Category: Resulting Trust
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Transferring Property to a Child in Canada: What It Costs and How to Do It Right
Quick answer: In Canada, giving property to your child is not tax-free. The CRA treats the transfer as a sale at fair market value, so capital gains tax can apply even when no money changes hands. Land transfer tax and legal fees can also apply. A principal residence exemption may cover the family home, but […]
Resulting Trust for the Purposes of Creditors but Not Family Members?
Delving into the intricacies of estate planning in BC, one cannot ignore the prevalence of joint tenancy. Imagine a scenario where a parent, during their lifetime, gifts an interest in their property to their adult child, a strategy employed to bypass probate processes and fees after their demise. They register the property in joint tenancy […]
Assets Transferred from Mom to Daughter Challenged After Mom’s Death
It is common for a parent to leave a will dividing their estate equally among their children. That was the case in Simard v. Simard Estate, 2021 BCSC 1836, where a mother’s will left the residue of her estate to be divided equally among her four adult children. The problem? Almost all of the mother’s […]
BC Mom Who Transferred Property to Kids to Avoid Creditors Not Allowed to Reclaim It
Property transfers between parent and adult child are quite common. A parent may transfer property to an adult child for estate planning purposes or simply because a parent wants to make a gift to their child. Transfers for such purposes are not objectionable—though they can create unexpected problems. What is objectionable is transferring property to […]
Disinherited Second Wife’s Lawsuit Against Her Stepchildren Dismissed
Transferring property into joint tenancy for estate planning purposes often leads to family disputes and in some cases, litigation. For example, a parent may add their adult child as joint tenant on title to real property or include their child as a joint bank account holder. This may be done to avoid probate fees and […]
Legal Presumption Determines Outcome of BC Estate Dispute Among Siblings
A recent BC estate dispute between a brother and sister over their father’s estate demonstrates the importance of proving intention when it comes to gifts of property made to a child during a parent’s lifetime. In Pavlovich v. Danilovic, 2020 BCCA 239 the brother said that his father intended to give him two properties as […]
Using Joint Tenancy as a Device for Estate Planning May Lead to Litigation
Vancouver estate lawyers often use joint tenancy as a form of estate planning in BC, particularly within a family context between parents and children. However, as reams of Vancouver litigation demonstrate, joint tenancy as an estate planning device can create unexpected problems, particularly when the interests of people or entities outside the family context are […]
Dividing an Estate: Gift During Lifetime of Parent to Adult Child
When dividing an estate in BC, it is essential to determine what property of the will-maker forms part of the estate. If a will-maker made a valid gift of property during his or her lifetime, that property does not fall into the estate and the terms of the will do not apply to it. This […]