Global

Details

  • Service: Tax, International Executive Services
  • Type: Regulatory update
  • Date: 6/12/2014

Canada - Changes to discretionary trust rules in British Columbia 

June 12:  In British Columbia, amendments to limit a spouse or common-law partner's rights to certain trusts' property in the event of a relationship breakdown were enacted into law in late May 2014.

This change may be good news for certain taxpayers who live in British Columbia, including beneficiaries of a discretionary trust and parents who have set up a discretionary trust with their children as beneficiaries.


The new rules limit the spouse's legal right to property under a discretionary trust deed to only half of the growth in the accrued value of the spouse's beneficial interest in property held in the trust while they were married or in a common-law relationship. Previously, the "excluded property" was the property of the trust itself—not the spouse's beneficial interest in the trust.


Read a June 2014 report prepared by the KPMG member firm in Canada: B.C. Enacts Fix for Discretionary Trust Estate Planning




©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now