On death you might say that Canada is a tax haven. Unlike our neighbours south of the 49th parallel, we are not subject to an estate or inheritance tax on death. We are, however, subject to an income tax which while still a tax, is generally less than an estate or inheritance tax…..
I have a friend who inherited 1 million dollars from a distant uncle. Sounds like a healthy inter generational wealth transfer occurred. She has no children. She does not worry about whether she will be leaving an inheritance. Instead, she enjoyed a trip around the world and is keeping money aside for her golden years……..
‘Baby boomers under 75 set to inherit $750 B in next decade’- CIBC Continue Reading »
Charitable Giving, Elder Care, Estate Administration, Family Conflict, Philanthropy/Charitable GivingRule 7.08 of the Rules of Civil Procedure states that no settlement of a claim involving a person under disability is binding on that person unless the settlement is approved by a judge. Why court approval of settlements is necessary is succinctly summarized in Wu Estate v Zurich Insurance Co.: “The purpose of court approval is plainly to protect the party under disability and to ensure that his or her legal rights….
Motion to Approve Settlement – A Fine Balance Continue Reading »
Estate LitigationThe 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 principal residence exemption from the capital realized on the sale of the duplex at a later date.
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Principal Residence – Duplex or Intergenerational House Continue Reading »
Canada Revenue Agency, Dependant Support, Disability, Elder Care, Estate Planning, Joint Tenancy, Property, Real Estate, Tax IssuesAlthough the title of this blog is largely tongue-in- cheek, there is some validity to exploring how trusts can be used to incentivise or encourage the next generation to be successful or at the very least contributing to society in a positive way…..
Incenting From Beyond the Grave!! Continue Reading »
Estate Planning, Family Conflict, Succession Planning, Trusts, WillsWith an aging population comes the importance of attendant care of the elderly and disabled. The Canada Revenue Agency (CRA) was recently asked about the taxation of amounts received for attendant care services provided to a spouse or child and returned with a pleasantly surprising answer. A child received a non-taxable award of damages to facilitate the continuous care of the child. A monthly amount was paid out of the….
Attendant care payments Continue Reading »
Elder Law, Home-Right