This article was written by Stephen Rukavina. Stephen is an Associate in the Tax and Corporate and Commercial Groups in the Vancouver Office of Miller Thomson. His practice focuses on tax planning and taxpayer representation. He also practices general corporate and commercial law.
In recent years, the high Canadian dollar and the fall in United States housing prices has encouraged Canadians to buy US vacation properties. However, Canadians should be aware of the tax consequences of owning a US vacation home before making a purchase. One of the most important considerations is potential exposure to US estate tax.
Tagged ERAssure, executor, Greg Hertzberger, insurance, Liability, Miller Thomson LLP, Stephen Rukavina, tax, US estate tax, USA, vacation home
Written by: Derek de Gannes, CW Partners
Just about everything tax-related comes with a deadline. Miss the deadline and more often than not there will be a penalty and perhaps some interest. The remainder of the blog will address the filing deadline of a trust which is wound up and its remaining assets distributed to the beneficiary.
Generally speaking, a return of income for a trust or estate must be filed within 90 days from the end of the tax year. The tax year of an individual, which includes a trust, is defined as being a calendar year. (more…)
Passing the Cottage to the Next Generation: Originally printed in Lawyers Weekly, November 30, 2012.
The family cottage is often the source of years of happy memories: children with sand between their toes; campfires; boating and large family gatherings. Because clients and their children can be emotionally tied to a family cottage, options for transferring it to the next generation should be thoughtfully considered.
Communication is Key
This may be an opportune time for a family meeting. A frank discussion may confirm who is interested in acquiring the property, how much control the clients want to maintain over it, who can afford it, whether insurance should be purchased to offset costs, and how to arrange ongoing maintenance. You may advise that your clients’ children and spouses sign a contract excluding the cottage from any family law claims. A timely, open family discussion might be the best way to allow for proper planning and to avoid unpleasant conflict. (more…)
Tagged Communication, cottage, CRA, ERAssure, Estate Debate, executor insurance, Fair, Family Tragedy, Family Treasure, Next Generation, probate, tax planning for cottage, testamentary trust
A current article on a newly proposed ‘fiduciary duty’ for advisers could hardly be more timely given the recent press release to the financial community of the introduction of the ERAssure white paper on estate and executor liability insurance.
The article focuses on a paper recently released by the Canadian Securities Administrators (CSA) that includes a proposal to create a legal ‘fiduciary duty’ of care for investment advisers or dealers. It summarizes that the fiduciary duty would raise the bar to the same level as lawyers and doctors, requiring advisers to put client interests first.
I read a great article this week in The Lawyer’s Weekly. Good food for thought.
This is an interesting commentary on a new social dynamic – separation and divorce among people in their 60’s, 70’s and 80’s – and it has some interesting aspects for executors that handle estates for these people.
Will you be leaving any of your estate to a charity?
There is an often-overlooked tax-planning opportunity that could help your heirs save a significant amount after you’re gone. (more…)
The introduction of Bill 173 in Ontario is bound to change the course of estate administration.