Jean-Pierre Poulin
Partner | CPA, CA | Tax

One significant component of wealth management is transferring your property at the time of death.

The objective of will and estate planning is to ensure that your property transfer is as straightforward as possible and maximizes the tax benefits. In practice, among others, planning serves to determine your personal and financial objectives to:

  • Protect your heirs’ financial interests;
  • Minimize taxes, administrative costs and delays;
  • Ensure the smooth settlement of your affairs.

A will is undeniably the best way to set out your objectives and intentions.

Reduce your estate’s tax burden

The terms and clauses in this document will determine the parameters of your plan to transfer your property by setting out how it will be distributed to your heirs. You can, therefore, ensure that the people you choose are financially protected while maintaining overall wealth management.

By judiciously using the provisions in tax legislation, you can also reduce your estate’s and heirs’ tax burden. Depending on the type of property you own (real estate, private company shares, partnership units, registered plans [RRSP, RRIF and TFSA], investment portfolio, etc.) and what your will states, you can define strategies to meet your needs while maximizing the tax considerations.

Questions to guide your estate planning

The following questions could help guide your estate planning thought process:

  • Do you have a will? If so, is it up-to-date?
  • Have you listed all of your assets and liabilities (current and potential)? If so, are the lists recent?
  • Have you determined who should inherit what? If so, do you want to make changes?
  • Do some of your heirs have special needs?
  • Will your estate have sufficient cash to cover the taxes payable at the time of your death and any cash legacies you may wish to make?

A careful analysis of your financial situation and defining an estate plan that reflects your wishes will avoid conflicts and confusion in settling your estate. Our will and estate planning experts can support you in the process to ensure that your planning is compliant and to provide you with peace of mind.


02 Feb 2018  |  Written by :

Mr. Jean-Pierre Poulin is a partner at Raymond Chabot Grant Thornton. He is your expert in taxation...

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Adviser alert – January 2018

A briefing for Chief Financial Officers

The Grant Thornton International IFRS team has published the 2017 edition of Navigating the changes to International Financial Reporting Standards: A briefing for Chief Financial Officers. This publication has been designed to provide chief financial officers high-level awareness of the recent changes that will affect companies’ financial reporting in the future.

This publication covers both new standards and interpretations that have already been issued, and new amendments made to existing ones, giving brief descriptions of each.

Navigating the changes – What’s new?

The 2017 edition of this publication has been updated for changes to International Financial Reporting Standards (IFRS) that have been published between December 1, 2016 and November 30, 2017 and now covers the following financial year-ends:

  • March 31, 2017;
  • June 30, 2017;
  • September 30, 2017;
  • December 31, 2017;
  • March 31, 2018.

This publication has been designed to help entities planning for a specific financial reporting year-end identify changes mandatorily effective for the first time, changes not yet effective, and changes already in effect. For each change included in the publication, commercial implications are outlined with information on how many entities will be affected, and potential impacts on such entities. A traffic light system indicates the assessment of the answers to these questions.

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Canadians who own real estate in the United States may be subject to estate tax. There are a number of factors related to such property that must be considered in order to fully understand what is involved.

Here are answers to some frequently asked questions our U.S. tax experts have received on this topic.

Q: What is the U.S. estate tax?

A: The U.S. estate tax is a tax that is payable by non-residents of the U.S. who own property in the U.S. at death. This estate tax is calculated on the fair market value of property located in the U.S. at the time of death.

Q: If at the time of my death I own real estate in Florida valued at $1,000,000, do I have to pay the U.S. estate tax?

A: For the year 2018, if the value of your worldwide estate is less than $11,200,000 (including your RRSPs), no estate tax is payable upon death. However, if the value of your worldwide estate is greater than this amount, you should consult a tax adviser from Raymond Chabot Grant Thornton.

Q: If at the time of my death, I own real estate in the U.S. but no estate tax is payable, do any U.S. tax forms still have to be filed?

A: Yes. The requirement to file form 706-NA is mandatory if, at the time of your death, you own property in the U.S. valued at over US$60,000.

Q: What is the best way to own real estate in the U.S. (condo/house)?

A: It all depends on the facts at hand, and as such, each case must be assessed individually. You should always consult your tax adviser before buying property in the U.S.

Q: Could other fees be payable at the time of my death if I own real estate in the U.S.?

A: Yes, probate fees could be payable to the State. Some planning options can make it possible to avoid probate fees.

Q: Should I prepare a mandate in case of incapacity if I own real estate in the U.S.?

A: The Canadian mandate in case of incapacity is not recognized in the U.S. You should therefore have a durable power of attorney which is recognized in the U.S.

Q: Should I amend my Canadian will if I own real estate in the U.S.?

A: In some cases it would be preferable to have a specific, English-language will for that property. Such a specific will could make it easier to transfer the property to the heirs at the time of death.

Do you have questions relating to U.S. tax issues? Our tax experts can help you.

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Maximilien Larivière
Advisor | ing. jr, M. Ing. | Tax

Electric cars are certainly a positive addition to the world of automobiles in the current ecological and economic context: reduced greenhouse gas emissions, public health benefits, and, for the consumer, no need to fill up at the gas station.

Despite these benefits, there are still a number of obstacles to the mass use of electric cars. The most significant challenges are the limited range compared to internal combustion vehicles and the long refuelling time.

Additionally, at this time, a fully electric car costs considerably more than an internal combustion vehicle, due in particular to the high cost of an electric vehicle battery. A study by the major automobile manufacturers reveals that the following criteria must be met for an electric vehicle to directly replace an internal combustion model:

  1. Have a range of 320 km;
  2. Have a battery with a cost under $100/kWh;
  3. Refuel in under 10 minutes.

To achieve these objectives, several initiatives have been taken in recent years to provide greater refuelling flexibility and reduce the purchase price differential with an internal combustion vehicle.

The Tesla Supercharger Network and the Electric Circuit

As of mid-2017, there were only four Tesla Superchargers in Québec. Tesla plans to open ten more locations during 2018, bringing the total to about 15 across the province. Tesla also has a network of Destination Charging Partners, that is, businesses having obtained two Tesla dedicated charging stations (8 kW or 16 kW) at a low price that allow Tesla owners to refuel at these locations. Since mid-2017, 59 stations have been in operation, providing Tesla with a total of 63 refuelling locations in Québec.

The Electric Circuit has been constantly expanding since it was introduced on March 30, 2012. There are currently 961 charging stations in Québec, including eighty-one 400-volt fast-charge stations. Businesses, municipalities and institutions install charging stations on their premises at their expense, with the assistance of the Québec government, and collect the revenues.

Financial incentives to purchase an electric car

The Transportation Electrification Action Plan provides for the addition of 100,000 electric vehicles in Québec by 2020. To achieve this objective, purchase rebates of up to $7,000 have been provided and charging station installation support is offered for individuals and on the road network.

Electric vehicle charging stations

Ford recently undertook a study to resolve the issue of refuelling time. The solution is obvious: increase the power of charging stations. Their study related to 400 kW stations (eight times more powerful than current stations). There are a number of technical issues with charging stations this powerful: activating the station uses up considerable energy in the electrical network and there is an overheating problem.

A number of technologies are currently being studied, such as backup batteries in a trailer, that could be used when needed and charging the rest of the time. This could address the problem of energy consumption peaks due to high voltage charging stations.

Raymond Chabot Grant Thornton - image
Raymond Chabot Grant Thornton - image

Québec’s place in the electrical transportation industry

Québec is in the niche vehicle sector of the electrical transportation industry, that is, school (Autobus Lion) and city (Novabus) buses and work vehicles (Hydro-Québec bucket trucks and industrial assembly line vehicles). These are ideal applications for electric technology, since work cycles make it easier to recharge vehicles.

There are potentially significant financial gains for operators, given that fuel-related operating costs are so high. Consumers can be sure of one thing, while they may not plan to purchase an electric car, this technology will have an impact on their daily lives in the near future.

Despite the initiative, the general public is slow to adopt electric vehicles. The number of charging stations may be increasing, but the fact remains that refuelling takes far too much time for most people (best case scenario: 30 to 60 minutes, often much longer).

Hybrid cars for the general public?

According to many car manufacturers, plug-in hybrids will likely be the route taken at this time. They believe that a fully electric vehicle will be a hard sell to the general public, but selling plug-in hybrids will be easier. With a 40-50 km range, many such vehicles are already available from some manufacturers, who are targeting this market for the near future.

This strategy is based on extensive studies showing that, for the average North-American driver, a range of 75 km meets 75% of the needs for individual transportation. Most manufacturers are therefore opting for this compromise in order to offer a less costly solution with a smaller battery. In the Montréal region, for example, such a solution would make it possible to travel back and forth from the suburbs to the city centre on a daily basis, without using any gas, at an initial purchase price that is far more affordable than an electric vehicle with a range of a few hundred kilometres.

There are still many unanswered questions about the general public opting for fully electric cars. Would consumers be inclined to adopt this technology if the charge time were reduced and the range increased? What if it were just a matter of rethinking how we see transportation, would consumers be prepared to compromise on some things to take advantage of the many benefits of electric cars? Is the solution plug-in hybrids?

And what about you, are you prepared to use an electric vehicle as your means of transportation?

Drafted with the assistance of Pierre-Luc Lapointe, Eng., Project Manager, Innovative Vehicle Institute, Saint-Jérôme.

24 Jan 2018  |  Written by :

Maximilien Larivière is an advisor at Raymond Chabot Grant Thornton. He is your expert in taxation...

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