When it comes to ensuring a loved one with a disability is taken care of, few things are more important than a well-considered plan. And yet, for many, it can often seem as if few things are more difficult than planning for a disabled family member. Often the difficulty arises from a confusion regarding the options that are available and a general lack of available information regarding these options. Our Advisory Estate Planning to Benefit Family Members with Special Needs provides an overview of many available options to address a variety of concerns faced by individuals planning for a disabled loved one.
In both our August 2015 and March 2016 blog posts, we discussed the importance of frequently reviewing your estate planning documents, as personal and financial circumstances can constantly change. Failing to make necessary revisions to your estate planning documents may result in unintended consequences that do not accurately reflect your wishes, intentions and goals.
On July 18, 2017, the Federal Government announced changes to close "loopholes" in the taxation of private corporation income. One of the stated goals is to provide for "fairness" in the taxation of income so that business income earned through a private corporation is not "unfairly" subject to lesser rates of tax than other income. The purpose of this blog is not to discuss whether this should be a goal of our tax system. Change is a constant in all things, including tax policy, and a change in tax policy appears to be here, whether popular or not.
U.S. tax reform measures were signed into law by President Trump on December 22, 2017, culminating a whirlwind legislative process at the end of 2017 which resulted in the Tax Cuts and Jobs Act (the "Tax Act"), the most significant changes to U.S. tax law in over three decades. These changes, in particular those relating to personal taxation, will impact many individuals and families with U.S. connections.
When family wealth is at stake, parents may wish to encourage their children to enter into a domestic contract with their partners. The purpose may include to protect significant gifts and inheritances, a home owned at date of marriage, or a family business. With divorce rates at an all time high and the largest anticipated wealth transfer in Canada's history of approximately $750 billion to millennials over the next several decades, these issues are a growing concern for many families.
No doubt many U.S. legislators were chewing on tax reform over the U.S. Thanksgiving weekend, as well as enjoying their turkey, as unprecedented momentum is moving U.S reforms ahead at breakneck speed demonstrating Congress's desire to complete tax reform before year end.
One of the questions we often get asked by people who are planning their estates or for incapacity is who they should appoint to be the executors of their will or their substitute decision makers if they become incapable. (In Ontario, substitute decision makers during incapacity are known as attorneys for property or personal care if appointed by the individual in a power of attorney or guardians for property or personal care if appointed by the Court - see our Client Advisory Powers of Attorney for more information).
One of the increasing challenges facing parents and other family members today is achieving success in their estate planning - passing on their wealth well. But how should we define "success". From a professional viewpoint, much of estate planning focuses on ensuring a tax and cost-efficient transition of wealth to future generations and primarily focuses on financial aspects. But in doing so, have we lost sight of the forest for the trees? What is the overarching purpose of passing on wealth? Is it just about the money?
In estate planning, a parent typically wishes to provide for their children and each child's family. However, this desire to benefit the child's family often has a caveat: the child's spouse should not receive any part of the inheritance in the event of separation or divorce.
In April 2017, the CBC reported that over 1,300 people in Canada have died with medical assistance since the Criminal Code was amended in 2016 to legalize medical assistance in dying ("MAID"). While this statistic points to the importance of MAID for many Canadians, the new legislation has not settled the ongoing debate concerning the right to die. Recent litigation on various fronts has highlighted continuing controversies, including questions about the role of medical professionals in MAID, limitations on who will have access to medically assisted dying, and ambiguity in the criteria for access.