Uses of Trusts in Estate Planning - Stewart McKelvey
Uses of Trusts in Estate Planning - Stewart McKelvey
Uses of Trusts in Estate Planning - Stewart McKelvey
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Taxation <strong>of</strong> <strong>Trusts</strong><br />
• Detailed and specific rules <strong>in</strong> the Income<br />
Tax Act<br />
• Exceptions to almost every rule<br />
• The settlor generally pays tax on accrued<br />
capital ga<strong>in</strong>s on assets settled to the trust<br />
– a disposition for tax purposes<br />
• Income reta<strong>in</strong>ed <strong>in</strong> a trust is taxed at the<br />
top marg<strong>in</strong>al rate for <strong>in</strong>dividuals (47% <strong>in</strong><br />
PEI and 48% <strong>in</strong> NS)