Estate Planning under the New Legislation


  • Frank Jones



The withdrawal by Federal Government from the estate tax field and the fact that Alberta does not levy Succession Duties or Gift Tax, do not mean that estate planning has ceased to be vital. In this article Professor Jones out lines some effects of the new Income Tax Act in regard to taxes which become exigible upon death. Particular emphasis is placed on the effect of section 70 on the disposition of capital gains and the new concept relating to valuation contained in section 164(6). In addition, the article discusses several techniques to minimize or reduce taxes payable, such as the estate "freeze", the tax-free "roll-over"for property passing to spouse, the transfer of non-capital assets to beneficiaries, the importance of assets being situated in Alberta, the usefulness of the corporate "freeze" and the lawyer's role in the "evaluation of assets" process.