Beneficiary Designations at Risk
A recent Ontario court decision could upend estate planning. This article will briefly review the common law principles governing the gratuitous transfers of property, the Supreme Court of Canada (“SCC”) decision in Pecore v. Pecore, 2 and how this decision has been applied in Calmusky and other recent court decisions to override transfers pursuant to beneficiary designations. This article will also discuss steps that can be taken to ensure that a beneficiary designation in favour of adult children (and other adult beneficiaries) will be respected by the Courts.
Couple has no home, kids together but still considered spouses, Ontario’s top court rules
TORONTO — A wealthy businessman will have to pay more than $50,000 a month in spousal support for 10 years to a woman with whom he had a long-term romantic relationship even though they kept separate homes and had no children together, Ontario’s top court has ruled. Under Ontario law, an unmarried couple are considered common-law
Estate Freeze and Refreeze in an Economic Downturn
By Carey Lee, CPA, CA, Business owners typically consider tax planning at a time when their businesses are flourishing and their wealth is increasing. However, the COVID-19 pandemic — and the ensuing economic downturn — may also provide planning opportunities that can improve their tax situation. Let’s discuss how business owners may achieve tax savings in the long run by implementing an estate freeze or a refreeze during an economic downturn, as well as the insurance opportunities they present.
The Valuation of Corporate-owned Life Insurance on the Death of a Shareholder
By Glenn Stephens, LLP, TEP, FEA, The valuation of life insurance policies for the purposes of Canadian tax law is subject to a confusing set of rules and interpretations. In some instances, specific provisions in the Income Tax Act (the Act) apply, and in others, more general provisions may or may not apply. Regardless, these rules are subject to the interpretation of the Canada Revenue Agency (CRA), whose pronouncements can be inconsistent and difficult to reconcile.
Driven to Distraction
By Carol Neuss Thanks to a clampdown on drunk driving, more use of seatbelts, and cars equipped with airbags and the technology to help avoid accidents, the number of deaths due to motor vehicle accidents has decreased over the past few decades. However, the risks of mortality and morbidity related to drunk driving are still essential risk factors to assess when underwriting insurance applicants.
Hidden health-care costs can be a shock for retirees
Every Thursday, Randy Filinski drives a group of seniors to one of two government-sponsored physiotherapy sessions in Toronto’s Scarborough area and sees firsthand the realities of inadequate health-care coverage in the retirement years. Mr. Filinski, volunteer chair of CARP’s Ajax-Pickering chapter east of Toronto, says the members he drives are eligible only for a 20-minute
Three Areas Where You Can Save Money
I believe that, just like people, our money needs a purpose. Sometimes it’s obvious what that purpose is: saving, covering the cost of housing, food, bills etc. but often, once those recurring payments are taken care of, the remaining dollars tend to magically vaporize from our bank account and drift off to find their own
What The Liberals’ Tax Promises May Mean For Your TFSA
Just moments after being sworn in as our new Prime Minister, Justin Trudeau and his cabinet announced that Parliament will reconvene on December 3 and immediately turn their attention to taxes. While the priority focus will be on marginal tax rates for the middle class and those making more than $200,000, it’s worth paying attention
Are you playing rational roulette with your retirement plans?
We all know that our mental abilities will wane at some point, though we like to think it won’t be until extreme old age. Is it possible that those abilities diminish sooner and faster than we think, even in the absence of dementia? If we look around us, we can find objective benchmarks that suggest
The joy of retirement readiness
I’ve been facilitating courses and seminars on Retirement Readiness for long enough that I have been a part of hundreds of people’s retirement planning process. Some have come back to see me after they retired. Others have sent a message and some people I have run into them socially. The feedback I have gotten is very