Estate Administration

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Settlement Payments Determinable After Death

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The Canada Revenue Agency (CRA) was asked whether certain settlement payments are taxable in the hands of the deceased taxpayer where a taxpayer dies prior to obtaining a determinable right to the payments. A class action lawsuit was brought forth on behalf of former members of the Canadian Forces.  A 2013 Court Order outlined the terms of the settlement of the class action lawsuit, with the exception of one outstanding….

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Canada Revenue Agency, Estate Administration, Executors, Tax Issues

Estate Donations = Faster Distributions

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[caption id="attachment_4590" align="alignright" width="761"] Faster Distributions of Estate Donations[/caption] Matt Johnston, my tax colleague at Scotiatrust, says the 12-month tax filing deadline is upon us. The initial round of major distributions to charities will occur in January 2017 under the “estate donation” rules introduced in 2016. As mentioned in my previous blog, executors and their advisors are discovering that new rules create new procedures. And the new procedures may lead….

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Estate Administration, Estate Donations, Philanthropy/Charitable Giving

RRIF rollovers and grandchildren.

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Can RRIF proceeds paid after death to a testamentary trust, and used to purchase an annuity for the deceased’s grandson, qualify for a tax deferred rollover? The Canada Revenue Agency (“CRA”) was recently asked to rule on the following set of circumstances and facts. The grandson’s parents were incapable of caring for him and he was placed in the annuitant’s custody. He lived with the annuitant and she provided financially for all his needs. The….

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Canada Revenue Agency, Dependant Support, Estate Administration, Estate Planning, In the News, Investments, Resulting Trust, Tax Issues, Trustee, Trusts, Wills

The Estate Donation Loop

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It is one year after the new estate donation rules were introduced and the practical implementations are beginning to emerge. With the post-2016 rules, a twist arises when the residue of the estate is split between charity and individual beneficiaries. This scenario creates a gift that keeps giving. A gift by will, which is a type of estate donation, is now a gift of the estate. Legally the gift occurs….

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Estate Administration, Estate Donations, Estate Planning

When is a Settlement Considered Binding and Enforceable?

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In the recent decision of Prince v Nytschyk Estate, 2016 ONSC 7459, the Ontario Superior Court of Justice enforced a settlement despite the lack of signed minutes of settlement at the time of death of one of the parties. In this case, Cherie Lewicki (“Cherie”) and Joseph Nytschyk (“Joseph”) were in a common-law relationship for about 15 years, during which time they lived together in a house in Joseph’s name alone. Joseph died intestate (without a Will) in 2013 and Cherie continued to live in the house until her death in 2015. Before her death, Cherie commenced a claim for dependent’s relief against Joseph’s estate. As part of her claim, Cherie sought a declaration that the house was held in trust for her based on a resulting or constructive trust. With the estate’s potentially significant exposure to a dependant’s support claim, the parties agreed to a settlement whereby the house would be transferred to Cherie. However, prior to the completion of any signed minutes of settlement, Cherie unexpectedly died…..

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Contracts, Estate Administration, Estate Litigation, Wills

Taxable Income of an Estate: Can it be Distributed?

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Suppose a straightforward will with very simple instructions to the executor: The executor is to pay the debts and expenses of the deceased, execute certain specific bequests of property and with some general instructions, distribute the residue of the estate to the named beneficiaries. During the administration of an estate, taxable income is generated during the course of paying all the debts and executing the specific bequests. Because it might….

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