All About Estates

Tag: Trusts

Total 86 Posts

The Secret Language of Estates, and Inflation

Estates clerks and lawyers “speak” their own language.  We use acronyms or initialisms[1] such as CAET, EIR, RCP, ARI, AET, GRE, POA and COLA.  We use abbreviations like Benys and T’ees, and we draw triangles.  The idea for this blog was born when reflecting on having to interpret a lawyer’s…

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Considerations When Trustees are Involved in Transactions

Approaching year end, you increasingly may be fielding calls from corporate lawyer peers who are closing transactions in which trusts are involved. For example, trusts may be direct vendors or sellers, or, perhaps HoldCos are the sellers, but one or more trusts own the shares of the HoldCos.  This blog…

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INSURANCE TRACKING SHARES

If a taxpayer owns shares of a corporation and passes away, he or she is deemed to have disposed of their shareholding at fair market value (“FMV”) unless a tax-free rollover is applied (e.g., rollover to a surviving spouse). The disposition of shares may cause a tax liability. In the…

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AMENDING TAX ELECTIONS AFTER THE FACT

The rollover provisions of the Income Tax Act, under subsection 85, permit a taxpayer to elect to transfer “eligible property” to a taxable Canadian corporation in exchange for consideration that includes at least one share of the corporation. “Eligible property” includes most capital property, Canadian or foreign resource property, eligible…

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Inheritance and Tax

There is renewed discussion on whether Canada will become another jurisdiction where specific gift or estate taxes will be imposed on inheritances. There is speculation that the discussion will lead to something concrete as early as next week’s Federal Budget. In the meantime, there are situations where inheritances can come…

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Use of Cottage By Children of Settlor of an Alter Ego/Joint Partner Trust

Both alter ego and joint partner trusts (the trust) allow a settlor to transfer capital assets into the trust on a tax-deferred basis if the following conditions are met: The trust is created after 1999. The settlor is at least 65 at the time of creation. In the case of…

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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…

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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,…

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Of Love, Resulting Trusts, Matrimonial Homes and Fenelon Falls

The gratuitous transfer of property from a parent to an adult, capable child may result in a resulting trust.

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Estate Planning for the Family Cottage

Much has been written in this blog space and many others on this topic. Several times a year (in some years more often than others), we are asked in our practice about to advise on succession or estate planning issues for the family cottage. I was recently alerted to a…

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