tag:blogger.com,1999:blog-4402283548766807872.post6183255944236748933..comments2024-03-14T19:35:14.456-04:00Comments on The Blunt Bean Counter: Private Corporations - Using a Family Trust to Fund University CostsThe Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-4402283548766807872.post-1287552046512823732013-01-30T17:01:22.203-05:002013-01-30T17:01:22.203-05:00Hi Anon:
The reality is that many accountants for...Hi Anon:<br /><br />The reality is that many accountants for family trusts such as yours that are not complicated or asset heavy do not prepare financial statements. They just report the income on the T3 trust return,as F/S are not required.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-1507914064026355882013-01-30T15:45:28.189-05:002013-01-30T15:45:28.189-05:00Hi, your post on family trusts for funding educati...Hi, your post on family trusts for funding education costs was great. I set up a family trust last year to hold a personal business' shares (in hopes of one day multiplying the capital gains deduction). Problem is: now there is accounting and financial statements to do. Could you do a post kind of showing the balance sheet and income statement for a simple family trust that only contains cash and an investment in a private corporation? I am having trouble figuring out how the equity part of the b/s should look and the reporting of the distributions to beneficiaries, net surplus/deficit, showing the dividend income from corporation and the dividend allocation/distribution, etc.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-56254048790571921112012-11-22T00:11:43.422-05:002012-11-22T00:11:43.422-05:00JJ,
Good question. I would suggest that if your c...JJ,<br /><br />Good question. I would suggest that if your children are shareholders or you make them so just before they turn 18 (speak to your accountant), then keeping the money in your corp is better,since you can pay them approx $40k in dividends a year tax free, although I would have to run numbers to confirm my suspicion. I never ran numbers, since I used a combination of both RESP and corp funds, as i had already started a RESP years ago.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-79602959402951905252012-11-21T07:41:20.795-05:002012-11-21T07:41:20.795-05:00Hi, I'm also medical (actually dental) profess...Hi, I'm also medical (actually dental) professional with a Prof. Corp. and I am considering this. I am already leaving excess funds inside my corp and am wondering if that is the ideal place to save for my children's education... Do you think that leaving the funds in the corp and taking them out as dividends once the kids reach 18 outweighs the 20% grand on RESP's?<br /><br />Both myself and my spouse are in the highest tax brackets...JJCorhttps://www.blogger.com/profile/11540762298450835771noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-51918377570133831342012-09-04T17:50:45.225-04:002012-09-04T17:50:45.225-04:00Anon, I will keep in mind as a future topic.
If y...Anon, I will keep in mind as a future topic.<br /><br />If you email me, see contact me just higher up on the right side I can send you an incorporation analysis prepared by my partner Aaron Schechter who specializes in medical PC's or I can arrange a discussion with him.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-91382243084059980332012-09-04T16:46:49.809-04:002012-09-04T16:46:49.809-04:00Any chance you could write a post about profession...Any chance you could write a post about professional corporations (medical, dental, etc)? My wife and I are trying to decide whether we should have her incorporate or not. She is a physician in Ontario. I am not in the medical field but I am in the top tax bracket, thus would not benefit from receiving dividends. We have 3 children, but the oldest is only 6, so would not beneift from them receiving dividends. We have just paid off our mortgage and all other debts, and have our RRSP & TFSAs maxed out, so there is potential to start leaving excess funds within a corporate structure.Anonymousnoreply@blogger.com