All About Estates

Month: February 2016

Total 17 Posts

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…

Continue Reading

Survival Skills: Testamentary Style

A couple of months ago I discussed the purpose of the “30 day survivorship clause” in Wills.  In a nutshell, the clause is designed to address the problems that may arise in the situation where the testator and one or more beneficiaries die in a common accident or otherwise within a short…

Continue Reading

CRA Commentary on 74.4(2) Planning and Dividend Payments

The CRA recently published a severed letter in which it considered the applicability of subsection 74.4(2) to two scenarios involving the payment of dividends from a small business corporation to a holding company, for the benefit of “designated persons”. Generally, subsection 74.4(2) applies to a transfer or loan of property made, directly or indirectly, by an individual to a corporation that is not a small business corporation, if it is reasonable to consider that one of the main purposes of the transfer is to reduce the individual’s income and benefit, directly or indirectly, someone who qualifies as a “designated person” in respect of the individual (e.g. a minor child or spouse).

Continue Reading