Total 34 Posts
The Canada Revenue Agency (CRA) was asked if an estate that received property from an inter-vivos trust that is a life insurance policyholder would be a graduated rate estate (GRE) if the estate received property as beneficiary?
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Estate beneficiary of an inter-vivos trust Continue Reading »
Canada Revenue Agency, Estate Planning, InsuranceFrom time to time, we are asked about the tax consequences of transferring life insurance policies particularly in the context of some common (or not-so common) estate and trust planning scenarios involving transfers. As most people know, when a transfer of ownership of a life insurance policy occurs, the transferor reports a taxable gain, which is essentially the proceeds of disposal less the transferor’s’ adjusted cost basis (ACB) in the….
ESTATE PLANNING REFRESHER: TRANSFER OF LIFE INSURANCE Continue Reading »
Business Succession Planning, Canada Revenue Agency, Estate Administration, Estate Planning, Guardianship, Insurance, Spouse, Tax Issues, TrustsThe Canada Revenue Agency was recently asked if income or capital from a proposed spousal trust that was to be used to pay life insurance premiums on a spouse’s life would disqualify the trust from ever being a spousal trust eligible for rollover of property upon creation of the trust.
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Spousal trust and life insurance Continue Reading »
Canada Revenue Agency, Estate Administration, Estate Planning, Executors, Insurance, Spouse, TrusteeThe Ontario Accident Benefit schedule will be reduced as of June 1, 2016 and claimants who are older than 65 will be negatively impacted. ….
The Older Claimant Continue Reading »
Elder Care, In the News, InsuranceMy most recent blogs have explored the possible use of life insurance to completely eliminate the capital gain on death (assuming that sufficient insurance was in place) provided certain stop-loss rules do not apply. Not all was lost because, “grandfathered” agreements could prevent the application of the stop-loss rules.
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Grandfathered Agreements Continue Reading »
Canada Revenue Agency, Estate Planning, Executors, Insurance, Loans, Tax Issues, WillsWhen 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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Grandfathered insurance policies Continue Reading »
Business Succession Planning, Canada Revenue Agency, Estate Planning, Executors, Insurance, Liability, Small Business, Spouse, Succession Planning, Tax Issues