One of the questions I often get asked by clients with blended families is “If I die first, can my spouse change her/his Will after my death?” The answer is “it depends.” Anyone is able to change their personal will, but many partners choose to create mirror wills and mutual wills to ensure their estates will be divided in the same way. If spouses have mirror wills, any spouse
RRSP Designation and Minor Beneficiaries
RRSP Taxation on Death According to the Income Tax Act, the owner of an RRSP is deemed to have disposed of his or her RRSP on his or her death. Therefore, the value of an RRSP is included in the terminal year income of the deceased person and is fully taxable unless it qualifies for certain limited deferral options. There are two basic deferral options. One deferral option is with
Why You Need a Will
There are many advantages to having a properly considered and prepared Will. Everyone’s family circumstances and considerations are different and, therefore, the reasons for having a Will differ from person to person and family to family. For some, the choice of an executor to administer the Will or a guardian to look after minor children is the main importance. For others, distribution of their assets between family members in the
Non-Resident Speculation Tax (NRST)
What is NRST? The NRST is a 15 per cent tax which applies to purchases of certain types of properties located within the Greater Golden Horseshoe by certain prescribed entities. This tax is in addition to the Land Transfer Tax which applies to all purchase transactions in Ontario and the Municipal Land Transfer Tax which applies to all purchase transaction in the City of Toronto. This tax applies to transactions
How to Know When it is Time to Incorporate a Business
For small- and medium-sized companies, the decision about whether or not to incorporate a business can be a difficult one. While incorporation has plenty of financial and legal advantages, it can also bring up many complex and, at times, costly issues. As the Globe and Mail reports, for businesses that are growing, the benefits of incorporation will likely eventually outweigh the drawbacks. However, to know when that point comes it
Estate Problems with Gifts and Loans to Children
Gifts of money or property from parents to children often become sources of confusion, resentment and litigation upon the parents’ death. These problems could be limited if the parents and the children properly documented their intentions at the time of making the gifts and during the preparation of Wills. In the absence of such specific agreements and direct instructions the estate executors will have to rely on various legal principals and
Changes are on the way for Ontario’s Business Laws
The Ontario government has appointed an advisory panel that will help reform the province’s business laws. Following a series of recommendations made by the Business Law Agenda Stakeholder Panel earlier this year, Ontario could soon see substantial reforms to its business laws, according to the website for the Government of Ontario. The government is creating a new advisory council that will be responsible for recommending changes to business law in