Gifting Assets to Family

Articles

“Gifting”
“No good deed goes unpunished”

Many people consider gifting some of their hard-earned assets to children during their lives. While this is certainly a generous gesture it can result in negative consequences.

While there is no “gift tax” in Canada, one must be mindful of the following issues:

  • Gifts of capital assets (Real estate, investments, etc) may result in a capital gains tax for yourself;
  • If assets are given or loaned to a spouse or a related minor child, attribution rules may apply;
  • If not gifted outright, double tax may apply on accrued capital gains;
  • You will likely lose the use of the asset; and
  • You may need the asset for your own living/health care expenses later.

Before giving away your assets we recommend that you consult with your accountant and lawyer.