The growing size of estates means higher executor fees and a spike in income that executors have to report on their tax returns
. Get exclusive investment industry news and insights, the week’s top headlines, and what you and your clients need to know.
For example, on a $1-million estate in which fees are 5 per cent – or $50,000 – an executor can likely be pushed into a higher tax bracket. For older Canadians, the executor fees could also result in a clawback or elimination of their Old Age Security benefits. Donating to a registered charity and receiving a charitable tax credit is another way to reduce the tax hit from executor fees, Mr. Erez says.
If the same individual is an executor handling a $3-million estate and getting a 3 per cent executor fee, or $90,000, they would pay an additional $33,300 in taxes, based on the additional income being taxed at marginal rates of up to 43.7 per cent. “You need to put it into perspective,” he says. “If you’re getting an executor fee that’s significantly higher than $8,000, you may not lose sleep over losing your OAS that year.”Executors don’t have to take compensation for their services, notes Akua Carmichael, an independent wills and estates lawyer in Toronto. In some situations, she says they may be named as a beneficiary and receive a gift from the estate tax-free as beneficiaries generally don’t pay taxes on the gifts they receive.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pandemic lockdowns compared to serving prison time in a new studyLittle attention was paid to the psychological consequences of lockdowns during the COVID\u002D19 pandemic.
Read more »
Saudi Arabia to cut oil output by 1 million barrels per day to boost slumping pricesFRANKFURT, Germany (AP) — Saudi Arabia will reduce how much oil it sends to the global economy, taking a unilateral step to prop up the sagging price of crude…
Read more »
SIMMONS SAYS: Maple Leafs' Auston Matthews will be the highest paid player in the NHLThe usual popular collection of here and there and this and that
Read more »
Back Roads Bill on the cutting edge of chainsaw developmentThis week, Back Roads Bill takes us through some of the histories of chainsaws which are an integral part of life on the back roads
Read more »
Back Roads Bill on the cutting edge of chainsaw developmentThis week, Back Roads Bill takes us through the history of chainsaws, an integral part of life on the back roads
Read more »
Another northern Quebec town evacuated as wildfires spread, feds approve military aid | Globalnews.caFederal Emergency Preparedness Minister Bill Blair confirmed Saturday the federal government had approved a request from Quebec seeking military assistance.
Read more »