Death of a Taxpayer, 12th Edition

Format: Print Book
Product ID: 10096977-0001
Death of a Taxpayer offers a comprehensive review of the relevant income tax implications that occur at death and offers guidance to help minimize the tax burden on the estate of the deceased taxpayer

Key tool for lawyers, accountants, financial planners, executors, trustees and other professional advisors

Death of a Taxpayer offers a comprehensive review of the relevant income tax implications that occur at death. Fully updated to reflect the latest budgetary pronouncements, legislative changes, new case law, CRA administrative positions, this exclusive edition provides guidance to help minimize the tax burden on the estate of the deceased taxpayer.

Designed as an all-in-one resource for tax professionals, it contains detailed information on the intricacies of estate planning and income tax compliance, with expert commentary you can trust to address even the most complex tax issues that can arise at death. It is a key tool for lawyers, accountants, financial planners, executors, trustees and other professional advisors.

Topics include:

  • The tax treatment on death of income from rights and things, periodic payments, refund of premiums from RRSPs, etc.
  • The tax treatment of capital property at death
  • Rollovers to spouses, common law partners and qualifying trusts
  • Special issues regarding partnerships and farm property
  • Taxation of estates and testamentary trusts
  • Obtaining a clearance certificate
  • Distributions to beneficiaries
  • U.S. estate tax and tax issues affecting non-residents

What's New in this Edition

  • Changes to the law relating to joint tenancy arising from the Pecore decision and subsequent case law
  • The introduction of the new concept of a "graduated rate estate" (GRE)
    • The many currently-existing benefits that are now only available to GREs
    • Certain new benefits such as more flexible charitable donation planning that also apply only to GREs
    • How to ensure that an estate qualifies and continues to qualify
  • The removal of certain benefits from both new and pre-existing testamentary trusts
  • Discussion of new case law on the residence of a trust or estate
  • New rules restricting a trust including an estate's ability to elect to be taxed on amounts distributed to beneficiaries
  • Enhanced discussion of the provisions dealing with spousal trusts specifically the potential to "taint" a spousal trust
  • Discussion of the new rules from October of 2016 regarding the use of a taxpayer's principal residence exemption
  • Updates to the discussion on US Estate taxation
  • Discussion of the significant change in the rules surrounding the flexibility to claim charitable donations between the deceased and their estate

About the Authors

Suzanne I.R. Hanson, BA, LLB, has been practicing in the area of tax and estate planning for more than 35 years, and is tax counsel with the law firm of Fogler, Rubinoff LLP. She has written numerous articles on taxation matters for theCanadian Tax Journal, the Canadian Tax Foundation Conference Proceedings and Tax Management International Journal. She has also lectured extensively at professional conferences and courses, including those sponsored by the Canadian Tax Foundation and by CCH Canadian Limited. Ms. Hanson is a past Governor and member of the Executive Committee of the Canadian Tax Foundation.

Shaun M. Doody practices law as a member of the Tax and Estates Department of Fogler, Rubinoff LLP. Shaun's practice focuses on corporate and personal tax and estate planning for owner/mangers, entrepreneurs, trusts and high-net-worth individuals and addresses a broad range of services including estate freezes, voluntary disclosures, succession planning, wills, trusts, and butterfly reorganizations. He is a regular contributor to the Fogler, Rubinoff LLP tax newsletter Dollars and Sense and produces an annual webcast for CCH Canadian Limited dealing with estate planning and taxation on death.

Pam Prior, CPA, CA, TEP is a Partner with KPMG in Vancouver, B.C. and has been a tax practitioner for over 25 years. She focuses on advising privately held businesses and their shareholders on a wide variety of issues including corporate, personal, trust and estate planning and compliance. She also assists charities with their tax issues including structuring tax-efficient donations. She has written articles, papers and lectured for various organizations including the Canadian Tax Foundation, the Chartered Professional Accountants of Canada and B.C., and the Society of Trust and Estate Practitioners. She is a member of the STEP Inside Editorial Committee and a past President of the Fraser Valley Estate Planning Council.

Table of Contents


Chapter 1: Introduction

  • Tax Planning at Death
  • Intestacy
  • Will Planning
  • Will Planning and the Ontario Family Law Act
  • Property Passing Outside the Will
  • Estate Administration

Chapter 2: Computation of Income and Taxes Payable

  • Filing of Returns
  • Liability of Personal Representative
  • Clearance Certificates
  • Elections to File Separate Returns
  • Periodic Payments
  • Rights or Things
  • Income from a Business
  • Income from a Trust
  • Reserves in the Year of Death
  • Pension Income Splitting Election
  • Registered Retirement Savings Plans
  • Registered Retirement Income Funds
  • Registered Disability Savings Plan
  • Home Buyers' Plan
  • Lifelong Learning Plan
  • Employee Profit Sharing Plans
  • Deferred Profit Sharing Plans
  • Registered Pension Plans
  • The Capital Gains Exemption
  • Other Deductions
  • Personal Tax Credits
  • Tax Credits: Separate Returns
  • Medical Expense Tax Credit
  • Charitable Donations Tax Credit
  • Alternative Minimum Tax
  • Payment of Tax

Chapter 3: Taxation of Property Held at Death

  • Capital Property
  • Depreciable Capital Property
  • Shareholdings and Death
  • Eligible Capital Property
  • Canadian and Foreign Resource Properties
  • Land Inventory
  • Principal Residence
  • Tax-Free Savings Account
  • Eligible Funeral Arrangements
  • Alter Ego Trusts
  • Registered Education Savings Plan

Chapter 4: Executors, Administrators and Trusts

  • General
  • Testamentary Trust
  • Residence of an Estate or Trusts
  • Filing Tax Returns for a Trust
  • Fiscal Period of the Estate and the Executor's Year
  • Income Recognition by Beneficiaries
  • Computation of Income of an Estate
  • The 21-Year Deemed Realization Rule
  • Interest on Inheritance Taxes
  • Dispositions of Property by a Legal Representative
  • Taxation of Distributions and Allocations to a Beneficiary
  • The Estate or Trust as a Conduit

Chapter 5: Spouses, Common-Law Partners and Qualifying Trust

  • Capital Properties
  • Reserves
  • Land Inventory
  • Resource Properties
  • Principal Residence
  • Death Benefits

Chapter 6: Some Income Tax Aspects of the Ontario Family Law Act

  • Framework of the Ontario Family Law Act
  • Estate Considerations
  • Filing Income Tax Returns
  • Qualifying Spouse Trust
  • Equalization Using a Trust
  • Tax as FLA Debt or Liability
  • Post-Mortem Tax Planning
  • Clearance Certificates
  • Registered Retirement Savings Plans

Chapter 7: The Taxation of Partnerships

  • Introduction
  • Disposition of Partnership Interest on Death
  • Other Issues

Chapter 8: Farmers and Farm Property

  • Introduction
  • Farm Property Rollovers
  • Cash Method of Computing Income
  • Basic Herds Livestock Inventory
  • Net Income Stabilization Account (NISA)
  • Hobby Farmers
  • Miscellaneous Items

Appendix 1

  • Canadian Taxation and the Non-Resident

Appendix 2

  • United States Estate Tax

Appendix 3

  • Checklist of Filing Requirements

Appendix 4

  • Checklist of Useful Information

Appendix 5

  • Relevant Interpretation Bulletins
  • Information Circulars Covering Death, Deferred Plans and Estates
  • Tax Rulings
  • Advance Tax Rulings (Second Series)
  • Technical News
  • Guides
More Information
Contributors Wolters Kluwer Tax Law Editors
Format Print Book
Library Tax
Subject Area Death & Taxpayer