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Sabina wants $30K to be used for her grandkids' education. Should she transfer it to her son's RRSP?
Has your spouse considered setting up a Registered Education Savings Plan (RESP) for her grandchildren? An RESP is a type of trust set up specifically for a child’s education. The contributions are not tax deductible, however, the earnings in the RESP are not taxed until the RESP is paid out to the child and are then taxed in the hands of the child—usually at a lower tax rate. You will need a Social Insurance Number for each child to set up an RESP. As well, RESPs can be set up as family plans and have a maximum life of 35 years. An RESP would ensure the money is used for the grandchildren’s education and it can be transferred to the RESP with no tax implication to your spouse.
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Theresa Morley, CAP, CA is a partner with Morley Chartered Accountants in Barrie, Ont. Read her blog.
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My mother is widow and she just sold her principal residence. She will move into a home I own with a life lease. In turn she is going to gift me $125,000.00. Is there tax compliations with this? As well if needed I will give her a rent receipt for $12,000.00 per year. I will claim the $12,000.00 on my income tax as rental income if needed.
I live in BC My husband is 67 and I soon will be 65. I have one daughter and 2 grandsons 11 and 13. We own our house and we also have a cabin. (cabin worth about $150000) I would like the cabin to remain in the family forever if that is possible 🙂 Or at least until I’m cold 🙂 I am not sure on whether to put the cabin in my daughters name or all three names or just wait until we are both gone and they can inherit everything and pay probate and the taxes. What would be the best way to go?
Also the house (our resident) I was thinking we should also put her name on it just in case something should happen to us it would be hers right away. She owns her own place (has a small mortgage. I don’t know what the best way to go on this and I would appreciate you opinions on these matter. – TIA
If we sold 40cres of land and wanted he proceeds to go to our 4 children would they have to pay taxes on the money?
Due to the large volume of comments we receive, we regret that we are unable to respond directly to each one. We invite you to email your question to [email protected], where it will be considered for a future response by one of our expert columnists. For personal advice, we suggest consulting with your financial institution or a qualified advisor.
my mother in law is planning to leave her property/home and all her funds to be divided into 3 siblings. the home is in her name also.
Will there be capital gains taxes payable once the property is sold and her bank account transferred to the siblings, and if so is there a way as to not have to pay capital fees or probate fees.
Thank you