March 2009 Newsletter    What to do with Losses in a Trust    Prescribed Rates for the Third Quarter of 2009 What to do with Losses in a Trust - Charles Rotenberg The downturn in the markets will pose problems as family trusts file their 2008 T3 Returns, which are due on or before March 31st, 2009. Most family trusts are discretionary as to both income and capital. But, since an inter vivos trust (one set up during one’s life, rather than in a Will) pays tax at the top marginal tax rate without the benefit of personal credits, it is generally not a good plan to accumulate income within a trust. Accordingly, income is usually distributed to the income beneficiaries on an annual basis. Therein lies the rub. More... Prescribed Rates for the Third Quarter of 2009 - Charles Rotenberg The prescribed rate for income tax purposes changes on a quarterly basis. For the third quarter of 2009, the rate will stay at 1%, the lowest it has ever been. Please see our March 2009 Newsletter for a more detailed discussion about the planning opportunities that this offers. More... You are receiving this e-mail because you have subscribed to one of our Drache LLP newsletters. You have complete control to review, update your newsletter options or unsubscribe at your discretion. If this email was forwarded to you, we invite you to subscribe to this newsletter or others that appeal to you. Your subscription information is private, please feel free to review our privacy policy. © Drache LLP Barristers & Solicitors, 222 Somerset St. W., 2nd Floor, Ottawa, Ontario K2P 2G3 Phone: (613) 233-2675 Facsimile: (613) 233-6752 Email: crotenberg@drache.com