All About Estates

Tag: Canada Revenue Agency

Total 196 Posts

FAMILY TRUSTS AND DISTRIBUTIONS OF CAPITAL GAINS

Capital gain splitting on the sale of business interests, owned by family trusts with several beneficiaries, continues to be a valuable tool for tax planning purposes, including the opportunity under certain circumstances to access the super capital gains exemption more than once in such a transaction. However, the beneficiaries of…

Continue Reading

Alter Ego and Joint Partner Trusts – Loss Utilization

Alter ego trusts (“AET”s)  and joint partner trusts (“JPT”s) have a deemed year end on the date of death of the last life interest beneficiary (the settlor for an AET and the last to die of the spouses for a JPT) resulting in the deemed disposition of certain property of…

Continue Reading

Look Out: The New Trust Reporting Rules Are Almost Here

As we head in to the Fall of 2020, we are quickly approaching the new trust reporting requirements. The new trust reporting rules come into effect with taxation years ending after Dec. 30, 2021. As a reminder to administrators, if a trust continues to be in place past Dec. 31,…

Continue Reading

CPP: TO DEFER OR NOT DEFER

For several years now, clients and contacts (with more frequency of late, and that’s no accident) have been asking me: “Hey Steve, I am turning 65 shortly, do I apply for CPP now or do I wait – what makes more sense financially” Based on analysis provided by experts in…

Continue Reading

The Charity Capacity Gap

Canada’s 85,896 registered charities have wide-ranging capacity, but these variations are often underappreciated.  Estate donors – and their professional advisors – often focus on cause and tax status, but ignore organizational health indicators like history, funding, staffing, and governance.  What should estate donors look for in a charity? Although all…

Continue Reading

SOME TAX TIPS IN THE COVID ERA

Our epidemiologists and public heath officers are warning us gently that the dreaded virus will be with us for awhile. Nevertheless, we are all hoping that our economy will recover soon (and to some extent our financial markets have), but it appears asset values in general may be depressed for…

Continue Reading

Extended tax payment deadlines and interest relief on tax debt

Further tax payment deadline extensions and interest relief on tax debt are on offer by the Canada Revenue Agency (CRA) during the COVID-19 pandemic. As announced on July 27, 2020, trusts now have until September 30, 2020, to pay income tax balances and instalments that would have otherwise been due…

Continue Reading

Foreign reporting and the foreign pension plan

The Canada Revenue Agency (CRA) was asked whether a Canadian-resident individual is required to file Form T1135 (Foreign Income Verification Statement) in respect of their interest in a US pension plan.  The foreign property reporting rules are in section 233.3 of the Income Tax Act (ITA). Generally, these rules require…

Continue Reading

BARE TRUSTS

A bare trust, also referred to as a naked trust, exists where a person, the trustee, is merely vested with the legal title to property and has no other duty to perform or responsibilities to carry out as trustee, in relation to the property vested in the trust. The sole…

Continue Reading

How to Provide for Your Island in Animal Crossing: New Horizons After Your Death: Part II

This is a three-part blog series that seeks to explore the manner in which one can conduct estate planning with respect to their copy of the popular 2020 Nintendo Switch video game Animal Crossing: New Horizons. Part I discussed the importance of this topic and described the applicability of a…

Continue Reading