Canada Revenue Agency | All About Estates

Clawback of Old Age Security

Derek de Gannes • April 17, 2018 • 0 Comments

The Canada Revenue Agency (CRA) was reminded by a taxpayer recipient of the Old Age Security pension (OAS) about a perceived lack of fairness when required to include the dividends received at a grossed-up amount when calculating net income rather than only including the actual amount of dividends received. The taxpayer felt this was unfair because their net income was used to calculate the reduction his or her OAS. In….

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Gift of securities by executors of a will

Derek de Gannes • April 3, 2018 • 1 Comment

The Canada Revenue Agency provided its views regarding the income tax implications of a gift made by executors of an estate of a deceased individual. The taxpayer died in 2016. His Will named his three sons as equal beneficiaries and co-executors, with no designation of amounts to be given to charitable organizations but giving the co-executors the flexibility to make donations if they wish. His assets at the time of….

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Canada Revenue Agency, Charitable Giving, Estate Planning, Executors, Tax Issues, Trustee, Uncategorized, Wills

RRSP’s and Early Withdrawals.

Steven Frye • March 27, 2018 • 3 Comments

Registered retirement savings plans (RRSP’s), introduced in 1965 by the way, are a great vehicle for retirement savings and a keystone found in most retirement and estate plans. It is one of the few ways to earn an income-tax reduction in your earning years (the amount you contribute is tax deductible). Income tax is paid on RRSP money when it is withdrawn, when you are likely in a lower-tax bracket…..

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Canada Revenue Agency, Estate Planning, In the News, Investments

To vary or not to vary

Derek de Gannes • March 6, 2018 • 0 Comments

The Canada Revenue Agency recently responded to a ruling request as to whether or not a proposed amendment to a trust agreement could be so significant to cause a resettlement of the trust, or a disposition of a beneficiary’s interest in the trust Before the enactment of variation of trusts legislation, trustees were generally bound to administer the trust according to its terms. Unless specifically allowed in the trust deed,….

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Canada Revenue Agency, Executors, Tax Issues, Trustee, Trusts

What to do when a loved one dies?

Steven Frye • February 20, 2018 • 1 Comment

Believe it or not, this is the title of a recent release from the Canada Revenue Agency (“CRA”). Is there really a softer side to the CRA? Let’s face there is a lot to do after a loved one dies, and a lot of it not related to tax. But from experience, it does not take long for the subject to come up, which reminds me of the time I….

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Canada Revenue Agency, Estate Administration, Executors, In the News, Tax Issues

Death and TOSI Part 2: Spouses

Darren Lund • February 16, 2018 • 0 Comments

My past two blogs have looked at the December 13, 2017 draft legislation that amends and expands the tax on split income (“TOSI”) rules. In my last blog I outlined some of the special rules that apply (in the context of TOSI) to income and gains on property that is acquired as a consequence of death. A further special rule relates specifically to spouses. If an amount qualifies as an….

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Canada Revenue Agency, Estate Planning, Family Conflict, Tax Issues