All About Estates

Category: Liability

Total 31 Posts

TRANSFER OF PROPERTY FROM PERSONAL TRUST TO BENEFICIARY

Recently, the Canada Revenue Agency (“CRA”) was asked to comment on a scenario involving a transfer of real estate from a Personal Trust to a beneficiary where the beneficiary also assumed a mortgage on a property. In past interpretations, the CRA noted that the transfer of assets from the Trust…

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Leap Year and the Tax Filing Deadline

With 2016 being a leap year there is an extra day in February which means there is further action required for those responsible for filing trust income tax and information returns.

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RESIDENCY OF A TRUST – A QUESTION OF MANAGEMENT AND CONTROL II: A View from the CRA Bridge!

Last fall I wrote about the Supreme Court of Newfoundland and Labrador being asked to rule on the specific issue of residency which would have significant tax implications to the trust depending on the Court’s determination. In Discovery Trust vs Canada (National Revenue), 201201G6615, at issue was whether a trust…

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Grandfathered insurance policies

When the stop-loss rules were enacted, they contained grandfathering provisions that provided relief on dispositions of shares pursuant to “grandfathered agreements” or related to “grandfathered insurance policies.”

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Private company shares and life insurance

It is not unusual to see a corporate beneficiary of a life insurance policy collect the insurance on the death of the insured shareholder. Depending on the circumstances, there are creative ways to use the insurance to benefit such persons as the deceased’s estate or other shareholders of the company.

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TIME FOR A REFREEZE?

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?

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Tax liability of the deceased

On occasion, the deceased’s estate may not have the cash to cover the tax liability because the assets of the estate are not “liquid” – perhaps valuable real estate. There is a way to defer the payment which requires action on or before the balance due date.

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Tax Liability of a Deceased Taxpayer

A recent Canada Revenue Technical Interpretation confirmed that the tax owed by an estate should first be recovered from the named beneficiaries of the deceased registered plans.

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TAX REPORTING OBLIGATIONS FOR TRUSTEE AND EXECUTOR FEES – FOLLOW UP

Awhile ago , I wrote that payments made to trustees and executors usually trigger some form of tax reporting and often, an obligation on the payer to withhold and remit amounts on account of tax. Thanks to some welcome and practical feedback from a concerned blogger, I would like to add a few comments.

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Tax Reporting Obligations for Trustee and Executor Fees

In general, the payment of amounts for services rendered triggers some form of tax reporting and often, an obligation on the payer to withhold and remit amounts on account of tax. Payments made to trustees and executors are no different.

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