Legal Question in Wills and Trusts in Canada
houseing and wills
my ? is me and my wife are geting a house. after her dad is pass away in the will . and then the house is will to her and me. but he ask us if we would like to put the house in our name or on the deed now what would be the best way to do this. wait untill the will or put the house in our name now. and i would like to go the cheepes way if i could thank s for you time . like to know this so i dont have to pay lots of taxs. on the house so what way should i go thanks you
1 Answer from Attorneys
Re: houseing and wills
If the father is living in the house now, that is if it is his principle residence, then if the house and surrounding land is not more than 1 acre, the house is not taxable. This is called the principle residence exemption. So you would not have to worry about paying tax on the transfer. If the house is a rental property with an inherent capital gain, then it does not matter if it is transferred now or later, the transfer will still give rise to a tax liability, which could be offset with losses if any are available.
From a probate perspective, it is less expensive to transfer property into joint tenancy now and then the survivors get the title. Otherwise a grant of probate or administration is necessary to transfer title which will cost a lost more.
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