In the past couple of years, some of your clients may have started dabbling in cryptocurrency, a blockchain-based digital asset that has become popular with certain investors, although less so recently, given the price volatility that’s been experienced in the past few months.

While clients are likely aware that the sale of crypto needs to be declared for tax purposes, many may not realize that cryptocurrency might also be considered foreign property, which may necessitate annual reporting if the clients’ total cost of all foreign property exceeds $100,000 at any point in a tax year. If so, clients are required to file Form T1135. The penalty for filing late is $25 per day to a maximum of $2,500, plus arrears interest[..] Read more

With increasing frequency, the death of a parent has resulted in acrimony and legal proceedings involving the surviving adult children. Many of these disputes are the result of the parent transferring property to one child while alive, without the knowledge of the other children. More recently, such disputes have also resulted from a parent designating one adult child as the beneficiary under a registered plan or life insurance policy, to the exclusion of other family members. The children disputing the gift or beneficiary designation typically rely on the presumption of resulting trust as a legal sword to claw back the gift into the estate, for distribution to all beneficiaries under the deceased’s will.[..] Read more