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Friday, February 7, 2014

Estate taxes? Not here

Estate taxation is always a troublesome area for those planning their wills. However, don't be intimidated by estate taxation; hearing the basic rules boiled down into bite-size pieces can really help. I've come across an article by BC lawyer Richard Weiland that gives the basic rules of taxation on estates. He talks about the fact that Canada does not have estate taxes, but does have probate fees that in some provinces are referred to as estate taxes. Click here to read the article.

The site that carries the article is called www.financial-articles.ca. This is a collection of articles by Canadian experts in the areas of credit and debt, insurance, investments, law and legal, and taxation. The articles are curated; in other words they are not posted by the authors of the articles, but are chosen by the site administrator. It's a great resource for Canadians, so why not bookmark it?

Two of my articles have been included in their collection so far, and I hope a few more will soon be there.

5 comments:

  1. I just want to add that if someone wants to post an article on this site s/he can do so to (the article has to be approved first)

    ReplyDelete
    Replies
    1. Hi Frugal. You're right. The site allows you to sign up as a member and submit your articles. They approve the ones they find reliable and well-written. I've read several articles on the site and there is a lot of good info there.

      Lynne

      Delete
  2. Let me visit website and read that article.

    ReplyDelete
  3. Lynne, both of my parents passed away in 2011. I was named executor in my dad's will (he died last) & asked a major Canadian bank (not BNS) to take over this duty which was done through the proper channels. An interim distribution was made in Nov. 2011. Now the 3 beneficiaries are being told by the bank to repay $5,000 to the estate to pay CRA penalties for my parents failing to file back tax returns. Are we obligated to return this money to the estate? They have had the file since 2011 and made a distribution before being sure that CRA was not owed money. Are the beneficiaries responsible for their oversight?

    ReplyDelete
    Replies
    1. I assume that you did not renounce as executor, but that you hired the trust company to act as your agent. The fact that there has been an error like this puts you in a bad position. I do not believe that the beneficiaries are obligated to return the funds, but you might hope that they do. It is the executor who is responsible for unpaid taxes when the estate is prematurely paid out, and you are the executor.

      You have the final say in all decisions and as far as CRA and the law are concerned, you are the one who will face the music.

      Having said that, I understand that when a trust company or lawyer is helping with the estate, the executor leans heavily on their advice. So, in reality, I think if the beneficiaries do not return the funds (and why would they?) you should try to get the trust company to cough it up. It was their mistake, from what you've said. They might decide to cover it simply from a customer satisfaction perspective.

      But understand that this tax debt is ultimately yours.

      Lynne

      Delete

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