Estate Planning

Question 1

Basic clauses in a will

Answer 1

1. Identification of testator
2. revocation of former wills
3. appointment of excecutor
4. payment of debts and expenses
5. specific bequests
6. general distribution instructions

Question 2

Spousal trust

Answer 2

Can transfer assets at ACB by taking advantage of rollover provisions in the Income Tax Act

Question 3

Taxes at death

Answer 3

1. income tax due to the deemed disposition rules
2. provincial probate taxes
3. US estate tax on your US assets

Question 4

Final tax returns

Answer 4

In addition to final or terminal return:

1. rights or things -eg dividends declared but not received, CPP and OAS payments received after death, salary, vacation pay owed by employer
2. business or proprietor return
3. testamentary trust - for income from the trust from the end of the trust fiscal period to the date of death