• Service: Tax, Global Mobility 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

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