Cielo condos. How can Canada pass on real estate to its children? With the passage of time, the first batch of new immigrants from the mainland will slowly face the reality of retirement and adult children, and the first generation of immigrants who have no relatives in Canada are faced with the problem of how to pass on the assets they have accumulated over the years to their children.Please Visit: Cielo condos to Get Your VVIP Registration Today!
For most new immigrants, the biggest asset is real estate, especially in Canada, where house prices have grown rapidly in recent years. Houses that used to be inconspicuous have easily become millions of legacies. In the eyes of most Chinese, the huge property of real estate, parents are always used to leaving it to their children as some kind of protection.
Looking back at the time of buying a house, the children of the new generation of immigrants were still young, and the names of the property were basically registered in the names of both husband and wife. More than ten years have passed, many families have undergone great changes, some are divorced and some are widowed, and the children are gradually growing up. Therefore, even in families where both husband and wife are present, it is only natural that many families regard their children as the only heirs to the property. However, the child’s name was not previously on the property registration documents, this wishful inheritance encountered a new problem, the need to pay disguised estate tax: probate fees.
For new immigrant couples who choose to register by way of joint property rights, their children are very young when they buy a house, and they have not carefully considered many things in the future at all, so the names of their children are generally not on the housing property rights registration documents. Once both husband and wife die, property and other assets will be regarded as bequeathed to their children, and estate duty is inevitable.
Traditionally, husband and wife should inherit each other in a will. But with the development of society, this tradition is also changing. Zhou Yi said that according to his experience, the relationship between husband and wife of the current generation of people aged 7 or 80 is still very strong, and the inheritance is often left to each other in wills. But it is popular for modern people to sign agreements before marriage to distinguish their pre-marital property, and even do not want to leave their property to each other after their own death. Especially for those who remarry with children, they have a stronger relationship with their children, and the relationship between remarried couples is more like a partner, and the heirs are often their own children.
First, sell your house to your children at a low price.
Parents sell their houses to their children at a low price, which is tantamount to transferring the house to their children without paying tax, but the disadvantages are also obvious. According to Canadian regulations, if the property is the parents’ main residence, the value-added part does not have to pay tax.
However, if the housing is sold to the children at a low price, the tax burden of the value-added part will be handed over to the children. In the case of high value-added real estate, this disadvantage is particularly prominent.
Second, sell a house for cash.
Parents can consider selling the property at the Canadian market price, and then buy a small property for their own occupation, and give the rest of the cash as a gift to their children, who will use the money to buy another house. This form is more complex, but the advantage is flexibility, and children do not have to pay taxes.
However, this form is not applicable if parents want to transfer their existing self-housing to their children.
Third, the real estate “add name”, automatic inheritance.
Generally speaking, the husband and wife are the owners of Canadian property. After the death of one party, the house is automatically transferred to the living party without probate. At this time, the other party alive can add the name of the child to the column of “owner of the house”. In the future, the child can inherit the house naturally without having to pay taxes. This method has the lowest cost and the simplest procedure. However, it should still be noted that after “adding the name”, the children also become the owners of the house and have the right to dispose of the house. If parents want to buy or sell a house or mortgage in the future, they need the consent of their children.
IV. Testamentary succession.
Parents can make a will as early as possible to declare that the property will be left directly to their children, so as to prevent children from dividing the family property before their parents’ death and maximize the protection of their parents’ livelihood. But the deficiency of this approach is that children have to pay taxes. In theory, Canada has no inheritance tax, death tax and inheritance tax, but this does not mean that the estate can be inherited completely. There are two main taxes and fees related to estate disposal in Canada, one is the income tax paid by the deceased for the last time, and the other is probate tax.
Probate tax ((probate fee, probate taxes) means that once a person with a will dies, his will (will) has the legal effect to deal with his estate (estate). Although the executor (executor) has the legal right to deal with the estate according to the will, when transferring assets such as investment and real estate, the will usually needs to be verified by the court (court verification). And verification is subject to a fee. The usual standard is that the estate will only be collected at more than 25000 yuan, 14000, 2 million yuan 28000 for every 1 million yuan, and so on. This fee is deducted before the deceased’s last tax payment before the income tax return can be made.
Many parents worry that when their children get married, these assets will become matrimonial property, and if the child divorces, they will lose this part of the property. Lawyers advise children to notarize their property before marriage, sign prenuptial agreements, and avoid using their parents’ estate as marriage housing (young couples can buy another marriage house) to preserve their premarital assets.
If the inheritance room must be regarded as the marriage room for the children, the real estate does not have the other party’s name and can only share the value-added part of the house after marriage. Therefore, Zhou Yi stressed that marriage date and separation date are two very important days in marriage, although it may seem less romantic or even cruel, it is a necessary step to protect premarital assets. He believes that if the next generation has similar family conditions, I believe that both sides will not feel anything wrong with this, and there is still some truth in the old saying that there is a perfect match.