Many Canadians consider a living trust when creating their estate plans. More commonly known as inter vivos trusts, the trusts can be effective in reducing estate administration fees, avoiding complex estate settlements and ensuring confidentiality on death of its settlor. In some cases, these benefits can extend to a principal residence transferred to the trust. This article discusses the availability of the principal residence exemption on sale of a home by a trust, and where the exemption is not available, the taxation of accrued gains both at the time of sale and at death.Read more »
Given the income-sensitive nature of the Old Age Security program (OAS), financial advisors are always looking for ways to reduce the bite of the OAS clawback. This article discusses the clawback and options for reducing impact.Read more »
Fall is the time of year when many Canadians fall prey to excess contributions to registered plans. Sometimes the excess (or overcontribution) is the result of pre-arranged periodic payments. Other times, windfall payments (eg. bonuses) directed to registered plans are the cause. Regardless, overcontributions to RRSPs and TFSAs can lead to overcontribution penalties, so advisors and investors should be mindful of the rules. This article focuses on excess contributions to TFSAs and discusses options for dealing with excess TFSA amounts.Read more »
In response to market volatility, some investors are considering tax-loss selling strategies to reduce tax payable on capital gains. When considering these strategies, investors should remember two common pitfalls of tax-loss selling: i) the “superficial loss” rule and ii) a denied loss rule that applies when property is transferred directly to a registered plan. This article discusses in-kind transfers to registered plans and things to be mindful of when planning for the use of capital losses.Read more »
Retirement planning has been a BIG conversation in Canada in recent years – and for GOOD reason. The baby boomers are transitioning to retirement, and with that comes a lot to consider when dealing with the management of cash flow and the preservation of income-sensitive benefits. This short webcast discusses one part of the retirement income conversation, Old Age Security, and specifically, the preservation of this income-sensitive benefit.