Joseph lives with his wife in Quebec. He is 67 years old and is retired. His income in 2022 is $97,000 and he is concerned about the Old Age Security (OAS) pension claw-back when he files his 2022 tax return next week. Joseph knows that in 2022, if his income exceeds the threshold amount of $81,761, he has to repay part or all of his OAS pension on his tax return. This could result in a very large lump sum to repay. Joseph also knows that the formula for the OAS claw-back or repayment calculation is based on the difference between his income and the threshold amount for the year with a 15% repayment on that differential.

a) If Joseph’s Old Age Security annual pension for 2022 was $7,700, calculate the net OAS amount that he will get to keep after the OAS repayment? (1 mark)

Joseph’s calculation:

b) Joseph’s wife, Miley is very ill. If Miley dies intestate, what does that mean?

c) Joseph has a handwritten Will which leaves everything to Miley. Caring for Miley has been very stressful with Joseph recently being sent to the hospital for a mild heart attack. Their two adult children are concerned with their parents’ lack of estate planning. What two types of Will would you recommend that Joseph and Miley obtain and why?

Answer rating: 100% (QA)

a To calculate the net OAS amount that Joseph will get to keep after the OAS repayment we need to determine the amount he will have to repay based on ... View the full answer