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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 100373
Experience:  Lawyer
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Need a deed question answered

Customer Question

need a deed question answered
Submitted: 2 years ago.
Category: Canada Law
Expert:  Debra replied 2 years ago.
Please provide me with the basic facts and then please let me know your exact question.
Customer: replied 2 years ago.
My Mother and sister are concerned that if my mother(age90) passes away that the probate on her estate(all comprising a home will be very high) they have asked that my name go on the deed...I am fine with do we proceed?...We've been told it is simple...Can I just become a 50% owner that simply?
Expert:  Debra replied 2 years ago.
Is your mother mentally competent?Do you live with their mother?Is the home your mother's principal residence?
Customer: replied 2 years ago.
(###) ###-####
Customer: replied 2 years ago.
when are you calling?
Expert:  Debra replied 2 years ago.
The rules of my law society do not allow me to call you as you are not my client. Would you like for me to continue by posting on this site or would you like for me to opt out and see if another expert is willing to call you?
Customer: replied 2 years ago.
have to go out soon!
Expert:  Debra replied 2 years ago.
So do you want me to go on and answer or opt out?
Customer: replied 2 years ago.
Go mother does not live in house...nor do I
Expert:  Debra replied 2 years ago.
It is not difficult for your mother to transfer title from herself to herself and yourself as joint tenants. That would avoid probate fees. However, because the house is not your mother's principle residence she will have to pay capital gains tax when she adds your name to the title. As well, she will have to pay land transfer tax. Later on when she dies, if you want to sell the tax, then both you and the estate will have to pay capital gains tax because this is not your principle residence either. For this reason it would make more sense to first consult with your mother's accountant before deciding which route to go as it could be that adding your name to the title could prove to be more expensive when taking into account the tax situation and legal fees, etc.
Customer: replied 2 years ago.
she does not own 2 homes just the one...she is living with my sister for care/health reasons...she will still be subject to capital gains?
Expert:  Debra replied 2 years ago.
It is possible for her to claim the house as her principal residence. That way she would avoid capital gains tax now and the estate would as well when she dies. I am assuming the house is not being rented it. But that would not help your situation in terms of your being required to pay capital gains tax unless the house becomes your principal residence.
Customer: replied 2 years ago.
she is elderley and we are renovating it to rent...I have a home already in which I if I was on deed...I would have to pay immediate capital gains( considerable house bought in 1965)
Customer: replied 2 years ago.
I have to go but not really done...tomorrow?...
Customer: replied 2 years ago.
or 7 est tonight?
Expert:  Debra replied 2 years ago.
I will be able to help tomorrow or tonight but this isn't really a legal question any more. You know the law now and it's about the accountant looking at the actual numbers and the different scenarios.
Customer: replied 2 years ago.
if I sign onto deed do I pay capital gains now based on a 1965 price?...or a future sale with the increase (if any) from current market prices?..If my mother remains "away" from home in the care of my sister...will sale or her death spur capital gains?
Expert:  Debra replied 2 years ago.
There is a deemed disposition at fair market value at the time of your mother's death. But if this is her only residence then it is her principal residence so long as it is not income producing and there would not be any tax to pay. There is also a deemed disposition at fair market value if she transfers half the ownership to you. You are also deemed to have acquired it at fair market value so you only have a gain that would be the increase in value from the time you went on title.

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