Expenses incurred for purely cosmetic procedures are not qualify for medical expense tax credit after March 4, 2010. This generally includes surgical and non-surgical procedures purely aimed at enhancing one’s appearance.
A preferred beneficiary is a person resident in Canada who is a beneficiary under the trust at the end of the year, and who meets one of the following conditions:
A will is a legally enforceable documents that declares the intentions about disposal and administration of the testor’s estate after his or her death. It is effective only at death and can be revoked at any time before death.
Beneficiary includes the person for whose benefit the trust is created, the person to whom the amount of an insurance policy or annuity is payable, or the unit holder of a mutual fund trust.
A settlor generally means the person who set up a trust by contributing property to the trust. In the case of a preferred beneficiary election, a settlor is restricted to a person who is otherwise the settlor of the trust and has contributed the majority of property to the trust.
There are two basic types of trust: inter vivos trust and testamentary trust. Inter vivos trust must have a December 31 year end. However, a testamentary trust can have a fiscal year end other than December 31.
An inter vivos trust is a trust set up by a living person. An inter vivos trust is not a testamentary trust.
A testamentary trust is a trust or estate that is generally created on the day a person dies. All testamentary trusts are personal trusts. The terms of the trust are established by the will or by court order in relation to the deceased individual’s estate under provincial or territorial law.
A trust is a binding obligation enforceable by law when undertaken. It may be created by one of the following:
A trustee is an individual or trust institution that holds legal title to property in trust for the benefit of the trust beneficiaries. The trustee includes an executor, administrator, assignee, receiver, or liquidator who owns or controls property for some other person.