Court making order to change assignment to designated trustee to manage funds on daughter's behalf
Estates and Trusts – ESTATES - Dependants' relief legislation
Adult daughter of deceased brought successful application for dependent's relief, and was awarded one-half of pre-retirement death benefit through RRSP rollover. Rollover would have caused daughter to become ineligible for disability benefits, would have exceeded Registered Disability Savings Plan contribution limit, and made her ineligible for annual grants. Daughter brought application for variation of order. Application granted. Will created Henson trust, which allowed for beneficiary to retain entitlement to government benefits while simultaneously deriving funds from trust at trustee's discretion. However, payment of gross sum of $185,000 into trust would require deceased's wife to withdraw $260,000 from registered funds. Court could make order to change assignment to designated trustee to manage funds on daughter's behalf. Parties were to obtain tax advice to determine best course of action.
Cotnam v. Rousseau (2018), 2018 CarswellOnt 22806, 2018 ONSC 7539, C.F. de Sa J. (Ont. S.C.J.); additional reasons (2018), 2018 CarswellOnt 69, 2018 ONSC 216, C.F. de Sa J. (Ont. S.C.J.).
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