Taking over the parents house

[Gong Show]

Being on title and beneficial ownership are different things.

This is one of those topics you really need to sit down and discuss with Estate Lawyer and Estate Planning accountant.

True dat.

If you are planning on living there after his death, the length of time the file sits in probate does not matter.
Beneficiaries generally want a quick probate so they can sell the house and receive their filthy lucre. (I kid, mostly)
As previously mentioned, capital gains are taxed at a much higher rate than probate tax.

There are other issues, like deferred taxes etc.
Every one of these situations is unique and that is why you need professional advice on your specific situation.

But hey, my free advice is worth every penny paid for it!!

 

[ab1752]

We did it as Mom was terminal, and it was done for probate purposes. You need legal advice to prepare the documents and notarize the signature. But there are 10,000 different elements to this conversation and everyone's situation is different so you should seek legal and financial advice for your unique situation.

In our case, her estate was going to be somewhat complex so she knew this would make life a bit easier. It also created a day 1 ACB for the heirs so the capital gains clock started to tick. We also did the same with the investment accounts but that was a different scenario as that event becomes a deemed disposition triggering capital gains, which would have been inevitable. In her case, this just made life way easier for the executor, and heir.

 

[leaseman]

I wonder if you would incur Capital gain tax on the value prior to your Dads passing if you sell?

It has been several years since Dad passed. From what I was told (IIRC) that with his passing, the title gets transfered to me.

I have been the executor several times so far, family and friends and for all except one, it has been very simple. The hard one made up for the easy...

I would not do the executor again if there was funds left charities. These seem to be a poop show and I would leave these to lawyers.

 

[Gong Show]

It has been several years since Dad passed. From what I was told (IIRC) that with his passing, the title gets transfered to me.

I have been the executor several times so far, family and friends and for all except one, it has been very simple. The hard one made up for the easy...

I would not do the executor again if there was funds left charities. These seem to be a poop show and I would leave these to lawyers.

Yes, that is absolutely correct. For some reasons charities are extreme hardasses when it comes to people leaving them money in their estate. They will question and fight reasonable executor fees and all sorts of other delightful speed bumps.

 

[Sitkaspruce]

Thanks all

I have mom talking to an estate lawyer next week. Will make sure it is all documented etc.

I (we) are now dealing with another family issue and will deal with the house issue when I get back.

If there is one thing I can't recommend enough is that for all of you who have not had the "Talk" (and I don't mean the birds and the bees) with your aging parents about getting their accounts in order, do it before it is too late.

We are dealing with this right now; it was sudden and there was no plans in place.

Oh and Death is expensive for the family and a licence to print money for those who look after it!!

Cheers

SS

 

[terrin]

Oh and Death is expensive for the family and a licence to print money for those who look after it!!
That is very true.
A bloodthirsty industry at your weakest moments.

 

[wayne.mck]

Interesting article posted on Facebook by my lawyer.


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Estate Planning & Risks of Joint Tenancy​

BLOG, CONFLICTS, HOMEOWNER LIABILITY, PROPERTY, TRUSTS AND ESTATES LAW

Estate Planning – Considerations when Adding a Child as Joint Tenant to your Property​

Many parents put their children on title to their residence as a form of estate planning. While this can help avoid probate fees and possibly assist with ease of administration of an estate, the case of Gully v. Gully, 2018 BCSC 1590 [Gully], demonstrates that parents must be careful when adding children onto title to their residence.
In Gully, a mother added her son as a joint tenant on title to her Burnaby property. She did so based on legal advice she received, including that her estate could avoid probate fees. She did not tell her son that he had been added as a joint tenant to title of the property.
In August of 2017, the son, and his company, consented to a judgment of $800,000.00 in favour of Ledcor Construction Limited (“Ledcor”). Ledcor discovered that the son was on title to the property and registered their certificate of judgment on the son’s undivided half interest in the property.
The mother sought a declaration, amongst other things, that the son held the property on a resulting trust for her estate. The court found that the son did not hold the property on a resulting trust for the estate and permitted Ledcor to retain their judgment on title, ultimately stating:
[24] Ms. Gully took a risk in registering her son as a joint tenant on her property. Whether she was properly advised of that risk is not before me. However, once she made the decision to register an interest in the Burnaby Property in Mr. Gully’s name, third party creditors of Mr. Gully became entitled to register judgments against Mr. Gully’s interest in the Burnaby property.
If you would like to book an appointment with any of our estate planning lawyers, please contact Heath Law LLP at
250-753-2202 or TOLL FREE: 1-866-753-2202.
JANUARY 24, 2019/BY HEATH LAW, NANAIMO LAWYERSTAGS: ESTATE LAW, INHERITANCE ASSETS, JOINT TENANCY, PROPERTY

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