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The demographic phenomenon referred to as “The Ageing or Greying of Canada” brings challenges and opportunities for the transfer of wealth from one generation to another. In many cases the Donor needs to allocate a significant amount of time to retirement and estate planning issues in order to distribute his assets in the most tax-efficient manner. Legal and Tax advice will be critical especially if a person’s wealth is comprised of business assets and/or real estate outside Canada.


The receipt of an inheritance could be a singular event that occurs after the estate of a parent is finalized. Or, the transfer of wealth from a Parent(s) to one or more children could be processed as multiple transactions over time before the final value of their Estate is distributed. Sometimes this approach is taken if a senior wants to divest himself of some assets to minimize the amount of tax payable to his estate.


In Canada the distribution of a gift, cash, land or real estate either from an Estate or during the Donor’s lifetime is not a taxable event to the Recipient. The taxable event occurs to the person(s) making the gift during her lifetime or in her terminal tax return. Of course the quantum of the tax depends on the type of property being donated. In Canada, fortunately the transfer of ownership of a principal residence or the sale of that residence and the transfer of its cash value is not taxable to either the property owner or the recipient.


For our senior clients who want to gift assets during their lifetime, our role as your Certified Financial Planner is to ensure that the best financial vehicles are in place so that the required level of retirement income is continued and that a capital preservation strategy is in place. Ownership of financial assets, beneficiary and survivorship designations, the use of trust accounts, segregated funds and life insurance all need to be examined carefully. We can do this.


For our younger clients who have received or expect to receive an inheritance, we understand that this may be an emotional gift and we can help you make the choices that are most suitable for your situation. This is one of the main benefits of our program, “Your Retirement Map”™. It has proven to help many clients see how their financial future could be impacted depending on how their inheritance gift is allocated.


Regardless of your age, call us to learn more about how “Your Retirement Map”™ can make a difference in your financial plans. Contact a Hamilton Financial Planner today!

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