W2 Flashcards

1
Q

What is joint WRS?

A

x

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2
Q

What is tenants in common (TIC)?

A

z

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3
Q

Two possible uses of trusts are:

A

Protecting assets for your kids future if they are disabled or in case they have common law couples.

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4
Q

One strategy of m.l is:

A

Setting a corp in Panama, paying invoices (fake) to people in C, going to casinos, changing to chips, using some, waiting some days, redeeming and sending it back.

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5
Q

Do Canada asks for disclosure about the owners when a foreign corp. opens a corp. in the country?

A

No.

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6
Q

What am I, of CPP?

A

Beneficiary.

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7
Q

What contingency figures should you have?

A

Beneficiary, Executors, Trustees.

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8
Q

What if all your contingency people refuse?

A

It would go to the residual because the trust can’t be setup.

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9
Q

Is there a limit for contingents?

A

No.

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10
Q

What happens if there are no beneficiaries?

A

The trust gets cancelled.

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11
Q

What happens if the purpose of the trust does not exist anymore?

A

The trust gets cancelled.

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12
Q

In a trust, who owns the assets?

A

The Trustee owns the assets beneficially for the beneficiary.

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13
Q

Any dwelling place normally inhabited by a family is also known as:

A

Matrimonial Property (or home).

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14
Q

What does beneficial ownership refers to?

A

The entitlement to all the “Fruits” of the property.

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15
Q

Is it possible to sell a house if it is in name of only one spouse ?

A

No, it needs the other spouse’s written permission.

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16
Q

What is the primary difference between Tenancy in common and Joint tenancy with right of survivorship (joint tenancy)?

A

The disposition of the property at the time of a co-owner’s death.

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17
Q

What happens en TIC when a tenant dies?

A

In TIC the deceased’s interest in the property does not automatically pass to the survivor tenant(s) but is transferred to the heirs of the deceased tenant.

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18
Q

What happens in joint tenancy when a tenant dies?

A

The property automatically passes to the surviving co-tenant(s) under the right of survivorship.

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19
Q

Which is the default to ownership for concurrent owners of a piece of property if there is no formal agreement or arrangement?

A

Tenants in common (TIC).

20
Q

What is right of possession?

A

The owner’s right to have physical possession (or ability to take possession) or exclusive custody and control of the property.

21
Q

What is right of control?

A

Allows the owner to manage the use of the property in any means deemed legal within the jurisdictions IN WHICH THE PROPERTY EXISTS.

22
Q

What is right of exclusion?

A

Allows the property owner to limit who may or may not enter the property. (Exceptions for law enforcement community if they have a legal warrant).

23
Q

What is the right of enjoyment?

A

Permits the owner to participate in activities of his choice while on the property (must comply with municipal and provincial restrictions).

24
Q

What is the right of disposition?

A

It protects the owner’s right to transfer ownership (permanently or temporarily) without the consent of others. (may be restricted by contract, and other legal requirements like taxes).

25
Q

What is the right to protection of property?

A

The owner’s right to peaceful enjoyment of his property, and the principle that no one is to be deprived of his property except where it is in the public interest and subject to conditions provided for by law.

26
Q

Is the interest on the property of the co-tenants equal when there is TIC?

A

Not necessarily.

27
Q

In TIC, can one co-owner DIVIDE* or transfer his or her share without the permission of the other tenant?

A

Yes.

28
Q

In TIC, can one co-owner transfer his or her share without the permission of the other tenant?

A

Yes.

29
Q

Can a joint tenant server his interest in the property through his will?

A

No, as the property passes automatically to the surviving joint tenant(s).

30
Q

What happens if a joint tenant assigns his interest in the property to a third party?

A

This severs the joint tenancy such that the third party will hold his or her interest as a tenant in common, the remaining owner and new owner will hold their interests as tenants in common.

31
Q

What are the four unities required for a valid joint tenancy?

A

Unity of interest, unity of title, unity of possession and unity of time.

32
Q

What is unity of interest?

A

Each joint tenant must have an interest in the property.

33
Q

What is unity of title?

A

The interests of all joint tenants must originate from the same document. (registered in both their names originally).

34
Q

What is unity of possession?

A

Each joint tenant must have equal rights to the entire property. (equal access).

35
Q

What is unity of time?

A

The interests of all joint tenants must originate at the same time.

36
Q

One benefit of joint tenancy for couples is:

A

Being able to control the property without the need for probate (no delays in administration) and avoids probate and administration fees or taxes (reducing expenses).

37
Q

One benefit of joint tenancy for elderly parents is:

A

An elderly parent may not be able to get to the bank and/or deal with the day-to-day management of his or her home or an investment portfolio. Arranging for a trusted child to become a joint owner with the parent allows that child to manage the property on behalf of his or her parent, and ultimately benefit from that property when the parent dies.

38
Q

What is the typical litigation scenario regarding joint tenancy?

A

Typically, the litigants are the surviving joint owner (a spouse or a child of the deceased) who is claiming full entitlement to the property, and other family members who assert that the property should fall into the estate.

39
Q

What are the two legal presumptions governing gifts that courts normally apply when there is litigation over a gratuitous gift of a joint tenancy?

A

Presumption of advancement and presumption of resulting trust.

40
Q

What is presumption of advancement?

A

When this presumption applies, a court assumes that the original owner intended to make a gift of the transferred property. Unless the party challenging the gift can provide sufficient evidence to rebut this presumption, the court will find there was intent to make a gift to the spouse or minor child when the property transferred into joint tenancy.

41
Q

What is presumption of resulting trust?

A

Is an evidentiary assumption that the original owner intended to retain beneficial ownership in the property, and the new owner (or co-owner in the case of a joint tenancy) only has legal title to facilitate management of the property. Evidence that demonstrates it was the original owner’s intention to make a gift to the adult child can rebut this assumption.

42
Q

What do courts review to determine wether a presumption in a joint tenancy has been rebutted?

A

Communications between joint owners and family members, testimony of professional advisors who were consulted, other documents that shed light on the intention of the owner creating the joint tenancy, whether the owners equally shared the benefits and expenses.

43
Q

The process that the owner should follow when considering the transfer of property into joint tenancy is:

A

Determine intentions (gift or management), document intentions, communicate intentions to make a gift in writing to all family members, consider taxes of making a gift, consider the impact of making a gift of what is available in the estate (and if bequests to other family members should be adjusted).

44
Q

How is the transfer of property from sole to joint ownership treated?

A

As partial disposition of the property. (The owners returns the fraction of capital gains or losses that is giving away in the income tax return of the year of the transfer). (Exception for couples…)

45
Q

How is the transfer of property from sole to joint ownership treated in the case of spouses or common law partners?

A

It occurs on a rollover basis and any capital gains are deferred until the disposition of investments in the portfolio. In addition, since the transfer takes place for no consideration, the income attribution rules include future income and capital gains in the income of the transferor.*

46
Q

Are inheritances included in the value of assets acquired during marriage in Ontario?

A

No, Further, the income or gains on such property are ignored if expressly provided for in the gift.

47
Q

What happens if a province where the family law has no exemption for gifts?

A

The transfer of property into joint ownership increases the married child’s divisible property, subject to the potential application of the presumption of resulting trust in favour of the parent, Again, special considerations arise when the property the married child acquires is ultimately used to acquire the matrimonial home.