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by SQRT
27 Mar 2024 09:43
Forum: Under the Mattress: Protecting Your Money
Topic: Need to make $28k payment to dealership while outside Canada
Replies: 11
Views: 403

Re: Need to make $28k payment to dealership while outside Canada

NotJustDreaming wrote: 26 Mar 2024 22:30

The dealership has agreed to wait.
The obvious solution.
by SQRT
26 Mar 2024 18:20
Forum: Taxing Situations
Topic: New T3 requirements for joint accounts [that might be bare trusts]
Replies: 204
Views: 44291

Re: New T3 requirements for joint accounts [that might be bare trusts]

Late to the conversation. Some clarification will be appreciated. Last summer we set-up a joint cash non-registered brokerage account with our adult child (currently in university) who is also listed as the primary account holder. It was recommended that having us (parents) on the account was an easier / more direct way for us, at this time (while in university) to trade on our child's behalf. All trades and securities holdings have been with sums (>50k) from our child with no distributions/income/gains/losses/etc. attributed to us. From my limited understanding a T3 Trust Return will need to be completed, even though my partner and I have no attribution/benefit to us? Short response. You might want to read the thread. There is a $50k excl...
by SQRT
26 Mar 2024 18:15
Forum: Retirement, Pensions and Peace of Mind
Topic: Any 80+ yo travelers here?
Replies: 19
Views: 810

Re: Any 80+ yo travelers here?

Saintor wrote: 26 Mar 2024 18:05 I checked for a price on Medipac simulating a 80yo non-smoker on a 90 days getaway; average $3400. Now if 51-60; $2000. If 61-66; $2400.
In this view, I find the delta to 80yo almost reasonable.

I wonder if some high fees credit cards ($500+/yr) would be an alternative...
Credit cards have even more fine print. Doubtful they would cover an 80 year old, without a medical questionnaire?
by SQRT
26 Mar 2024 15:10
Forum: Under the Mattress: Protecting Your Money
Topic: Need to make $28k payment to dealership while outside Canada
Replies: 11
Views: 403

Re: Need to make $28k payment to dealership while outside Canada

Just wait until you get back. They will hold the car until then if they have a deposit. You can’t take delivery anyway?
by SQRT
26 Mar 2024 13:45
Forum: Taxing Situations
Topic: New T3 requirements for joint accounts [that might be bare trusts]
Replies: 204
Views: 44291

Re: New T3 requirements for joint accounts [that might be bare trusts]

Just filled the T3 and Sched 15 out for my MIL/ my spouse “Bare Trust”. Pretty easy. Will mail it in in a couple weeks unless info to the contrary is received. Really stupid.
by SQRT
26 Mar 2024 10:20
Forum: Retirement, Pensions and Peace of Mind
Topic: Any 80+ yo travelers here?
Replies: 19
Views: 810

Re: Any 80+ yo travelers here?

I’ve used Medipac on occasion, (no claims though, so not really “tested”). I’m only 73 so not sure how much it goes up in price as you age though. They have a web site application so why don’t you try it out, change your age and see how the premiums change.

The biggest issue with emergency travel insurance isn’t the cost though, it’s their post claim underwriting approach. If you make a significant claim they will go back into your history and application to look for any (often trivial) reason you aren’t covered.
by SQRT
26 Mar 2024 10:15
Forum: Taxing Situations
Topic: New T3 requirements for joint accounts [that might be bare trusts]
Replies: 204
Views: 44291

Re: New T3 requirements for joint accounts [that might be bare trusts]

Stan wrote: 22 Mar 2024 12:38 this is spousal trust from my wife's late father. As it turns out I am a trustee as well as an executor. They need this info as part of the new T3 reporting regulations.
I think an executor is a trustee.
by SQRT
25 Mar 2024 16:29
Forum: Taxing Situations
Topic: Attribution of Contributions from Joint Bank Account
Replies: 22
Views: 462

Re: Attribution of Contributions from Joint Bank Account

Let's say my wife inherit 600k. According to the last few posts... A. If she gives 200k to each one of our 3 kids, there is no issue with the attribution rule. Kid #1 spends it all on fancy vacations, kid #2 pays off their mortgage, kids #3 puts it all in VGRO in a non-registered account. No issue with attribution rule. B. My wife gives me 20k and puts the remaining 580k in her non-registered account. If I spend the 20k on a custom made Spanish guitar, there is no problem. If I put the 20k in my non-registered account, then the investment income from that 20k should be declared on her tax return. By Jove, I think you’ve got it. The key point is that it is not a gift tax (don’t have these in Canada) but rather an attempt to prevent “artific...
by SQRT
25 Mar 2024 12:45
Forum: Taxing Situations
Topic: Attribution of Contributions from Joint Bank Account
Replies: 22
Views: 462

Re: Attribution of Contributions from Joint Bank Account

Thank you all for your comments. I feel that it’s really a form over substance issue. At the end of the day what is the difference if there are separate bank accounts or one joint bank account as long as one spouse is not contributing more to their investments than they earned. I also agree that this would be a dangerous policy issue that would affect millions of Canadians that use joint bank accounts. Yes it is form vs substance to some degree. But the best “form” is for each individual spouse to actually fund their individual portfolio from their own earned cash flows. Allocations, will always be subject to CRA interpretation annd judgement. Although, as we all agree, CRA is unlikely to ask or if they ask, are likely to be reasonable.
by SQRT
25 Mar 2024 12:38
Forum: Taxing Situations
Topic: Attribution of Contributions from Joint Bank Account
Replies: 22
Views: 462

Re: Attribution of Contributions from Joint Bank Account

Gifting to adult children is fine, no attribution consequences. As Altared posted, a gift to a spouse will run afoul of the attribution rules if invested by that spouse. Since the Canadian ITA taxes individuals (no such thing as a spousal or joint return like the US) and there are graduated income tax rates, there is a need to keep incomes separate. Hence the attribution rules. I think they are actually quite rational and not silly at all.
by SQRT
25 Mar 2024 12:00
Forum: Taxing Situations
Topic: Attribution of Contributions from Joint Bank Account
Replies: 22
Views: 462

Re: Attribution of Contributions from Joint Bank Account

Likewise my spouse will receive two significant inheritances. These will go into her non registered account at TDDI. This is a joint account but she has funded the whole account and claims all income from it. She previously received an inheritance which also was put into her account. Inheritances are pretty easy to keep separate.
by SQRT
25 Mar 2024 09:56
Forum: Taxing Situations
Topic: Attribution of Contributions from Joint Bank Account
Replies: 22
Views: 462

Re: Attribution of Contributions from Joint Bank Account

CRA hasn’t displayed much appetite for going after attribution, I’m sure the OP and others will be fine, even if asked, which is very doubtful. I took a more rigorous approach with my second wife though. This was not only for income attribution issues. We kept all income and investment accounts separate (although they are all in joint accounts). My income was substantially higher than hers. Her investments were funded by her cash flows, mine by my cash flow. Although I fund both TFSA’s. I paid all household, travel, etc expenses which allowed her to maximize her investments. I would think that if I were back at the start of a marriage, I would want a financial arrangement that maintains some financial autonomy between spouses. Of course, th...
by SQRT
24 Mar 2024 05:41
Forum: Retirement, Pensions and Peace of Mind
Topic: Blackrock whitepaper on spending in retirement
Replies: 45
Views: 2093

Re: Blackrock whitepaper on spending in retirement

I would think leaving real estate out of VPW is best practice unless you want to be forced on selling some at an inopportune time. I have never included such. I figure my heir will get a pretty good inheritance even if it’s only the real estate that’s left. Ski didn't define whether he was thinking of investment real estate, or his principal residence, or both, to leave out of the VPW calculation. I would leave out the principal residence (my end of life reserve if I still owned one) but not investment real estate which is an asset that can monetized (and probably should be monetized) before getting too old to be a property manager anyway. My preference is to be down to a minimum footprint to be helpful to my POA and/or Executor. Those are...
by SQRT
23 Mar 2024 13:29
Forum: Taxing Situations
Topic: Record Keeping Practices: Scanned/Digital?
Replies: 31
Views: 918

Re: Record Keeping Practices: Scanned/Digital?

Very useful. Thanks to all.
by SQRT
23 Mar 2024 12:08
Forum: Taxing Situations
Topic: Record Keeping Practices: Scanned/Digital?
Replies: 31
Views: 918

Re: Record Keeping Practices: Scanned/Digital?

@ Mordko and Altared. Thanks. I’ve found printer scanners hard to use but I’ll give it another go.
by SQRT
23 Mar 2024 11:14
Forum: Taxing Situations
Topic: Record Keeping Practices: Scanned/Digital?
Replies: 31
Views: 918

Re: Record Keeping Practices: Scanned/Digital?

Bylo Selhi wrote: 21 Mar 2024 16:15
CRA wrote: Generally, you must keep originals of your paper documents. However, you can produce electronic images of these documents, known as imaging. The images can be kept in electronic files, on microfiche or on microfilm.
I interpret the bolded words to mean that 99.9% of the time they'll accept images. The 0.1% is wiggle room to play the paper card when the taxpayer gives them attitude, CRA suspects the image has been doctored or "enhanced," there's a total eclipse of the sun at the same time there's a blue moon, etc.
This may sound stupid, but how do you scan the images? Using a printer? Or a phone camera?
by SQRT
23 Mar 2024 11:06
Forum: Taxing Situations
Topic: Final Return: Document Mechanics
Replies: 7
Views: 187

Re: Final Return: Document Mechanics

Shante wrote: 23 Mar 2024 10:35 The traditional market price is the closing price of the share on the day in question. Just look it up for the date of death and print off a copy for your records.
Yes, that’s what I was thinking as well. I’m sure CRA would be happy with that.
by SQRT
22 Mar 2024 20:07
Forum: Retirement, Pensions and Peace of Mind
Topic: Blackrock whitepaper on spending in retirement
Replies: 45
Views: 2093

Re: Blackrock whitepaper on spending in retirement

I would think leaving real estate out of VPW is best practice unless you want to be forced on selling some at an inopportune time. I have never included such. I figure my heir will get a pretty good inheritance even if it’s only the real estate that’s left.
by SQRT
22 Mar 2024 10:46
Forum: Taxing Situations
Topic: New T3 requirements for joint accounts [that might be bare trusts]
Replies: 204
Views: 44291

Re: New T3 requirements for joint accounts [that might be bare trusts]

Schedule 15 (attached to T3 trust return) requires name, address, and SIN of the trust settlor, trustee, and beneficiary. Seems reasonable for such people to make this disclosure. If you don’t wish to, you shouldn’t have agreed to be a party to the trust?
by SQRT
22 Mar 2024 10:35
Forum: Retirement, Pensions and Peace of Mind
Topic: Blackrock whitepaper on spending in retirement
Replies: 45
Views: 2093

Re: Blackrock whitepaper on spending in retirement

When I see an old person driving a ridiculously expensive sports car my first thought is “oops that person didn’t spend enough in their early retirement and now they were forced to blow it in their later years” or “oops that person kept working too long they should have retired sooner so they would have had more years to spend their money” I sometimes think that as well. Funny how we make such assumptions. Old doesn’t have the same meaning it used to though. I used to think 70 was old. Not any more. Also, down here in Arizona there is a lot of wealth. I see Ferraris and Bentleys all the time parked outside their $10 million homes. These people just have a lot of money. I doubt retirement decisions had anything to do with them buying the ca...
by SQRT
21 Mar 2024 20:10
Forum: Taxing Situations
Topic: New T3 requirements for joint accounts [that might be bare trusts]
Replies: 204
Views: 44291

Re: New T3 requirements for joint accounts [that might be bare trusts]

This is my situation and I would appreciate some inputs. I am the executor for my sister's estate. Her only beneficiary is her MINOR daughter. Since her daughter is a minor, I cannot distribute the assets (property and bank account). Both are under the name Estate of Jane Doe. We file T3 returns for the estate account every year which includes rental income and interest income. My question is, now that there is this new filing requirement on bare trust, am I considered a bare trust? I do manage the 2 assets, but ultimately, it is not mine and will be turned over once the minor reaches 18. Do I need to apply for a T3 bare trust number and report this? If so, are these the correct reportable entities? Settlor: Estate of Jane Doe? Trustee: Me...
by SQRT
21 Mar 2024 12:56
Forum: Stocks, Bonds, ETFs, Funds, REITS and More
Topic: T+1 Settlement is Coming! On May 28, 2024
Replies: 58
Views: 2695

Re: T+1 Settlement is Coming! On May 28, 2024

Peculiar_Investor wrote: 21 Mar 2024 12:03

I'm not too worried about this as the positives of T+1 seem to me to outweigh the potential negatives. In the grand scheme of things having to potentially plan one day ahead when making trades is inconsequential in the long run.
Yes, for sure. Shall I say, FWF members can be very thorough in their discussion of the finer points. :rofl:
by SQRT
21 Mar 2024 10:37
Forum: Retirement, Pensions and Peace of Mind
Topic: Blackrock whitepaper on spending in retirement
Replies: 45
Views: 2093

Re: Blackrock whitepaper on spending in retirement

skinnyinvestor wrote: 20 Mar 2024 13:48

My inlaws are in their early 70s and used to travel quite a bit prior to COVID. Now, despite having the means to do so (health and money), they can't be bothered with the 'hassle' of travel.

Making 5x on their renewed GICs vs. the previous interest rate, and nothing material to spend it on.
Good problem to have, but also sad in a way.
Yes it certainly feels like more of a hassle to travel these days. Much more expensive too. Nevertheless, we (I’m 73 spouse is 66) are making a conscious effort to spend more on travel going forward. There are still a few places we would like to experience. In our case I certainly wouldn’t characterize this as sad. I guess, getting old can be viewed as “sad” but the alternative is worse.
by SQRT
19 Mar 2024 13:36
Forum: Taxing Situations
Topic: New T3 requirements for joint accounts [that might be bare trusts]
Replies: 204
Views: 44291

Re: New T3 requirements for joint accounts [that might be bare trusts]

I don’t “hate” CRA or the “government”. They are trying to “catch” tax cheats who hide their income offshore or in trusts. That’s fine by me. If this effort requires me to file an almost totally blank T3 I’m ok with this. Although, I don’t really understand why it’s required for such a reasonable objective. Agreed, I don't see how filing a T3 related to income already reported to CRA on T-slips is going to do anything about offshore accounts or trusts. CRA needs to say that joint accounts are off the table. Sure, there is illegal income splitting going on but that's a drop in the bucket. I can't find much evidence of headway being made on the Panama papers btw. How about some RICO legislation to catch organized crime worth billions? https:...
by SQRT
19 Mar 2024 12:55
Forum: Taxing Situations
Topic: New T3 requirements for joint accounts [that might be bare trusts]
Replies: 204
Views: 44291

Re: New T3 requirements for joint accounts [that might be bare trusts]

After reading Carrick’s article in the G&M on this topic. I went ahead and got a trust number. I guess I will file the GD thing when I go back to Canada next month. What a pain. Edit to add. In our case my wife and I totally manage her mother’s cash and investments through access to their joint accounts. My MIL really doesn’t do anything in these accounts although I believe she monitors them from time to time. My wife and my MIL both understand that these are my MIL’s assets. As I understand it, this does indeed sound like a bare trust situation to me. So I will file a T3 unless some other info comes to light in the next few weeks. Really no big deal. I don’t “hate” CRA or the “government”. They are trying to “catch” tax cheats who hid...