All About Estates

Tag: estate trustee

Total 37 Posts

TRUST REPORTING: NEW REQUIREMENTS COMING SOON!

Under the current rules, a trust only needs to file an annual tax return but generally does not need to file the return if it does not earn an income or make any distributions in the year. (Notwithstanding that the Canada Revenue Agency has increased its demand for “nil returns”…

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Court Set Asides a Release and Orders a Passing of Accounts

An estate trustee may decide to forego passing their accounts because of the associated costs and seek a release from the estate’s beneficiaries instead. However, when the capacity of a beneficiary is in question, a  release may be set aside. In Foisey v. Green, the Public Guardian and Trustee (“PGT”)…

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Medical assistance in dying

The Canada Revenue Agency (CRA) was asked whether medical assistance in dying would be considered a medical service for the purpose of the medical expense tax credit (METC).  Not surprising, their answer was yes. In their view, the services for medical assistance in dying are medical services for the purpose…

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Estate and Trusts with Foreign Properties and/or Transactions: Update on Reporting Implications

Sometime ago, I wrote that the Income Tax Act requires persons and partnerships to file information returns in respect of foreign property ownership (specified foreign property in excess $100,000) and transactions with non-residents . This extends to trusts and estates. Those who file such a return late or do not…

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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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Estate Trustee Awarded Costs for Unnecessary Passing of Accounts

In a recent court decision, Pochopsky Estate, the court found the Deceased’s four children (the “Beneficiaries”) jointly and severally liable for the estate trustee’s costs related to an application compelling him to pass his accounts.  The Beneficiaries had obtained an order compelling the estate trustee to account. The court ultimately…

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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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RRIF rollovers and grandchildren.

Can RRIF proceeds paid after death to a testamentary trust, and used to purchase an annuity for the deceased’s grandson, qualify for a tax deferred rollover? The Canada Revenue Agency (“CRA”) was recently asked to rule on the following set of circumstances and facts. The grandson’s parents were incapable of caring for him and he…

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Taxable Income of an Estate: Can it be Distributed?

Suppose a straightforward will with very simple instructions to the executor: The executor is to pay the debts and expenses of the deceased, execute certain specific bequests of property and with some general instructions, distribute the residue of the estate to the named beneficiaries. During the administration of an estate,…

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The Case of the $30,000 Scrapbooks

In what the judge referred to as a “noble gesture”, the deceased ordered that his two scrapbooks setting out his life story be copied and distributed to his family. These instructions were set out in a Codicil to his Will. However, disagreement amongst family members regarding the copying of the…

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