The tax benefits of giving your heirs money while youre still alive

TORONTO — While there are a number of reasons for a parent to consider passing on a living inheritance to adult children, one that may be overlooked is tax savings.Cash and assets that parents have no intention of spending while they’re alive — what tax and estate planning expert Jamie Golombek calls “never money” — may wind up costing more than necessary in fees and taxes.“If mom and dad have never money, all they’re doing is growing a pile of wealth and paying tax every year on that income, perhaps at a very high tax rate,” says Golombek, who is a member of the CIBC Wealth Strategies Group.“Whereas that money could be used by the kids and perhaps invested at a lower tax rate or used to pay down debt.”What many people don’t realize, Golombek adds, is that Canada has no gift tax.As a result, cash given to children, grandchildren or any other individual while you’re alive won’t be taxed.“If you want to give them $1 million tomorrow, it’s not reportable anywhere. It doesn’t show up on their returns. It’s not income,” says Golombek.However, the giver could be liable for tax on capital gains if the gift is property that has appreciated in value — as might be the case with a family cottage or a portfolio of stocks.But that isn’t to say there aren’t any tax advantages to gifting appreciable assets to your children while you’re alive.For example, a parent in a high tax bracket that gifts funds from a large non-registered portfolio generating taxable investment income to a child could potentially avoid future clawbacks of Old Age Security, says Jason Heath, a fee-only financial planner with Objective Financial Partners in Toronto.“If you’re a senior who’s getting OAS clawed back, you’re paying a minimum of 43 per cent tax and you could easily be paying up to 62 per cent tax depending on your province of residence,” Heath says.“So there’s a good chance there are some tax-saving opportunities by taking non-registered assets out of your hands and giving it to a child to pay down their mortgage or to make an RRSP contribution.”Golombek says another benefit of giving your heirs an early inheritance is that it could help them avoid or reduce probate fees — an estate administration tax that varies by province but is based on the value of the estate.“For example, in Ontario 1.5 per cent is the estate administration tax,” says Golombek. “But if you don’t own the asset when you die, you don’t pay the tax. So transferring wealth before you die would minimize (the tax).”Because the tax rules around gifting assets are complicated, Heath says it’s important to solicit advice from the right professional.“I’ve come across people who took advice from a teller at the bank, or an investment adviser or an accountant without strong tax and estate planning expertise, or a generalist lawyer whose not a tax and estate lawyer, who have given outright incorrect advice,” he says.“People need to be sure that when they’re looking for tax or estate planning advice on a complex issue that they’re speaking to someone who understands that issue.”Follow @DaveHTO on Twitter. read more

The bottom line Alberta budget highlights by the numbers

Alberta Finance Minister Joe Ceci, centre, delivers the 2015 provincial budget in Edmonton on Tuesday, Oct. 27, 2015. THE CANADIAN PRESS/Topher Seguin by The Canadian Press Posted Oct 27, 2015 3:20 pm MDT Last Updated Oct 27, 2015 at 5:00 pm MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email EDMONTON – Alberta’s NDP government tabled its first budget Tuesday. Here is a look at some of the numbers:— A $6.1-billion deficit on revenues of $43.8 billion and expenses of $49.9 billion. The plan is for a $5.4-billion deficit next year, then a $4.4-billion deficit and a $2.1-billion deficit followed by a $1-billion surplus in fiscal 2019-2020.— The four largest ministries — Health, Education, Advanced Education and Human Services — consume 75 per cent of all operational spending.— Revenue is projected to grow by six per cent a year over the next four years, while expenses will be held to two per cent a year.— West Texas Intermediate, the benchmark price of oil, is budgeted to average US$50 barrel this fiscal year, then $61 and $68 in the following two years. It currently sits at about $43.— Resource revenue for 2015-16 is down $6 billion from the previous year.— Tax changes and new revenue initiatives are expected to bring in $1.5 billion this fiscal year and $2.3 billion a year in the following two years.— Alberta’s contingency account is to drop to $3.3 billion from $6.5 billion this year and is expected to be drained by early 2017. The bottom line: Alberta budget highlights by the numbers read more

Alevel results 2016 Which subjects did students do the best and worst

first_imgUse regions/landmarks to skip ahead to chart and navigate between data series.The biggest increases in A* – A pass rate by subject. Across the last six year, the five subjects whose A*-A pass rate has increased the most in percentage pointsLong description.No description available.Structure.Chart type: line chart.The chart has 1 X axis displaying values.The chart has 1 Y axis displaying values.Chart graphic.The biggest increases in A* – A pass rate by subjectThe biggest increases in A* – A pass rate by subject – Highcharts CloudThe biggest increases in A* – A pass rate by subjectAcross the last six year, the five subjects whose A*-A pass rate hasincreased the most in percentage pointsAcross the last six year, the five subjects whose A*-A pass rate has increased the most in percentage pointsPerforming/ Expressive ArtsIrishPhysical EducationGeneral StudiesWelsh2011201220132014201520160102030405060Source: JCQ The gender gapThere is still a significant gender gap when it comes to what boys and girls are taking for their A levels.  In a trend that continues into university study, subjects such as computing and physics are dominated by boys while girls flock to courses on performing arts and sociology.In terms of grades, there was a slight narrowing of the gap between the genders across all subjects – with 8.5 per cent of boys achieving the top A* grades compared to 7.7 per cent for girls, representing a narrowing of the gap between the genders by 0.1 percentage point for the first time in the last five years.  Find the results for your A level subject Use regions/landmarks to skip ahead to chart.Best A* – A pass rates in 2016. Percentage of students getting A* or A in 2016Long description.No description available.Structure.Chart type: column chart.column series with 5 columns.The chart has 1 X axis displaying categories.The chart has 1 Y axis displaying values.Chart graphic.Best A* – A pass rates in 2016Best A* – A pass rates in 2016 – Highcharts CloudBest A* – A pass rates in 2016Percentage of students getting A* or A in 2016Further MathsIrishMathsGermanFrench0102030405060Source: JQC; excluding “other modern languages” Want the best of The Telegraph direct to your email and WhatsApp? Sign up to our free twice-daily  Front Page newsletter and new  audio briefings. Performing arts, physical education and general studies are among some of the A levels with the largest increases in the percentage of students getting A* or A between 2011 and 2016.Irish – one of the top five performing A levels for the top grade pass rate – has also improved in recent years. Click here for 2017 results Search for Clearing vacancies onlineDownload the Clearing app on iPhone or AndroidJust over a quarter of A level students gained an A* or A this year, as students from across the UK receive their results today.The pass rate for the top grades follows a trend seen across this decade, with another drop on last year’s results to 25.8 per cent of students getting A or A* across all subjects.Students have performed well in mathematics and foreign languages, while courses such as ICT and media studies have struggled to get their students achieving the top grades in 2016. The worst performing A levelsThe lowest pass rates in 2016 were seen in ICT and media, film and TV studies.  Use regions/landmarks to skip ahead to chart and navigate between data series.Gender gap: The subjects with the biggest gender divides. Percentage of males and females taking the 10 subjects with the biggest gender gap in 2016Long description.No description available.Structure.Chart type: column chart.The chart has 1 X axis displaying categories.The chart has 1 Y axis displaying values.Chart graphic.Gender gap: The subjects with the biggest gender dividesGender gap: The subjects with the biggest gender divides – Highcharts CloudGender gap: The subjects with the biggest gender dividesPercentage of males and females taking the 10 subjects with the biggestgender gap in 2016Percentage of males and females taking the 10 subjects with the biggest gender gap in 2016MaleFemaleComputingPerforming/ Expressive ArtsWelshPhysicsSociologyPsychologyArt and Design subjectsCommunication StudiesEnglishFurther Maths020406080100120Source: JQC; excludes “other sciences” This has followed recent years, where these subjects have struggled to get their students to achieve the top A or A* grades. One in 10 ICT students gained an A or A* in 2016 – down from 12 per cent in 2011. Some 8,700 students took the course this year, falling by 3,300 in five years, Use regions/landmarks to skip ahead to chart and navigate between data series.The biggest falls in A* – A pass rate by subject. Across the last six year, the five subjects whose A*-A pass rate has fallen the most in percentage pointsLong description.No description available.Structure.Chart type: line chart.The chart has 1 X axis displaying values.The chart has 1 Y axis displaying values.Chart graphic.The biggest falls in A* – A pass rate by subjectThe biggest falls in A* – A pass rate by subject – Highcharts CloudThe biggest falls in A* – A pass rate by subjectAcross the last six year, the five subjects whose A*-A pass rate has fallenthe most in percentage pointsAcross the last six year, the five subjects whose A*-A pass rate has fallen the most in percentage pointsCommunication StudiesClassical subjectsEconomicsPolitical StudiesHistory2011201220132014201520161020304050Source: JCQ Use regions/landmarks to skip ahead to chart.Worst A* – A pass rates in 2016. Percentage of students getting A* or A in 2016Long description.No description available.Structure.Chart type: column chart.column series with 5 columns.The chart has 1 X axis displaying categories.The chart has 1 Y axis displaying values.Chart graphic.Worst A* – A pass rates in 2016Worst A* – A pass rates in 2016 – Highcharts CloudWorst A* – A pass rates in 2016Percentage of students getting A* or A in 2016ICTMedia/ Film/ TV StudiesCommunication StudiesCritical ThinkingGeneral Studies0102.557.512.515Source: JQC In terms of the largest falls in A* – A pass rate since 2011, communication studies and classical subjects have suffered the most. Economics, political studies and history have also struggled to keep their students achieving the top A* and A grades since 2011. Use regions/landmarks to skip ahead to chart.The biggest increases and drops in student numbers. Percentage change in number of students; top and bottom five for 2011-16Long description.No description available.Structure.Chart type: column chart.column series with 10 columns.The chart has 1 X axis displaying categories.The chart has 1 Y axis displaying values.Chart graphic.The biggest increases and drops in student numbersThe biggest increases and drops in student numbers – Highcharts CloudThe biggest increases and drops in student numbersPercentage change in number of students; top and bottom five for 2011-16ComputingFurther mathsEconomicsReligious StudiesGeographyWelshPerforming/ Expressive ArtsPhysical EducationGeneral StudiesCritical Thinking-1000-125-75-50-25255075Source: JQC What subjects are students taking?The most popular subjects in 2016 are maths, English, biology, psychology and history. Some 92,200 students decided to take maths this year, while 84,700 took English and 62,700 opted for biology.But during this decade, there has been a consistent increase in the number of students opting for computing and further maths.The number of students taking computing this year has increased by 56 per cent since 2011, while further maths now has a quarter more students. This comes at the price of subjects such as general studies and critical thinking, which are not recognised by many top universities and currently see almost half the number of entries they had in 2011. The best performing A levelsOn the other hand, A level students have excelled in subjects such as mathematics and Irish. Continuing the success of recent years, more than half of those taking Further Maths achieved an A or A*, while 88 per cent achieved a C or above.2016 saw exactly the same top five best performing A levels as in 2015, with foreign languages such as German and French each seeing more than a third of their students achieving an A or A* this year. Despite this, both of these languages have seen a decline in interest from students, with just 13,500 students taking both subjects this year, down from 18,400 in 2011.last_img read more