Family Law Relationships Flashcards
What is joint tenancy?
Two or more individuals hold single title to a property
-rollover to other at death
What is tenancy in common?
- separate title
- passes to estate at death
What property is subject to division?
-assets acquired during the relationship and family assets(owned by spouses)
What is excluded from family property?
- gift or inheritance
- damages for personal injuries
- life insurance proceeds
- property agreed to in domestic contract
Who are the parties to a trust?
- settlor
- trustee
- beneficiary
What is beneficial ownership in a trust?
Person who owns property and transfers to trust.
If ownership changes, there’s a disposition (unless rollover applies)
How is income treated in a trust?
- either allocate it to beneficiaries or trust pays tax
- T3 is issued
How does a rollover apply to a trust?
Same as if there were no trust
- spouse or common law as beneficiary
- if any other beneficiaries are added to the trust then the rollover would no longer apply
At what rate is a trust taxed?
Top marginal rate
What is the GRE?
When taxpayer does, the Estate is considered a trust
- graduated rates like an individual
- 36 month window to use GRE
What is a qualified disability trust?
Testamentary trust that is created for the benefit of a disabled beneficiary
-the upside is that it is taxed at the GRE annually vs top MTRs
What is an alter ego trust?
When settlor and beneficiary are same person
- used to protect assets
- bypasses 21 year rule if settlor is over 65
What is a spousal trust or common law partner trust?
Designed to benefit the spouse
Settlor must be 65 or older
Spouse can be the only beneficiary
What is a joint spousal trust or joint partner trust?
Combines both alter ego and spousal trust
- settlor and spouse are both beneficiaries
They can be the only beneficiaries
Must be 65 and older
What constitutes marital breakdown?
1 year of separation
Adultery
Cruelty
