‘Simple’ or ‘I love you’ wills are normally a relatively straightforward document and traditionally provide for assets to be gifted directly to a surviving spouse and then if not to the children of the relationship on them reaching a certain age (e.g. 18, 21 or 25).
One issue that often comes up in relation to this type of will is whether the ‘excepted trust income provisions’ under the Tax Act can be accessed. These provisions allow children to be taxed at adult rates for income distributed to them via a deceased estate.
In very broad terms, the excepted trust income provisions can only be accessed via this type of will during the period that the infant children of the deceased (and, in particular, not grandchildren) remain under the age of 18.
Next week’s post will explore some of the difficulties with this type of will as compared to more comprehensive testamentary trust arrangements.
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** For the trainspotters, the title of today's post is riffed from the Rolling Stones song ‘Shine a light’.
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