All About Estates

Category: Tax Issues

Total 208 Posts

Low- Interest Environment: Time To Take Advantage Again.

In past blogs, we discussed income splitting arrangements available to individuals who wish to loan funds to his/her lower income spouse or adult child, or in the case of minor children, a discretionary family trust. Such loans would be used to invest in income producing properties such as marketable securities,…

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Home Buyer’s Plan and Disabled Family Member

In a recent blog, I wrote about the availability of Home Buyer’s Plan (HBP) to an individual after the death of her spouse who purchased the matrimonial home. In a recent Technical Interpretation (2019-0819671E5, D. Odubella), the Canada Revenue Agency (CRA) was asked by a taxpayer to review the availability…

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Time to Refreeze: Redux

The freezing of current share value so that your chosen successors can easily participate in the future growth of your enterprise is a common estate planning technique. What if the value of the frozen shares now exceeds the value of the enterprise as a whole? I wrote about this sometime…

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Clearance Certificates

An executor, as the legal representative of the estate, is required to obtain a clearance certificate before distributing property that they control. Where the executor fails to obtain a clearance certificate, they are liable for any unpaid amounts in respect of any property distributed. Some will argue that not every…

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HOME BUYER’S PLAN AND TAX CREDITS AFTER THE DEATH OF A SPOUSE

During her marriage, a spouse inhabited a home wholly owned by her husband. He passed away and the house became an asset of the estate. Subsequent to her husband’s passing, the spouse purchased a new property. She had not re-married or entered into any common law partnership. Is the spouse…

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TOSI and the estate planning – pension splitting

The pension splitting exception will allow a spouse who is 65 years of age to split income with his or her spouse or common law partner if the split income would be an excluded amount of the spouse who is 65 years old. These deeming provisions provide an opportunity to…

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Death of a Non-Resident

Today’s blog was written by guest blogger, Kathryn Walker, Associate at Fasken LLP. If you are considering retirement and old age in a warmer climate, keep in mind that in escaping the cold you will not necessarily escape Canadian taxes on death since Canadian non-residents remain subject to Canadian income…

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Costs and the Estate’s Losses

Some losses suffered by the estate due to litigation cannot be recovered.

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Death of a Beneficiary – Alter Ego and Joint Spousal Trusts

At a recent tax conference, the Canada Revenue Agency (CRA) shared its view on reporting a post-mortem loss incurred by a trust in the first year following the death of the last life interest beneficiary (the settlor in the case of an alter ego trust, and the last to die…

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Comfort Letter Provides Hope for Non-resident Beneficiaries of Graduated Rate Estates

A recently released letter from the Department of Finance to the Joint Committee on Taxation recommends changes to enacted tax rules that would provide relief from Canadian withholding tax on estate distributions to non-resident beneficiaries of a graduated rate estate. Budget 2018 included a widened surplus stripping rule applicable to…

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