CRA further circumscribes trust 21-year planning strategies involving non-resident beneficiaries
Subsection 107(2) of the Income Tax Act[1] generally provides for a tax-deferred rollout of capital property held by the trustees of a Canadian-resident personal trust to their capital beneficiaries in satisfaction of their capital interests in the trust. This rollover...
Saskatchewan’s Court of Appeal confirms award of entire quarter-million dollar estate for teenage children under the Saskatchewan Dependants’ Relief Act
In Lutz Estate v Lutz, 2020 SKCA 14, the Court of Appeal for Saskatchewan confirmed that under certain circumstances, “reasonable provision” under the Saskatchewan Dependants’ Relief Act (“DRA”) may require the entire estate being used towards the support of dependant...
Executor releases: the parameters on what is possible
Introductory comments about executor releases Is it appropriate for an executor to ask beneficiaries to sign a release and indemnity prior to receiving a distribution from an estate? Although non-indemnified executors may face potential personal liability for their work as...
A recent example of the importance of proper will planning
In Ontario, if an individual dies without a valid will, their estate will pass in accordance with the laws of intestacy, which are set out in the Succession Law Reform Act, R.S.O. 1990, c. S.26 (the “SLRA”). This is, for...
International Comparative Legal Guide (ICLG) to Private Client Laws and Regulation 2020 – Canada
ICLG Private Client 2020
Wendi Crowe, Dwight Dee, Nathalie Marchand and Rahul Sharma of our Private Client Services Group authored the chapter covering Canadian law in the 2020 edition of the International Comparative Legal Guide to Private Client Laws and Regulation. The international guide...
Elimination of Estate Administration Tax on Estates under $50,000
Effective January 1, 2020, Ontario eliminated estate administration tax (also known as probate tax) on estates valued under $50,000. These changes, announced during the 2019 Ontario Budget, are intended to provide some relief from the onerous estate administration tax regime....
Finance to Recommend Extension of Principal Residence Exemption to Inter Vivos Disability Trusts
In a comfort letter issued September 4, 2019 by the Tax Policy Branch (the “Comfort Letter”), Finance Canada indicated that they are prepared to recommend to the Minister of Finance that the Income Tax Act[1] be amended to allow an...
Petrick (Trustee) v Petrick: Another Reminder to Be Careful with Joint Tenancies
A recent B.C. Supreme Court decision provides another cautionary tale about the use of joint tenancies as part of an estate plan. Family members often think holding assets in a joint tenancy will be an efficient way to devolve property...
Yared v. Karam : The Supreme Court of Canada rules that a Family Residence held in trust is included in Quebec’s Family Patrimony
The Supreme Court of Canada rendered a groundbreaking family law decision that will have an impact far beyond family law. The decision involved a residence purchased by a trust and whether the value of the residence should be included in...
Due Execution of Wills: The Ontario Case of Bayford v Boese
A deceased individual’s will can be challenged for a number of reasons after death. For example, a will may be challenged on the basis that it was not executed in accordance with the relevant provisions of the Succession Law Reform...
