Ontario courts carefully scrutinize gifts and gratuitous transfers between parents and adult children using the presumption of resulting trust established in Pecore v. Pecore. This blog explains the key legal principles, highlights recent decisions like Balkisson v. Sandy and Doherty v. Doherty, and shows why documenting intent, structuring joint ownership properly, and reviewing beneficiary designations are essential steps in a modern Ontario estate plan.
Section 85 and Section 86 rollovers are essential Income Tax Act tools that let Canadian taxpayers transfer property or exchange shares without immediate capital gains tax. Ideal for incorporating sole proprietorships, estate freezes, or corporate reorganizations, these strategies preserve value through tax deferral while meeting CRA rules like T2057 filings.
The Patent Cooperation Treaty (PCT) is a key tool for Canadian applicants who want to protect inventions beyond Canada without immediately filing in dozens of countries. By filing one international application through CIPO or WIPO, innovators secure a single priority date, receive an international search and written opinion, and gain up to 30 months before deciding where to pursue full patent rights, including in Canada’s own national phase.
Double taxation erodes Canadian estates when private company shares trigger capital gains at death followed by dividend taxes on distributions. This guide explains the problem with real examples and outlines CRA-approved solutions like pipeline plans—transferring shares to a NewCo for promissory note repayment—and expanded loss carryback rules allowing offsets up to three years post-death.
Incorporating a Canadian sole proprietorship can trigger immediate tax on assets like equipment, inventory, and goodwill, but a Section 85 rollover allows owners to transfer these assets into a corporation on a tax-deferred basis. This example walks through how a rollover works, the T2057 election, and the main benefits and trade-offs so business owners can incorporate more efficiently under the Income Tax Act of Canada.
Estate planning for blended families in Ontario requires careful attention to wills, trusts, and beneficiary designations to ensure everyone—current spouse, children, and stepchildren—is protected. Learn how to balance interests, avoid legal conflicts, and create a clear, fair plan that minimizes the risk of accidental disinheritance or family disputes.
Distinctiveness is a cornerstone of Canadian trademark law, defining whether a mark can identify your business and differentiate it from others. Explore the foundational elements of distinctiveness, why common terms or descriptive names are rejected, and how unique branding and acquired reputation can help secure your trademark registration.
An estate freeze is a powerful planning tool for Ontario business owners who want to secure the current value of their company and pass future growth to family or successors. This guide explains the estate freeze process—from valuation and share reorganization to family trust setup and tax planning—helping you retain control and maximize tax benefits for your heirs.
Section 84.1 of the Income Tax Act can turn a tax-efficient business transaction into a fully taxable event. This article shows business owners and advisors how to avoid common pitfalls, outlining practical steps to structure share sales, family transfers, and business exits so you remain compliant and minimize costly tax consequences.
When selling a business in Ontario, one of the first decisions owners face is whether to structure the deal as an asset sale or a share sale. Each approach comes with distinct legal, tax, and practical considerations that affect both the buyer and the seller. This guide breaks down the key differences, advantages, and drawbacks of each option—and how to decide which structure best suits your goals.
Carson Law is excited to announce the launch of the CRS Law Collective—a new client-focused collaboration with our long-time colleagues. While Carson Law remains an independent firm, this collective brings together experience and resources to better serve our clients. Learn more about what this means for you in our full announcement.
Vendor take-back (VTB) mortgages are rapidly gaining popularity in Ontario as traditional lenders tighten mortgage approvals. This seller-financed option helps buyers bridge financing gaps while allowing sellers to earn steady income from their property equity. Learn how VTBs work, their benefits for both parties, and why Realtors should be aware of this growing trend in today’s real estate market.
Navigating the HST rules for farmland sales in Ontario can be tricky. While generally taxable, exemptions exist for sales to related individuals, farming business transfers, and when a residence is included. To clarify your specific situation, consider requesting an advance ruling from the CRA. Contact Carson Law for expert guidance.
Selling farmland involves navigating complex Harmonized Sales Tax (HST) implications. When farmland includes a principal residence, the sale is treated as two separate transactions: the sale of the residence itself is not subject to HST, while the remaining acreage could be. If the land was used as a hobby farm, no HST applies to that portion. However, if the land has been leased to a third party for farming, the sale will be subject to HST, as leasing is considered a business activity. Understanding these nuances is essential, and consulting a tax professional is recommended for personalized guidance.
Incorporating your business can be a game-changer for entrepreneurs looking to protect and grow their ventures. This strategic move offers numerous benefits, including shielding personal assets from business liabilities, potential tax advantages, and easier access to capital. Incorporation also enhances business credibility, ensures continuity, and provides flexibility in ownership structure. While the process may seem complex, the long-term advantages of incorporation often far outweigh the initial effort, making it a valuable consideration for business owners seeking to secure their future success.
Estate planning is essential for everyone, ensuring your assets are distributed according to your wishes after you're gone. Key steps include creating an asset inventory, considering family needs, and establishing clear directives. Understanding tax laws and seeking professional guidance can enhance your plan. Regular communication with family members and periodic reassessment are also crucial. By following these steps, you can protect your legacy and provide for your loved ones.
A family trust and a testamentary trust serve different purposes and are established at different times. A family trust, or living trust, is created while the settlor is alive, allowing them to benefit from it during their lifetime and providing flexibility in managing assets while typically avoiding probate. In contrast, a testamentary trust is established after the death of the will maker and provides benefits to the beneficiaries named in the will, with no benefits to the settlor during their lifetime.
A cohabitation agreement is an agreement signed by two unmarried individuals who are living together or intend to live together in the future. When a couple decides to live together, a cohabitation agreement can clearly set out the rights and obligations of each party, either in the event of a breakdown of the relationship or upon the passing of one of the partners.
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