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Arcus Legal depicts a family of three carrying travel bags and travel documents emigrating from Canada who have had to consider the tax implications of emigration.

Article by Johann Du Plessis, BComm, LLB, LLM (Tax)

Considering a move away from Canada? The tax implications are crucial to understand. Emigrating from Canada involves navigating complex tax rules that can significantly impact your financial planning.

 

We have been asked several times after the 2024 federal budget what the tax implications of emigrating from Canada will be. We do not specialize in emigration but decided to give a brief description to our clients of issues to consider. When a Canadian resident decides to emigrate, they are subject to certain tax implications that can significantly affect their financial planning. The primary consideration is the “departure tax,” which operates under the assumption that the individual has disposed of their property at its fair market value on the day they leave Canada.… [Read more]

Article by Gregg W. Knudsen, TEP

A Henson Trust is a type of trust established primarily for the benefit of individuals with disabilities, particularly those who qualify to receive government benefits. The key feature of a Henson Trust is that it is designed to protect the assets held within the trust from being considered as assets of the beneficiary for the purpose of determining eligibility for these government assistance programs. The disability can be mental or physical. The term Henson Trust is named after the successful litigant in a landmark Ontario case. In Henson v. Ontario, the Ontario courts found that certain assets held inside of a fully discretionary trust are not to be considered in an assessment for benefits under a means-based government assistance scheme.… [Read more]

Arcus Legal - Erin O'Brien - Best Lawyer award Halifax 2024

Arcus Legal is pleased to congratulate Erin O’Brien Edmonds, KC, TEP, on being selected by her peers as the Best Lawyers® 2024 Real Estate “Lawyer of the Year” in Halifax. Having previously won this award in 2016, 2018, 2019, and 2021, this year marks the fifth time Erin has received this honour. Erin is also recognized in the 2024 edition of Best Lawyers in Canada® for her work in Trusts and Estates.

 

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Commercial leases play a crucial role in establishing the relationship between landlords and tenants. However, many tenants in Nova Scotia may not be aware of the potential ramifications of signing a lease agreement without a termination clause. This essay serves as a cautionary tale, highlighting the risks and liabilities commercial tenants may face if their lease agreement lacks a termination clause.

1. Understanding the Termination Clause:

A termination clause in a commercial lease provides tenants with the right to end the lease agreement prematurely, subject to specific conditions or penalties as outlined in the clause. Without a termination clause, tenants may find themselves bound to the lease for the entire term, regardless of their circumstances or changing business needs.… [Read more]

A Family Trust is a legal arrangement in which a person, known as the settlor, transfers assets (such as money, real estate, or investments) to a trust that is managed by one or more trustees for the benefit of designated beneficiaries. The beneficiaries are typically family members, such as a spouse, children, or grandchildren.

In Nova Scotia, Family Trusts can be established as either an Inter Vivos Trust (created during the settlor’s lifetime) or a Testamentary Trust (created upon the settlor’s death through their Will). Family Trusts can offer various benefits, including:

1. Tax planning: A Family Trust can help minimize taxes under very specific circumstances and mostly in the case where there is a sale of an active business owned by the trust.… [Read more]

Selling your company in Nova Scotia involves several steps, and it is highly recommended to seek the guidance of a lawyer, accountant, or business advisor to ensure a smooth and successful transaction. Here is an outline of the process:

1. Prepare your business for sale: Before putting your company on the market, make sure it is in the best possible shape. This may include improving financial records, resolving outstanding legal issues, optimizing operations, and ensuring all necessary licenses and permits are up to date.

2. Get a Valuation: Determine the fair market value of your company. This can be done by consulting with a professional business valuator or using industry-specific valuation methods.… [Read more]

In Nova Scotia, you might consider forming a company for your business when:

1. Limited liability protection: You want to protect your personal assets from potential business debts and liabilities. By forming a company, the business becomes a separate legal entity, which means the owners (shareholders) are not personally liable for the company’s debts, except in cases of fraud or negligence.

2. Raising capital: If you plan to raise funds from investors or financial institutions, having a company structure can make it easier to attract investment. Investors often prefer to invest in a company because it provides a clear legal framework for ownership and profit distribution through shares.… [Read more]

Let’s imagine a company as a big boat, and who has what roles:

Shareholders: The shareholders would be the people who put money into buying the boat. They own different parts of the boat depending on how much money they put in. They want the boat to go to places where it can make more money, like treasure islands. But, they usually don’t drive the boat, they just check on it from time to time.

Directors: Now, the boat needs someone to decide where it should go, that’s the job of the directors. They are like the ship’s captains.… [Read more]

A company is a type of business organization that is formed to carry out specific activities, such as providing goods and/or services.

A company operates as a separate legal entity, meaning it has its own rights and responsibilities, separate from the people who own or manage it. The owners of a company are called shareholders, and they invest money into the business by buying shares, which represent a portion of the company’s ownership. In exchange, shareholders may receive a share of the company’s profits, called dividends. A company is managed by a group of people called directors, who make decisions on how the business should run.… [Read more]

With springtime upon us, and preparing for tax season, many of us may have estate planning on the mind. You may be asking yourself “Do I Need a Will?”.

In Gregg Knudsen’s, “Do I Need a Will?” you will learn about Wills and the laws under our provincial jurisdiction in Nova Scotia regarding your Estate Planning.

Do I Need a Will?

By Gregg W. Knudsen, TEP

This is a commonly asked question of any lawyer who practices in this area of law. The answer is “Yes, everybody should have a Will”. There are several reasons. First, to distribute your assets as you want them to be distributed.… [Read more]