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Changes to the Income Tax Treatment of Estates

January 13, 2016 | 12.00 PM - 1.30 PM


The Institute of Law Clerks of Ontario is excited about offering our Lunch and Learn,Changes to Income Tax Treatment of Estates Law Program. The program will be held on January 13, 2016 from 12:00 pm to 1:30 pm at ILCO's Education Centre.

Presented by Jim Sweetlove LLP

Estates pre 2016

  • Income Tax treatment of testamentary trusts as compared to inter vivos trusts
  • Taxation rates
  • Year end
  • Use of multiple testamentary trusts

Estates post 2015 (the new Income Tax Treatment)

  • Graduated Rate Estates – a new concept
  • One Graduated Rate Estate per estate
  • 36 month time period
  • Non-graduated Rate Estates
  • Year end
  • Tax installments
  • Qualified Disability Trust

Donations in a Will

  • Use of the charitable tax credit by the estate
  • Value of the donation
  • Applicable to Graduated Rate Estates only

Problems created by the changes

  • Effect on existing testamentary trusts
  • Allocation of capital gains on the death of the life tenant
  • Effective allocation of donation receipts