4/12/2023 0 Comments Adding copyright kid3So, adding your names increases the legal fees payable. If the property just stayed in your parents’ names the whole time, legal fees would only be payable once. When the second of your parents die and the house is sold, that will require legal fees a second time. So, adding your names potentially increases the family tax payable.Īdding your names also requires the assistance of a lawyer to change title on the property. If you and your sisters are added on title and you own your own homes, the increase in value may not be tax-free and some capital gains tax may be payable. There may therefore be no income tax payable on their death. If Mom and Dad own the house until they die, if they both aren’t otherwise living somewhere else – like in a long-term care facility – the house may qualify fully for the principal residence exemption. It seems to be common practice for seniors to add the kids to ownership of a house. On that basis, if I were your father, or your mother for that matter, I would be reluctant to pass this asset along to the next generation, ST. This house may be needed to fund not only your mother’s care but also your father’s care in the future. Or he may need to pay costs well in excess of your mother’s costs as the demand for such care increases in the coming years as the Canadian population ages. Your father may someday require long-term care like your mother. In this case, I suspect your father may still live in the family home. And a power of attorney does not grant someone the power to distribute estate assets in advance of death. Beneficiaries of a will have no rights until someone has died. I’m amazed at how often people fast forward to estate distribution while someone is still alive. The role of an attorney is to responsibly manage the grantor’s assets for their benefit – not for the benefit of their beneficiaries. What you can do and what you should do are sometimes different in life and this situation is no different, ST. The only general limitations are that an attorney cannot draft a new will for the grantor and cannot change a life insurance policy beneficiary.Īsk a Planner: Leave your question for Jason Heath » Unless your mother’s power of attorney includes limitations, which they rarely do, your father can make whatever financial and property decisions your mother otherwise could if she was of sound mind. The power of attorney also governs her personally-held assets like her RRIF, TFSA, bank accounts, etc. He has two of two “votes,” so to speak, with the asset. If your father is a joint tenant on the house and has power of attorney or property for your mother, he is in a position where he can do whatever he sees fit with the house. How is this done and what is the procedure? Can this be done?Ī: I’m sorry to hear about your mother’s condition, ST. He wants to put his four daughters on the title of the house. My dad has trusteeship and guardianship for her. My mother has been diagnosed with dementia and is now in long term care. Q: My parents have both of their names on their house as joint tenants.
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