The Perils of Joint Ownership – “Don’t let the tax tail wag the dog”

Will Probate

We worry that on occasion some Canadians move assets into joint names with right of survivorship with their children to save taxes, and on death the consequences are not as intended. Picture this. Dad dies, Mom is alone, and is told to put her assets into joint names with a child (or children) to save “probate” fees. (Or, she’s divorcing, and gets the same advice). “It’s easier for your children to deal with on your death”, or “what if you become incapacitated, your child can still make decisions”, they say, these two being the usual recommendations as to why. It sounds reasonable, so Mom moves forward, often without a full review of her financial situation, or her plans for her estate. Is there anything wrong with this arrangement? Practically, maybe […]

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Federal Budget 2016

Budget 2016 Torn Paper Concept

Many have dubbed the recent budget that Justin Trudeau and the Liberal party announced as a “No Surprise Budget”, nevertheless it still contains some changes that you should be aware of: Personal Tax Rates 5% reduction in Federal Tax rate for income between $45,283 and $90,563 ($679 in savings) 4% increase in Federal Tax rate for income over $200,000 (from 29% to 33%) These changes had already been passed (Bill C2) in December 2015 but were highlighted again on Tuesday. Old Age Security (OAS) Eligibility Restoration of the age of eligibility for Old Age Security and Guaranteed Income Supplements (GIS) to 65 from 67. GIS for low income seniors has been increased by 10% or approximately $947 per annum. Corporate Class Mutual Funds Currently investors in Corporate Class Mutual Funds […]

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