Insights

The practice of law is changing every day, and the effect of changing legislature on businesses is significant. We write about recent developments in the world of tax & business law, keeping a watchful eye on the changing landscape for our clients. See what we’re thinking about, and what your business should be looking out for.

  • Dennis Headshot 1 (1)By Dennis L. Nerland, QCSeptember 06 2017
    Tax LawFamily Limited Partnerships

    A Family Limited Partnership (FLP) is nothing more than a limited partnership, created as a vehicle to transfer income and title to assets from the family head to other family member, rather than to a non-family business associate. When the owner of a business is in a high income tax bracket, this transfer can drastically reduce any personal liability and taxes.

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  • Dennis Headshot 1 (1)By Dennis L. Nerland, QCAugust 30 2017
    Tax LawThe Limited Partnership Protective Shield

    In contrast to a general partnership, a limited partnership must by law be composed of at least one general partner, who serves as the managing partner, and one or more limited partners. Provincial legislation sets out the general rights and responsibilities of the limited and general partners between themselves, the public, and all other individuals with whom they have business dealings. This law protects the limited partners from the broader liability of a general partner – unless the limited partner actually takes an active part in management and control of the business. It further gives the limited partners full rights and access to all partnership information, as well as guaranteeing the limited partners their share of profits or other compensation by way of regular income payment.

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  • Dennis Headshot 1 (1)By Dennis L. Nerland, QCAugust 23 2017
    Tax LawGeneral Partnerships

    Family limited partnerships offer tax benefits, lawsuit protection, and financial control.

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  • Dennis Headshot 1 (1)By Dennis L. Nerland, QCAugust 16 2017
    Tax LawThe Prescribed Rate Loan Strategy

    You might wish to consider using an irrevocable inter vivos trust to implement a prescribed rate loan structure. This strategy can facilitate income splitting by taking advantage of the marginal tax rate of family members with a lower income.

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  • Dennis Headshot 1 (1)By Dennis L. Nerland, QCAugust 09 2017
    Tax LawIrrevocable Inter Vivos Trusts

    The settlor who wishes to avoid the pitfalls inherent in a revocable inter vivos trust should create an irrevocable inter vivos trust. An irrevocable trust denies a settlor all but indirect control over assets settled on the trust from the moment the trust is created. For this reason, as a scheme for protections against creditor attack or attachment, the irrevocable trust is virtually perfect. The settlor no longer holds the title to the property once it’s settled on the trust, and neither does he or she have any way to reacquire the settled property.

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  • Dennis Headshot 1 (1)By Dennis L. Nerland, QCAugust 02 2017
    Tax LawRevocable Inter Vivos Trusts

    What are the principal differences between a living (inter vivos) trust and a testamentary trust created by death? A living trust is just what the term implies, a trust created while the settlor is alive. Also known in lawyer Latin as an inter vivos trust (“between the living”), such trusts come in two basic forms – revocable and irrevocable. Because the form you choose has a significant impact on trust operation and asset protection, it’s imperative you understand the consequences of each choice before opting for one over the other.

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