All About Estates

Category: Business Succession Planning

Total 45 Posts

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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Pipeline planning and the dangers of subsection 84(2)

In 1789, Benjamin Franklin, one of the founding fathers of the United States Constitution, provided the world with this great quote, “nothing is certain except death and taxes”. In 2021, John Oakey, the founding father of three Oakey children, is providing the world (or at least anyone reading this blog)…

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Resuming Life in Long Term Care (or least trying)

As of July 7, 2021, Step 2  of the ‘Roadmap to Reopen’, restrictions on visitors to our Long Term Care settings have been opened up. In terms of vaccination requirements, the Ministry have required staff to either: Proof of vaccination Provide a documented medical reason for not being vaccinated Participate…

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The Finance Strikes Back

As the story of Bill C-208 (intergenerational transfers) continues to evolve, I can’t help but make analogies to my favorite childhood trilogy.  The Star Wars trilogy was a dominating force in my childhood.  I lived and breathed the interesting stories produced by this vast universe created by George Lucas. In…

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Bill C-208 the race to the finish line

Bill C-208 (Bill), “an Act to amend the Income Tax Act (transfer of small business or family farm or fishing corporation)” is a private member’s bill introduced by Conservative MP, Larry Maguire[1] on February 19, 2020.  The purpose of this Bill is to allow share capital restructurings and inter-generational transfers within…

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Bequeathing qualifying shares: to trust or not to trust

Use of spousal trust or common-law partner trusts Setting up a spousal or common-law partner trust is a very important decision that generally results from non-tax reasons. One of the common reasons for setting up this type of trust is to protect the surviving spouse from influencers who might try…

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Estate Planning Lessons from “The Dutch House”

The Dutch House, by Ann Patchett, is an excellent read. However, for those in the estate planning profession, it is also a reflection on what goes wrong when insufficient or no estate planning occurs.

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POST MORTEM PLANNING: AGAIN MORE GOOD NEWS

CRA will allow post-mortem pipeline transactions to continue, which will allow individuals to avoid double tax on disposition of certain assets.

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Estate planning and TOSI – Part II

In my previous blog, Estate planning and TOSI Part I, I introduced the concept of the tax on split income (TOSI) continuity rules which are extremely important when estate planning.  The objective of the continuity rules is to afford the beneficiary, who would not have an excluded amount of their…

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Estate planning and TOSI – Part I

Finance stated that the purpose of the revised tax on split income (TOSI) regime, which became effective January 1, 2018 was “to limit the ability of owners of private corporations to lower their personal income taxes by sprinkling their income to family members who do not really contribute to the business.”[1] The objectives related…

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