Private company shares and life insurance
It is not unusual to see a corporate beneficiary of a life insurance policy collect the insurance on the death of the insured shareholder. Depending on the circumstances, there are creative ways to use...
View ArticleGrandfathered insurance policies
When 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...
View ArticleGrandfathered Agreements
My 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...
View ArticleEstate tax return due on a weekend or public holiday date?
What happens when the estate return due date is on a weekend or public holiday?
View ArticleWARM AIR IS NOT A MEDICAL SERVICE
A recent decision from the Federal Court of Appeal contains sad news for snowbirds and those who struggle with long, Canadian Winters. In Canada v. Tallon, the Federal Court of Appeal was tasked with...
View ArticleRRSP transfers after death
The Canada Revenue Agency (CRA) recently weighed in on the eligibility for a tax-free transfer of registered retirement savings plan (RRSP) to a beneficiary after the death of the annuitant.
View ArticleCRA Collections: Dealing With Some of the Myths
As a trustee or executor of an estate, you may find yourself managing existing or future tax disputes with the Canada Revenue Agency (“CRA”) and the collections department of the CRA at the same time....
View ArticleInfant Beneficiary of a Family Trust and the Capital Gains Exemption
Pursuant to the Income Tax Act, to be eligible for the capital gains exemption, the qualified small business corporation share definition includes a requirement that it be held by the taxpayer, or a...
View ArticlePrincipal residence and co-ownership (continued)
In my last blog on this topic I shared with you the comments of the Canada Revenue Agency (CRA) on an implied agreement between a couple regarding their ownership of a property. The CRA went on to...
View ArticleGraduated Rate Estates: Does the 36 month rule mean a maximum of 3 taxation...
As my fellow bloggers have written, there are now 3 types of testamentary trusts under our tax law: a Graduated Rate Estate (“GRE”), a Qualified Disability Trust (“QDT”) and all other testamentary...
View ArticleMore on Graduated Rate Estates
At a recent conference of the Society of Trust and Estate Practitioners, the Canada Revenue Agency (“CRA”) was asked to respond to certain questions regarding Graduated Rate Estates (GRE’s), in...
View ArticleESTATE 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...
View ArticlePrincipal Residence – Duplex or Intergenerational House
The Canada Revenue Agency (CRA) was asked if a duplex occupied by a taxpayer and her aging parent could be treated as the daughter's taxpayer "principal residence" for the purpose of claiming the...
View ArticleINCOME FROM A U.S. TRUST: CAN IT EVER BE TREATED AS DIVIDEND INCOME?
Sometime ago, a relative of a Canadian taxpayer died in the US and she left her money in a charitable trust, with some of the income bequeathed to the Canadian taxpayer annually. The trust income is...
View ArticlePrincipal residence exemption – renting to a child
The Canada Revenue Agency (CRA) was asked if a taxpayer's property designated as his "principal residence" but rented and lived in by his son continued to qualify as his "principal residence" for the...
View ArticleSHARES ISSUED FOR NOMIMAL CONSIDERATION: BE WARY OF VALUATION
Recently, the Canada Revenue Agency (“CRA”) was asked to comment on the tax consequences that may result from implementing an estate planning or income splitting arrangement which involves the issuance...
View ArticleHappy Independence Day !
This year's STEP conference featured over 65 speakers including for the very first time, the IRS spoke on Canadian soil about offshore compliance options including OVDP and streamlined compliance...
View ArticlePost Mortem Pipeline Planning – Good Things Come to Those Who Wait
The Canada Revenue Agency (CRA) recently ruled in respect of a post-mortem "pipeline" transaction involving a private corporation whereby the children of that last-to-die parent received valuable...
View ArticlePRINCIPAL RESIDENCE EXEMPTION AND BENEFICIAL OWNERSHIP – AN UPDATE
We know that if a property qualifies as a principal residence, an exemption can be claimed to reduce or eliminate any capital gain otherwise realized on the disposition of the property. Under the...
View ArticleIncome allocated by a US trust
The Canada Revenue Agency (CRA) was asked whether income allocated by a US trust to a resident of Canada retains its nature as a dividend.
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