Archive for the ‘Trusts’ Category

TESTAMENTARY TRUSTS REDUX

Wednesday, April 29th, 2015

The will of a deceased taxpayer created a testamentary trust for the exclusive benefit of his spouse within the meaning contained in the Income Tax Act (“ITA”) and provided for a trust to be created for a child of the deceased taxpayer (“Child Trust”) to hold the residue of the ...

DEEMED DISPOSITION OF A TRUST INTEREST

Friday, April 10th, 2015

The Canada Revenue Agency (“CRA") recently released a technical interpretation on the cost of assets transferred from a trust, which the deceased taxpayer was beneficiary of, to the taxpayer’s estate. In many cases, when a beneficiary of a trust dies, his or her interest in the trust ends. In the ...

DECEASED RRSP TRANSFER TO SPOUSE: ESTATE TAX NOT AVOIDED ON A TECHNICALITY

Tuesday, March 24th, 2015

A couple of years ago, a fellow blogger wrote about the tax reporting and liability technicalities surrounding the transfer of RRSP’s on death to a spouse. As he wrote, the general rule is that upon death, the annuitant is deemed to have received the fair market value of the assets in ...