[WSBAPT] Canadian Property Tax question

[Sarah J. Dion]

Just FYI- I recently heard from a client (not 100% confirmed) that under Canadian law, noncitizens are not allowed to leave property to other noncitizens via will. He said Canada is looking to limit foreign investment in real estate.

Sarah Jael Dion
skellenger bender
ATTORNEY
TRUST AND ESTATE PRACTICE
Estate Planning | Probate

PHONE 206.623.6501 | FAX 206.447.1973
sdion at skellengerbender.com|<mailto:sdion at skellengerbender.com%7C>www.skellengerbender.com<http://www.skellengerbender.com/>
1301 Fifth Ave., Suite 3401 | Seattle, WA 98101
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Diane J. Kiepe
Sent: Monday, June 22, 2020 10:17 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Canadian Property Tax question


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Hello Brent,

I think more facts need to be considered before you draw up anything.

From an income tax perspective, you typically want to get a step-up in basis on the death of underlying client and pass at death.  From a transfer perspective you want to consider goals/objectives (for example dad doesn’t care if heir receives and sells the next day or….).  From an estate tax planning objective, the decision whether to gift now or later may be different (or may some now the rest later).

I am currently drafting a single-member LLC for a similar situation – dad will be sole owner during life, kids will inherit units subject to an operating agreement that considers all the issues one must consider for vacation property.  This family in particular has expressed the goal of hoping it is a family spot for generations to come but are also wise enough to realize as generations pass, people move, families expand, and with more number of people the greater the likelihood of differences in opinions etc.

I would just also add, if the decision was made to transfer during life for whatever reason, client should decide what if any interest will he/she retain and what, if anything, does the retained rights mean for the client both at an income tax level and estate tax level.

Happy to talk shop anytime if you have any questions on how I review this matter.  As with most estate planning matters, one size never fits all.

Best of luck,


Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Brent Williams-Ruth
Sent: Monday, June 22, 2020 9:56 AM
To: WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com<mailto:WSBAPT at lists.wsbarppt.com>>
Subject: [WSBAPT] Canadian Property Tax question

Good Morning List -

A client has a valuable vacation home in Whistler. Need to consult with someone regarding ascertaining the best avenue for transfer to heir. Transfer now while alive? Wait until death?

Thank you!


Brent Williams-Ruth
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

Office/Scheduling Phone: (425) 830-5134

Direct Mobile: (206) 889-7919

e-mail<mailto:Brent at Williams-RuthLaw.com> / website<http://www.Williams-RuthLaw.com/> / facebook<http://www.facebook.com/bwrconsults> /

As of July 1, 2019 - I began operating as the Law Offices of Brent Williams-Ruth a division of BWR Consulting, PLLC. Please note the new points of contact Brent at Williams-RuthLaw.com<mailto:Brent at Williams-RuthLaw.com> and www.Williams-RuthLaw.com<http://www.Williams-RuthLaw.com>
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