All About Estates

Tag: Trusts

Total 62 Posts

Estate Planning, Trusts, and Family Law

Inter vivos trusts are often used in the estate planning process to manage and preserve family wealth across generations. Within that broad framework, such trusts are used for a variety of reasons. Parents or grandparents may want to establish a vehicle for funding the education costs of future generations. A…

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The Life of Pipeline Transactions: The Beat Goes On

In the past few years, many associated with this blog have written about the benefit of post-mortem pipeline transactions to avoid double tax on disposition of certain assets. Again, and briefly, a pipeline transaction is a form of transaction whereby the assets of a corporation are distributed to shareholders utilizing…

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FAMILY TRUSTS AND ALLOCATIONS OF PROCEEDS FROM SALE

Recently, I encountered a scenario where the trustees of a family trust were planning an allocation of proceeds from a share sale transaction to the beneficiaries of trust using the lifetime capital gains exemption but it appeared that the allocated amounts would physically end up in the hands of other…

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SPOUSAL TRUSTS : COUPLE OF UPDATES

Life insurance policy – rollover at cost? In a recent technical interpretation, the Canada Revenue Agency (“CRA”) confirmed that where a spousal trust is required to pay the life insurance premiums on a policy it owns and is the beneficiary of the policy, a rollover at cost pursuant to the…

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When is a Gift not a Gift?

Styres v. Martin 2018 ONCA 956 is a case of a gift that unfolded a saga (not over yet and far from it) of diminished capacity, alleged breach of trust, breach of fiduciary duty, unjust enrichment, undue influence to name a few. Mr. Styres lived in a house he built…

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Supreme Court Blesses Henson Trusts

The Supreme Court of Canada has given its blessing to Henson Trusts (fully discretionary trusts set up to not impact the beneficiary’s social assistance benefits) in S.A. v. Metro Vancouver Housing Corp., 2019 SCC 4. I previously blogged about this case when it was before the Court of Appeal. The…

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Amendments to the CBCA: Implications for the Valuation of Interests in Trusts?

Amendments to Canada Business Corporations Act (“CBCA”), will come into force mid-2019 which will require each private CBCA corporation to maintain a register listing the actual individuals (i.e., physical persons with name, address and date of birth and tax jurisdiction) with significant control in fact over the corporation including individuals…

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Another Resolution for the New Year – Take Advantage of the Low Prescribed Rate

We have talked about 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 marketable securities, mutual funds,…

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Whose Land Is It Anyways? Friends of Toronto Public Cemeteries v. Mount Pleasant Group of Cemeteries

In a recent decision that pitted a Toronto citizens’ group against cemetery operators, Justice Dunphy found that the cemeteries were publically owned, required public oversight, and were operating beyond the terms of the trust that govern the cemeteries. In 1826, a group sought to buy land to create a non-denominational…

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Capital Gains Exemption Purification before a Share Sale: Be Careful about Timing

Assume a family trust (“Trust”) which has a December year end owns 100% of an operating company (“opco”). A separate corporation (“holdco”), owned by the founders of opco, is a corporate beneficiary of the Trust. Opco is up for sale. Opco has excess funds which may affect the Trust’s and…

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