Estate and Trust Taxation

Estates

Two certainties in life — death and taxes — come together when a taxpayer dies. The estate's legal representative or executor is responsible for administering the deceased's assets and liabilities according to the terms of the will. Ensuring that proper tax returns are filed according to the law is also a responsibility of the legal representative. VWEG has the experience in preparing all the necessary returns and forms for both the deseased taxpayer and the on-going estate and in advising on taxation matters for executors, notaries and lawyers.

Trusts

Under the Income Tax Act of Canada, several forms of trusts are deemed to exist in law. VWEG can advise you on establishment of trusts and assist with the on-going maintenance and filing requirements.

Examples of trusts are:

• Family trusts (useful for distributing income to family members 18 years of age and over and splitting ownership of assets)
• Spousal trusts that can be used to hold assets and provide benefits to your spouse during his or her lifetime
• Alter-ego and Joint Partner trusts used for taxpayers 65 or over to reduce probate feesPersonal trusts used to:
  — Hold assets for yourself, disabled relatives or others
  — Hold shares of corporations for others in order to split income while allowing owners to retain full control

As part of our planning services, we can advise when the use of a trust might be suitable and refer you to professionals experienced in setting up trusts.