In this week's edition

The big news this week was a big disappointment to many: Changes to the capital gains inclusion rate will proceed pretty much as announced in April when the federal budget dropped. The government did provide graduated rate estates and qualified disability trusts with access to the annual $250,000 threshold below which the CGIR will remain 50%. And capital gains realized in a trust ahead of June 25 can be distributed to beneficiaries on or after June 25, allowing beneficiaries to use their individual $250,000 threshold amounts. Those two developments, at least, were welcome news.

Ontario’s top court has upheld a ruling ordering a portfolio manager to pay $90,000 to a former colleague to purchase his book of business, despite there being no formal written, signed contract. The offer to purchase was sent via email, without cross-referencing earlier discussed conditions. The lesson: Put pen to paper to avoid any fallout from a more casual agreement.

The latest edition of our partnering series focuses on advisors and accountants. The featured professionals share the benefits of their relationship, including improved client outcomes and client retention. Another benefit is the quality of referrals that advisors can receive from accountants. As associate portfolio manager Rod Burylo elegantly puts it, those referrals are “friggin’ awesome.”

A pour-over trust clause in a will is used when a testator created a trust during their lifetime and at death wants to capture assets that did not — whether intentionally or unintentionally — form part of the trust. But, as columnist Alyssa Mitha explains, caution with these clauses is warranted when trusts are revocable.

Last week’s newsletter discussed total cost reporting, and an insurance-licensed advisor wrote to share his discussion process, which includes breaking down costs for better client comprehension and product comparisons. His comments also referenced an industry challenge: serving smaller clients. Those clients get declined service and feel rejected, he said. Is the little guy relegated to going it alone? Going to the bank? What’s your experience serving smaller clients? Let me know in an email.