Trusts

Total 221 Posts

A family trust and its beneficiaries – think twice before including your niece or nephew

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Discretionary family trusts used to be a staple in most private company corporate structures. The income splitting benefits were obvious, and professionals were more than happy to implement a family trust in almost any corporate structure. The popularity of using family trusts eventually led to complacency from some professionals in understanding the detailed tax rules that applied to implementing those trusts. In the earlier years of drafting trust documents, professionals….

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Canada Revenue Agency, Tax Issues, Trusts

Bare trusts – we have to do what now?

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On February 4, 2022, exactly 1,438 days after the original draft legislation was introduced in the 2018 Federal Budget, the Department of Finance (Finance) released revised draft legislation[1] for beneficial ownership reporting for trusts. This revised draft legislation contained two significant changes: Effective date was changed to taxation years that end after December 30, 2022; and Bare trusts[2] and arrangements are now specifically included Given that the original draft legislation….

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Trusts

Proving Charitable Purposes

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Charitable purpose trusts are given special status in the law. While most other types of trusts must have a clear end date, charitable purpose trusts may live forever. All other types of trusts have to have specific and defined beneficiaries, yet charitable purpose trusts may exist in order to further a “charitable purpose.” While courts are generous in determining whether the purpose of a trust is charitable, there are clear….

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Charitable Giving, Estate Administration, Estate Donations, Estate Planning, Fiduciary Professions, Philanthropy/Charitable Giving, Trusts

Valuation for Estate Planning – Some Hard Lessons

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In a recent case in Tax Court, Lauria v HMQ 2021 TCC 66, the taxpayers, both officers and directors of a company held shares in the company as a result of employee share option agreements granted to them.  In early 2006, the company founders decided to pursue an initial public offering (“IPO”) of the company and hired an underwriter for that purpose. Apparently upon the advice of the company’s chief….

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Canada Revenue Agency, Courts, Estate Planning, Investments, Limitation periods, Tax Issues, Trusts, valuation

OAS Planning

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The Old Age Security (“OAS”) pension is a monthly payment you can get if you are 65 years of age or older. In many cases, Service Canada will automatically enroll you in the year prior to your 65th birthday. To the occasional surprise of some folks, the receipt of OAS is subject to a claw back if “adjusted” income exceeds a certain threshold ( approximately $78,800 for 2021 income year)….

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Canada Revenue Agency, Estate Planning, Investments, Loans, Tax Issues, Trusts, Uncategorized
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