The Brown Bag Lunch on October 20, 2015, was filed with great discussion, interesting topics, and helpful advice.
Much of the discussion addressed amendments to the Income Tax Act regarding Graduated Rate Estates, with these amendments entering into force on January 1, 2016. Specifically, opinions were sought as to how to address spousal rollovers to avoid tax, based on the cooperation (or non-cooperation) of a surviving spouse.
In addition, an update was provided with respect to a Freedom of Information and Protection of Privacy Act request. Information was sought pertaining to the amended Estate Administration Tax Act, including the number of applications for a certificate of appointment, estate information returns, as well as audits. Updates regarding further discussions with the Minister of Finance will be provided at the BBL. Related to this, Barry Corbin's article titled Executors: Liars and Thieves, in the October issue of Money & Family Law, was discussed.
BBL'ers also indicated their recent positive experience with quick return times for their applications for a certificate of appointment (in Toronto). How to file estate information returns when an estate value is nil, was also discussed.
Related, discussions arose with respect to life insurance proceeds and whether these are deemed assets of an estate for probate purposes.
Given the tax implications with respect to executor compensation, participants discussed whether specific bequests should be included in Wills in lieu of compensation. Concerns with this approach arose, including the possibility of an executor renouncing as estate trustee while still remaining entitled to the bequest.
Lastly, BBL'ers discussed the fairly standard requirement in a Will that a beneficiary survive the testator by a certain period of time before being entitled to a gift. As this may affect delay in applying for probate, whether this requirement should be included, was entertained.
The final Brown Bag Lunches of 2015 are being held on November 17 and December 15. We look forward to everyone's attendance and participation!
About the Authors
Noah Weisberg, Hull & Hull LLP
Lisa Toner, Sorbara, Schumacher, McCann LLP