Tax Alerts

Surprise legislation impacts estate planning

The 2014 federal budget introduced measures that will have a significant impact on the taxation of testamentary trusts, effective for the 2016 and subsequent taxation years. These changes were noted in our recent release, Changes are on the way that impact post-mortem planning.

In late August 2014, the Department of Finance released draft legislation to implement these proposals, but this legislation included some surprise measures not previously announced in the 2014 federal budget. These new proposals may have a significant impact on some common estate planning strategies, particularly those involving spousal and other life interest trusts. This legislation was recently incorporated into Bill C-43, the second 2014 federal budget bill, currently making its way through Parliament with enactment expected later this fall.

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