Real estate purchase
Posted date : May 11, 2022.
We have purchased a property in Fort Pierce; we want to put our son who is 50 years old on the deed immediately. Our thinking is that upon our demise, he will already be an owner therefore eliminating the inheritance processes and associated costs. What are the advantages and disadvantages to such an approach?
Pierre Larocque
Hawkesbury, ON
Ed.: Advantages are that the property will pass to your son without the necessity of probate in Florida, and no capital gains tax will arise at that time. The disadvantages are that you will not have complete control of the property in that anything you wish to do will need the signature of your son. If the son is put on the initial deed, gift tax is probably not an issue, whereas adding the son after purchase may incur gift tax. In the U.S., one can gift up to $16,000.00 without tax – in Canada, there is no limit.
