISTRIBUTIONS AND ATTRIBUTION: BEWARE!

Monday, February 10th, 2014

When advising a client about distributions from a family trust to the beneficiaries, I am usually careful to point out that the money is technically theirs and to be careful to get their approval and/or consent when you have them reimburse the funds for expenses you have incurred on their ...

BENEFICIAL OWNERSHIP AND DEEMED DISPOSITIONS: A CAUTIONARY TALE

Friday, December 13th, 2013

The Canada Revenue Agency (“CRA”) was recently asked to provide a ruling on the legal disposition of capital property in a specific fact situation. The ruling provided a cautionary reminder to trustees and executors when determining ownership of capital property for tax purposes. Briefly, a woman purchased a house that she ...