All About Estates

Category: Tax Issues

Total 113 Posts

55(2) and Pipeline Planning

The Canada Revenue Agency (CRA) was asked to comment on the application of subsection 55(2) of the Income Tax Act to a hypothetical pipeline plan implemented on or after the date of death.  Their answer was both comforting and not surprising. When engaged, subsection 55(2) has the effect of converting…

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Individual Pension Plans Revisited

A fellow blogger wrote very eloquently late last week about succession planning for family owned businesses. Regrettably, as she noted the statistics for the successful transfer of family businesses are not very good. With the introduction of the new tax proposals, the challenge for a successful transfer of business to…

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Succession Planning

In this blog I’d like to remind readers that the idea of “keeping it in the family” is still the most common response business owners provide when asked what they would like to see happen to their business after they have passed away. In fact, many business owners initially think…

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Private Company Tax Proposals

October 2, 2017 saw the end of the 75 day consultation period offered by the Department of Finance.  The public response to the proposed rule changes was significant with the general public, industry bodies and professional advisors all weighing in on the measures.  So, what now? At a conference organized by…

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Further Reform Needed to Support Disability Benefits Recipients

As my fellow bloggers have recently written, changes have been made to the Ontario Disability Support Program (“ODSP”) effective September 1, 2017, three of which are of particular importance for estate planning purposes: The amount a benefits recipient can receive in the form of gifts, trust distributions, and life insurance…

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Control in the Valuation of Business Interests for Estate Planning

From time to time, I am asked to prepare, review or comment on structures for estate planning purposes with a mind to valuation issues. A common valuation issue is control and whether or not the value of the business interest(s) in the estate plan should be discounted for lack of…

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Transfer of corporate-owned life insurance

It is not uncommon to see corporate owned life insurance transferred to a shareholder particularly when the company is being sold. The Canada Revenue Agency (CRA) was asked to comment on a set of facts and their response was no surprise given the relatively new rules in this area of…

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Will Planning for Beneficiaries

In what might be one of the last pipeline transactions my office will advise on (depending on the outcome of the Government of Canada tax proposals), I ran into an unfortunate situation which served to highlight a fundamental aspect of estate planning: Planning for your beneficiaries. Recently, I reached out…

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Morneau Stands Firm on Tax Proposals

Minister of Finance Bill Morneau (“Morneau”) met with small-business owners in British Columbia earlier this week to hear their complaints about and concerns with the tax proposals which were launched on July 18, 2017. With a consultation process of only 75 days, doctors, farmers, small business advocacy groups and various…

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GIFTS – Some Additional Thougths

Recently, I wrote about the gifting of cash or assets during one’s lifetime as an alternative method of distributing your wealth (beyond what you need to live on comfortably) and possibly avoid taxes (probate, income etc.) at time of death. I suggested that your heirs could use the funds in…

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