December 7, 2011 – Changes to the Canada Pension Plan scheduled for January 1, 2012 may come as a surprise for some semi-retired Canadians. Up until now, once you began receiving your CPP retirement pension, you were no longer required (or allowed) to contribute to the CPP. As of January 1, that’s changing.
Many of us consider a Power of Attorney (or “POA”) document essential to the estate plan. The document is utilized while the donor (or “grantor”) of the power is alive and usually incapacitated. The POA is distinguishable from a will, which takes effect on death. The question often arises as to what extent a person named in a POA (the “attorney”) can engage in estate planning on behalf of the donor of the power.
Canadian residents age 65 and older will receipt the Old Age Security pension if they have made application to receive the benefit and their income is under prescribed thresholds. The maximum pension is $537.97 for each month in the fourth quarter in 2011: October, November and December (an increase of $4.27 per month from the previous quarter).
Year End Planning: Reduce OAS Clawback with T1213 (OAS)
Cash-strapped seniors suffering from prolonged low interest environment will want to ensure that cash flow is supplemented from guaranteed sources like the Old Age Security. If a clawback based on prior year income levels is part of the equation, we can help by applying for a reduction in this recovery tax using a newly updated form T1213.