How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Law.Hut Your Own Question
Law.Hut, Lawyer
Category: Canada Law
Satisfied Customers: 7846
Experience:  with over 15 years experience.
Type Your Canada Law Question Here...
Law.Hut is online now
A new question is answered every 9 seconds

What are the succession rules in Canada. If I leave my cottage

This answer was rated:

What are the succession rules in Canada. If I leave my cottage to my son (it's my principal residence) will he have to pay taxes on it's value?
Hello: no, he will not. Any tax would be paid on the capital gain that would be triggered at the time of your death and would be paid by your estate. But a primary residence is exempt from capital gains tax. So there will be no tax triggered in that property at the time of your death or upon transfer to your son.

If you leave this to him in your Will, then there will be probate fees paid on the value of that property. The fees are a percentage of the value of the estate. You can avoid that by putting him on title prior to your death jointly with you. That way he would automatically be one entitled to full title on your death without that asset being included in the inventory of assets to be probated.
Law.Hut and 2 other Canada Law Specialists are ready to help you
Customer: replied 3 years ago.

This means that if I put him on title now he will not have to pay succession taxes or any transfer taxes when I'm gone?

There are no succession taxes for him?

And no taxes on him taking over the cottage?

There is no such thing as succession taxes. In your case there are no capital gains taxes. There can be probate fees paid to the court but you can avoid those with respect to the house by putting him on title now.

Related Canada Law Questions