The government tabled a detailed Notice of Ways and Means Motion
today to implement a number of changes announced in Budget 2014, as
well as other measures. One of these changes will provide greater
flexibility with respect to charitable gifts that are made in a
Currently, any charitable gifts in an individual's will are
deemed to have been made by the individual immediately before they
died and the donation tax credits that arise from the charitable
gift can be used in the deceased's terminal tax return or the
immediately prior tax return. It is not possible for any excess
credits to be used by the estate to offset any income that may be
earned by the estate.
The proposed changes will provide additional flexibility so that
the donation tax credits can be used by the deceased, or by the
deceased's estate. The draft legislation provides that for
deaths that occur on or after January 1, 2016, the estate will be
deemed to have made the charitable gift at the time the property is
transferred to the charity, and the donation tax credit can be used
the estate in the taxation year in which the gift is made;
the estate in an earlier taxation year;
the estate in the five subsequent taxation years;
the deceased in the year of death; or
the deceased in the year prior to the year of death;
In order to benefit from this increased flexibility, the
charitable gift must be transferred to the charity within 36 months
of the individual's death, which may be difficult in situations
where there is ongoing litigation or other issues that delay the
administration of the estate.
Overall, these proposed changes are positive as
they will provide more flexibility for charitable gift planning in
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It is not uncommon for parents to provide monetary gifts to their adult children. Parents may wish to help their child with a down payment on a property, or help pay out their child's existing mortgage.
On March 31, 2014, BC's new Wills, Estates and Succession Act1 ("WESA") will come into force. WESA introduces new protections for beneficiaries of estates that are in danger of being disputed or deemed ineffective by a court.
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