Estate Planning

Question 1

Advantages of transferring investment property to joint tenancy ownership

Answer 1

• will not go through estate and have to pay probate
• automatically transfer to surviving joint tenants, no delays or disputes in Will
• can split income related to property; if adult children, not attribution rules apply

Question 2

Disadvantages of transferring investment property to joint tenancy ownership

Answer 2

• marital breakdown claim to asset
• if business owner- creditor has access to property
• lose full control of asset

Question 3

Advantage of transferring asset into trust

Answer 3

• retain control if settlor of trust is also the donor
• bypass estate and no probate taxes
• private
• can’t contest it like a Will
• protect against creditors
• protect against marital breakdown asset claims

Question 4

Disadvantages of Trusts

Answer 4

• can be expensive to maintain and set up

- subject to 21 year rule if trust is to exist past this length of time

Question 5

Deferred community of property regime

Answer 5

Spouses are free to own whatever they want and do not need permission to sell it from the other spouse. Upon divorce the assets will become part of the community property to be divided.

Question 6

Capital losses before the year of death can be applied when and to what?

Answer 6

it can apply to any of the previous year’s income or the year of death’s income

Question 7

CCA claims during year of death

Answer 7

None can be claimed if the asset is not owned on Dec 31st of the year of death

Question 8

US In situs assets include

Answer 8

condo, vehicle, artwork, investments (regardless of where held)
Not bank account unless its for business or trade