Canada Revenue Agency | All About Estates

Multiple testamentary trusts for tax purposes: Are they always treated as one?

Steven Frye • February 14, 2017 • 0 Comments

This issue was recently tested in Court with a “bittersweet” result. Three testamentary trusts were created for 3 children in the late 2000’s. Their mother was an income beneficiary in each trust, and entitled to receive all the net income derived from each trust during her lifetime. A child and his/her children were income and capital beneficiaries of each respective trust and would be paid the net income after their….

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Canada Revenue Agency, Estate Administration, Investments, Property, Resulting Trust, Tax Issues, Trusts, Uncategorized

GAAR and 21-year rule planning

Derek de Gannes • February 7, 2017 • 0 Comments

The Canada Revenue Agency (CRA) was asked to comment on the implications of a transfer of property from a discretionary trust (Old Trust) to a Canadian corporation wholly owned by a new discretionary trust (New Trust). The 21-year deemed disposition rule provides that every 21 years in a family trust’s life, the CRA looks at the property in a trust as if it were the property of someone who had….

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Canada Revenue Agency, Estate Planning, Executors, Trusts

TAX FREE ROLLOVER “WRINKLES”

Steven Frye • January 31, 2017 • 0 Comments

Some recent technical interpretations from the Canada Revenue Agency (“CRA”) remind us that tax free rollover of retirement plans have to be carefully planned and executed to get the desired result. Here are a couple of cases in point: Rollover of a Registered Pension Plan (“RPP”) to an infirm dependent child In a recent technical interpretation, CRA concluded that where a RPP lump sum death benefit is paid from the….

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Canada Revenue Agency, Dependant Support, Estate Administration, Investments, Tax Issues

Settlement Payments Determinable After Death

Derek de Gannes • January 24, 2017 • 0 Comments

The Canada Revenue Agency (CRA) was asked whether certain settlement payments are taxable in the hands of the deceased taxpayer where a taxpayer dies prior to obtaining a determinable right to the payments. A class action lawsuit was brought forth on behalf of former members of the Canadian Forces. A 2013 Court Order outlined the terms of the settlement of the class action lawsuit, with the exception of one outstanding….

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Canada Revenue Agency, Estate Administration, Executors, Tax Issues

RRIF rollovers and grandchildren.

Steven Frye • January 17, 2017 • 0 Comments

Can RRIF proceeds paid after death to a testamentary trust, and used to purchase an annuity for the deceased’s grandson, qualify for a tax deferred rollover? The Canada Revenue Agency (“CRA”) was recently asked to rule on the following set of circumstances and facts. The grandson’s parents were incapable of caring for him and he was placed in the annuitant’s custody. He lived with the annuitant and she provided financially for all his needs. The….

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Canada Revenue Agency, Dependant Support, Estate Administration, Estate Planning, In the News, Investments, Resulting Trust, Tax Issues, Trustee, Trusts, Wills

CPP Death Benefit

Derek de Gannes • January 10, 2017

Whether a CPP/QPP death benefit is to be taxed in the hands of the beneficiary or in the hands of the estate is determined by the terms of the will.
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Canada Revenue Agency, Executors, Tax Issues, Wills