Last updated: October 29 2008

Year End Planning Critical for Individuals and Executors

The global financial crisis, which is of significant concern to investors and retirees in planning the right outcomes before the end of 2008, must also be considered by executors dealing with the financial consequences at death for Canada's aging demographic. The opportunity to add value as an informed executor of the estate of grandparents, parents, and siblings is both an honour and a large responsibility that can be extremely costly when the correct tax consequences are missed.

Evelyn JacksEvelyn Jacks and a detailed workshop on planning with trusts with John Poyser. Tax and financial advisors who want to be up to speed on the latest information to maximize tax savings on personal transitions, will want to participate November 14 to 21 in Winnipeg, Toronto, Calgary, Vancouver and Edmonton.

"Practical education on year end planning for families and individual investors in this critical time will be discussed in detail," says Evelyn Jacks, President and Founder of The Knowledge Bureau. "However, we also are very pleased to review the astute preparation of the final return of those who pass away this year, in conjunction with various trust structures available. We believe this is of particular relevance in light of the significant financial turbulence we are experiencing today."

John PoyserJohn Poyser, LL.B. from the firm Inkster, Christie, Hughes and Knowledge Bureau Faculty Member, will host a detailed discussion on that subject. Did you know, for example, that when a person passes away and their estate passes, in whole or in part, to a spouse or spouse trust, it is possible to "harvest capital losses?"

John will show that is achieved by opting out of the rollover available under subsection 70(6) on an asset by asset basis. To the extent that assets might have a pent up capital gain and certain other assets might have pent up capital losses, the executors can trigger gains and losses on a targeted basis to cross-cancel them in the deceased's income tax return rather than carrying them forward into the estate where they might not be effectively used.

Advisors and the executors they work with, must also be aware of rules relating to qualified farm property and qualifying small business corporations, where a capital gains exemption is available. Depending on the terms of the trust, the designation does not have to be made evenly or equally among a collection of beneficiaries, but can be made in a way where the gains are allocated to the beneficiaries who have the most opportunity to take advantage of it, and other forms of income are allocated to other beneficiaries.

Early registration for The November Year End Tax Planning Workshops ends October 31. To register call 1-866-953-4769 or enrol online. Dates, cities and venues appear below:
November 14
194 Broadway
November 17
Toronto East
1250 Eglington Avenue E
Toronto, ON M3C 1J3
November 18
Toronto West
33 Carlson Court
Toronto, ON M9W 6H5
November 19
November 20
837 West Hastings Street
November 21
7230 Argyle Road

Click here for more details.