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So far Arcus Legal has created 45 blog entries.

Business Tax Planning – Part 3 – Using a “family trust” to move funds between businesses

A family trust can serve as a “highway” to move funds between your active business corporation and your other corporations. Trusts are very useful in succession planning and for funding an investment corporation or property corporation.

When your business has settled, is profitable, and you no longer need massive capital injections to grow the business, you should consider establishing a family trust as part of a tax
efficient corporate structure. Contact our Business Tax Planning Team to learn how.

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2021-07-09T12:12:59-03:00July 9th, 2021|Business Tax Planning|

Business Tax Planning – Part 2 – How can I pay less tax when I sell my business?

If you are planning on selling your business in the future, you should be aware of the Lifetime Capital Gains Exemption on the sale of active small businesses.

When you sell a capital asset, such as shares of a company, that is usually taxed as a capital gain. However, when you sell shares of an active business, you may qualify for a tax incentive called the Lifetime Capital Gains Exemption, which allows you to claim almost $900,000 of the capital gain exempt from taxes. That means you can pocket up to $900,000 tax-free (although the alternative minimum tax can apply).

Your business […]

2021-06-30T14:56:01-03:00June 30th, 2021|Business Tax Planning|

Community rallies to provide home for deserving family

Arcus Legal congratulates the Wiggins family on their new home. Chelcie and Alvero Wiggins (far right) and their four young children were selected by non-profit organization A Home for Everyone to receive donations and support in acquiring a home. Alvero is an active community member in the North End of Halifax, known for his work with Hope Blooms and the LOVE Nova Scotia youth centre. He now lives with kidney disease and spends 9-10 hours a day on dialysis while awaiting a kidney transplant. Sarah MacLaren (far left), who worked with […]

2021-06-30T14:51:30-03:00June 28th, 2021|Community|

Tax Law Update – Bill C-208 lowers taxes on passing family businesses down to the next generation

Owners of family businesses will gain new tax advantages from a bill that has just passed and is expected to come into effect shortly.

Currently, selling your business to a complete stranger gives you tax benefits that you would lose if you sold to a family member. Bill C-208 extends these benefits to cases where shares in an active business are transferred to a company that is owned by a child, grandchild, or sibling. The sale of shares would now be treated as a capital gain instead of a dividend, meaning you would be taxed at a lower rate and potentially […]

2021-06-25T14:23:57-03:00June 23rd, 2021|Business Tax Planning|

Business Tax Planning – Part 1 – When to transfer your business into a company

When your business is thriving, and you make more money than needed to cover your personal expenses, this is the time to consider incorporating your business (transferring your business to a company).

From a purely tax perspective, you do not want to be taxed on all your business income in your personal name. You are taxed more than 25% on the income from your business (It gets higher as you fall into higher income brackets), whereas your corporation will only be taxed 12% for the income earned in the corporation. That is a massive difference in dollars available for you to […]

2021-06-30T14:58:26-03:00June 23rd, 2021|Business Tax Planning|

Estate Planning – Part 7 – Alter Ego Trust & Joint Partner Trust

Alter Ego Trusts (AET) and Joint Partner Trusts (JPT) are a more complex method of estate planning, but can be well-suited to certain situations. You must be over the age of 65 years to consider these methods of planning.

AET and JPT both are often used as a method of probate avoidance. However, these trusts also are more private than a traditional Will, because your Will is publicly available once your executor files for probate. Where there is no probate, your distribution is not made publicly available.

The downside is that AET and JPT are more expensive and complicated to set up […]

2021-05-05T16:11:23-03:00March 30th, 2021|Wills & Estates|

Estate Planning – Part 6 – Guardianship Appointment

When going through the estate planning process, an important aspect is appointing a guardian for your minor children. A guardian may be needed for your children should you die or lose capacity. The appointment of guardianship is accomplished by a document that is outside the Will because it could be needed before your death if you become ill.

Any person under the age of 19 in Nova Scotia is considered a minor. If you are a parent it is important to turn your mind to who you would like your child to be cared for if you become incapable of caring […]

2021-05-05T15:55:48-03:00March 25th, 2021|Wills & Estates|

Estate Planning – Part 5 – Personal Directive

A Personal Care Directive (“PD”) is where you delegate your decision-making authority regarding your personal care and your medical decisions to a trusted loved one. The PD applies only during your life, and only applies once your capacity has been assessed and you are deemed incapable of making your own personal care and medical decisions.

The person you appoint under your PD is called your Delegate. Your Delegate is usually a trusted family member such as a spouse, sibling, or adult child.

Once you appoint your Delegate, speak to them about your wishes and philosophy surrounding your personal and end of life […]

2021-05-05T15:32:40-03:00March 23rd, 2021|Wills & Estates|

Estate Planning – Part 4 – Power of Attorney

The Enduring Power of Attorney (“POA”) applies during your lifetime and ends on your death. The person you appoint in the POA is called the Attorney. The POA can be used by the Attorney when you are unable or unavailable to act for yourself in a financial or legal capacity. Your Attorney may act in situations if you become incapable of making financial and legal decisions. Your Attorney may also be instructed by you to act while you are still competent, but are physically unable to complete certain tasks. Your POA can be as broad or as specific as your […]

2021-05-05T15:10:07-03:00March 18th, 2021|Wills & Estates|

Estate Planning – Part 3 – Do I need a Last Will and Testament?

Do I need a Last Will and Testament?

YES! Every person should have a Last Will and Testament (“Will”). No matter how many assets you have or what your net worth is, every person should have a Will because your Will appoints a person to wrap up your affairs. Even if there are few assets to distribute, you will save your loved ones the cost and time of applying to the court to be appointed as your Personal Representative.

A Will takes effect on death, which means you can always change your Will during your life, so long as you are competent. […]

2021-03-17T08:59:52-03:00March 16th, 2021|Wills & Estates|
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