CPABC in Focus July/August 2015 | Page 27

kmlmtz66/iStock/Thinkstock Implications of the new rules To illustrate the effect of some of these changes, consider an example where an individual (“John Doe”) dies holding the following: •  n RRIF worth $500,000, with a charity designated as a A beneficiary; •  50,000 in shares of a public company (“ABC Co.”), with an $ adjusted cost base of nil, to be donated to charity; •  1,000,000 in shares of a wholly owned private holding company $ (“XYZ Co.”). The adjusted cost base and paid-up capital of these shares is nil; and •  n alter-ego trust (AET) with his children named as A beneficiaries. This AET holds all of his other assets, some of which have accrued capital gains. The GRE As John’s will creates only one estate, this estate would be designated as the GRE. The RRIF The gift of publicly listed securities The gift of the $500,000 RRIF is deemed to have been made by the Here again, the executor has the flexibility of choosing whether to claim GRE, and John’s executor has the flexibility to choose whether to the $50,000 gift on John’s terminal return, on his prior-year return, or claim the gift on John’s terminal return, on his prior-year return, or Right-hand page ad on his GRE’s return. on his GRE’s return. A comprehensive education program designed especially for you In the world of corporate finance, knowledge and experience are power. That’s why we have designed a comprehensive and flexible suite of corporate finance courses. CORPORATE FINANCE COURSES 2015 Take one course in a specific area, or enrol in the entire suite of courses—it’s your choice. Earn the prestigious CF qualification by taking the Advanced CF Course and its related assessment. Debt and Equity in Corporate Finance * October 22-23, 2015 Vancouver, BC Morris J Wosk Centre for Dialogue Advanced Corporate Finance Course October 28-30, 2015 and December 7-9, 2015 Toronto, ON CPA Canada offices Valuation in Corporate Finance * November 23-24, 2015 Vancouver, BC Morris J Wosk Centre for Dialogue Governance, Ethical and Regulatory Issues in Corporate Finance Elearning—available online now RegisteR now: Corporate Finance Assessment December 10, 2015 Toronto, ON CPA Canada offices cpacanada.ca/CorporateFinance added Bonus: enrol in any of these courses and automatically gain access to six Corporate Finance elearning Courses * These courses are also available in Calgary, Toronto and Montreal. See www.cpacanada.ca/CorporateFinance for more details. CPABC in Focus • July/August 2015  27 CPA-BC_InFoMag_CorpFin_JA15.indd 1 2015-06-15 3:41 PM