Final Returns on Death of a Taxpayer
Succession & Estate Planning
By: Walter Harder
PROGRAM: Tax Services Specialist, Succession and Estate Planning Specialist
Death is never timely yet it comes to at least 1% of the population each year. Advisors need to be able to help their clients minimize the income tax consequences before the event occurs. The advisor also requires technical expertise in filing the final return(s) of a deceased in order to ensure proper tax planning is arranged at time of death and for the ongoing planning activities of the survivors.
CONTENT DESCRIPTION AND KEY CONCEPTS:
This course deals comprehensively with the taxation of individuals at death. The student will gain a thorough understanding of how income as well as capital accumulations are taxed when the taxpayer dies as well as strategies to minimize those taxes. Students will start with learning what government cheques may be retained and which must be returned. They will learn how each type of income is taxed, on what returns the income is reported, and strategies to defer taxes where possible. They’ll learn how to claim all deductions and credits that are allowed on each return, as well as how to minimize probate fees on assets transferred to beneficiaries. True-to-life case studies involve preparation of 2015 tax returns for deceased taxpayers and their surviving spouses. All known tax changes, including those that will come into effect after 2016 are discussed in the Journal.
- Understand death as a financial event and discuss its ramifications with clients
- Spot potential income tax problems waiting in the wings for your client alongside the grim reaper
- Ask better questions and bring value to the client relationship by identifying possible solutions to those problems
- Identify and discuss creative tax strategies that take advantage of the opportunities presented by death, both in terms of personal and business finances
- Preparation of all possible T1 returns in the year of death.
- Identify opportunities for probate avoidance (applicable only in high probate jurisdictions)
KNOWLEDGE BUREAU TOOLS INCLUDED:
Knowledge Net Tools: Students also have access to student versions of income tax software: TaxCycle, Intuit Profile, DTMax in preparing the case studies and their exam. In addition students will have access to EverGreen Explanatory Notes, the Knowledge Bureau's Gateway to publications from CRA and the Department of Finance, including the Income Tax Act, Interpretation Bulletins, Folios, Information Circulars and Pamphlets/Publications.