June 2016

INCOME FROM A U.S. TRUST: CAN IT EVER BE TREATED AS DIVIDEND INCOME?

•

Sometime ago, a relative of a Canadian taxpayer died in the US and she left her money in a charitable trust, with some of the income bequeathed to the Canadian taxpayer annually. The trust income is derived mostly from US dividends. With a series of proposed adjustments to her personal tax returns, the taxpayer asked the Canada Revenue agency (“CRA”) why this income could not be treated as dividend income….

INCOME FROM A U.S. TRUST: CAN IT EVER BE TREATED AS DIVIDEND INCOME? Continue Reading »

Canada Revenue Agency, Canadian and US Tax Treaty, Estate Administration, Estate Planning, Interest, Investments, Tax Issues, Trusts, United States, US Taxes

QUALIFYING SPOUSAL TRUSTS – A CAUTION REGARDING PAYMENT OF LIFE INSURANCE PREMIUMS

•

On death you might say that Canada is a tax haven. Unlike our neighbours south of the 49th parallel, we are not subject to an estate or inheritance tax on death. We are, however, subject to an income tax which while still a tax, is generally less than an estate or inheritance tax…..

QUALIFYING SPOUSAL TRUSTS – A CAUTION REGARDING PAYMENT OF LIFE INSURANCE PREMIUMS Continue Reading »

Estate Planning

‘Baby boomers under 75 set to inherit $750 B in next decade’- CIBC

•

I have a friend who inherited 1 million dollars from a distant uncle. Sounds like a healthy inter generational wealth transfer occurred. She has no children. She does not worry about whether she will be leaving an inheritance. Instead, she enjoyed a trip around the world and is keeping money aside for her golden years……..

‘Baby boomers under 75 set to inherit $750 B in next decade’- CIBC Continue Reading »

Charitable Giving, Elder Care, Estate Administration, Family Conflict, Philanthropy/Charitable Giving

Motion to Approve Settlement – A Fine Balance

•

Rule 7.08 of the Rules of Civil Procedure states that no settlement of a claim involving a person under disability is binding on that person unless the settlement is approved by a judge. Why court approval of settlements is necessary is succinctly summarized in Wu Estate v Zurich Insurance Co.: “The purpose of court approval is plainly to protect the party under disability and to ensure that his or her legal rights….

Motion to Approve Settlement – A Fine Balance Continue Reading »

Estate Litigation

Principal Residence – Duplex or Intergenerational House

•

The Canada Revenue Agency (CRA) was asked if a duplex occupied by a taxpayer and her aging parent could be treated as the daughter’s taxpayer “principal residence” for the purpose of claiming the principal residence exemption from the capital realized on the sale of the duplex at a later date.
….

Principal Residence – Duplex or Intergenerational House Continue Reading »

Canada Revenue Agency, Dependant Support, Disability, Elder Care, Estate Planning, Joint Tenancy, Property, Real Estate, Tax Issues
Scroll to Top