NRT Tax Traps And The Non-Specialist Advisor - Part 4

This article is the last instalment of the four-part series.

In this, the fourth and final instalment of the Series, we'll examine what happens when trusts become subject to and then cease to be subject to the Section 94 Trust Rules. Using this knowledge and the technical knowledge described in the second and third instalments of the Series we'll then analyze how the Section 94 NRT Rules apply to common cross-border testamentary planning undertaken by Canadians who have US beneficiaries (i.e., the fourth example described in the first instalment of the Series). I have also added a discussion of how the choice of executors, trustees and how even assisting ailing and/or aging family members can inadvertently engage the Section 94 NRT Rules. As a bonus, the Series will close out with a review of some tax traps involving Pure NRTs.