Estate Planning

A recent judgment from the Ontario Superior Court of Justice (Moore v Getahun, 2014 ONSC 237) has opined on the long-time practice whereby experts submit a draft report to counsel for review.  The court referenced Rule 53.03 of the Rules of Civil Procedure, which is designed to ensure that the expert’s first duty is to the court. No matter who retained the expert, he/she must be objective and not take….

The recent Ontario Superior Court case of Moody v Hirsh explores the issue of when a plaintiff is able to trace the money he or she paid to a defendant into the defendant’s own property. The decision demonstrates that the circumstances in which a court will make an order imposing a constructive trust over the defendant’s property before the resolution of the claim are limited. The trustees of the Moody….

The Canada Revenue Agency recently wrote about a whether a late-filed election to retain the principal residence status will be accepted. When the use of a property that is a principal residence is changed from being owner-occupied to a rental property the CRA considers the owner to have sold and reacquired the property. This action may trigger a taxable event which may be covered by the principal residence exemption. More….

The Stratford Festival has included ‘King Lear’ among this year’s performances.  ‘Lear’, of course, is the poster boy for older adults who use poor judgment in determining how and when to distribute their assets to their children.  The opening of King Lear reveals the King’s intent to divest his kingdom to his three daughters. Similar to many older adults, he “wishes unburdened to crawl toward death”.  However, he adds a….

Many estate plans include a transfer of property (e.g. shares of a privately held corporation) to a company and freeze the value (or price) of the transferred property to the current owners at the transfer date. To avoid some punitive provisions in the Income Tax Act associated with non-arm’s length transfers, transfer agreements often include a price adjustment clause (“PAC”) which provides for a retroactive adjustment to the transfer value….