Trusts

Total 213 Posts

ESTATE PLANNING REFRESHER: TRANSFER OF LIFE INSURANCE

•

From 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, Trusts

Provincial residency of a Trust

•

The Canada Revenue Agency (CRA) was asked if there was any change to their view regarding the application of the central management and control (CMC) test in establishing the residency of a trust for provincial income tax purposes in light of the decisions in Discovery Trust v. Canada and Boettger C. Agence du revenu du Québec.
….

Provincial residency of a Trust Continue Reading »

Canada Revenue Agency, Estate Administration, Estate Litigation, Estate Planning, Executors, Tax Issues, Trusts

RESP’s – A couple more wrinkles on EAP’s and AIP’s

•

In a recent blog, I wrote that the Canada Revenue Agency (“CRA”) was asked whether the six month extension for making educational assistance payments (“EAPs”) out of a registered education savings plan (“RESP”) under the appropriate subsection of the Income Tax Act (the “Act”) can apply when the beneficiary under the plan is deceased and the answer was no because according to the CRA “any payment “to or for an….

RESP’s – A couple more wrinkles on EAP’s and AIP’s Continue Reading »

Canada Revenue Agency, Estate Administration, Estate Planning, In the News, Investments, Property, RESP, Tax Issues, Trusts

TRANSFER OF PROPERTY FROM PERSONAL TRUST TO BENEFICIARY

•

Recently, the Canada Revenue Agency (“CRA”) was asked to comment on a scenario involving a transfer of real estate from a Personal Trust to a beneficiary where the beneficiary also assumed a mortgage on a property. In past interpretations, the CRA noted that the transfer of assets from the Trust at cost may be restricted where a portion of the property is received in settlement of a debt due from….

TRANSFER OF PROPERTY FROM PERSONAL TRUST TO BENEFICIARY Continue Reading »

Canada Revenue Agency, Estate Administration, Estate Administration and Probate Applications, Estate Planning, Investments, Liability, Property, Real Estate, Tax Issues, Trustee, Trusts

CAPITAL DIVIDENDS FROM A TRUST TO NON-RESIDENTS – TAX ISSUES

•

Subject to the relevant sections of the Income Tax Act, a Canadian private corporation has a special corporate tax account known as a capital dividend account (“CDA”) which gives shareholders designated capital dividends, tax free. The CDA of a corporation may include the non-taxable portion of the company’s capital gains, proceeds of life insurance policies on death and capital dividends received from other companies. While a capital dividend is normally….

CAPITAL DIVIDENDS FROM A TRUST TO NON-RESIDENTS – TAX ISSUES Continue Reading »

Canada Revenue Agency, Canadian and US Tax Treaty, Estate Administration, Estate Administration and Probate Applications, Estate Planning, Executors, Investments, Property, Small Business, Tax Issues, Trustee, Trusts, U.S. Citizen, United States

INCOME FROM TRUST – WHEN PAYABLE IS NOT PAID

•

Fellow bloggers and I have written in the past about how income from a Trust is not deemed payable to a beneficiary (pursuant to relevant sections of the Income tax Act) unless it has been paid to the beneficiary or the beneficiary has the legal right to demand payment during the year. Recently, the Canada Revenue Agency (“CRA”) was asked to review a hypothetical situation related to this issue which….

INCOME FROM TRUST – WHEN PAYABLE IS NOT PAID Continue Reading »

Canada Revenue Agency, Estate Administration, Estate Administration and Probate Applications, Estate Planning, Executors, Tax Issues, Trustee, Trusts
Scroll to Top