Coronavirus

[Scuba Steve]

right now there is no tax on inheritance in Canada

 

[GreyGhost]

Multi millionaire / $500 fine. That'll hurt (Not)

Sweet. They stayed the tickets and charged them with failing to isolate and failing to act consistent with declarations. That means they have to appear in court and could get six months in jail. Hahaha. Bubba won't be nearly as fun in bed as his trophy wife.

Canadian couple who got vaccine meant for Indigenous people may face jail time

Rodney and Ekaterina Baker were served with court notice, said Yukon community services minister Rodney and Ekaterina Baker. Photograph: Ekaterina Baker/Facebook A millionaire Canadian couple who secretly travelled to a remote community to receive a coronavirus vaccine meant for vulnerable and...

money.yahoo.com

 

[mimico_polak]

Sweet. They stayed the tickets and charged them with failing to isolate and failing to act consistent with declarations. That means they have to appear in court and could get six months in jail. Hahaha. Bubba won't be nearly as fun in bed as his trophy wife.

Canadian couple who got vaccine meant for Indigenous people may face jail time

Rodney and Ekaterina Baker were served with court notice, said Yukon community services minister Rodney and Ekaterina Baker. Photograph: Ekaterina Baker/Facebook A millionaire Canadian couple who secretly travelled to a remote community to receive a coronavirus vaccine meant for vulnerable and...

money.yahoo.com

I’m happy about this but feel there is zero chance of them going to jail. I hope I’m wrong.

 

[GreyGhost]

I’m happy about this but feel there is zero chance of them going to jail. I hope I’m wrong.

I agree, the most likely outcome is loss of trophy wife. Her acting career is officially sunk. She is going to be very upset until the court date with the threat of jail looming over her. She wasn't born in Canada, not sure of her immigration status. Really, she has a lot more to lose than him. He can just retire somewhere warm with his hundred of millions (or at least half of that).

 

[mimico_polak]

I agree, the most likely outcome is loss of trophy wife. Her acting career is officially sunk. She is going to be very upset until the court date with the threat of jail looming over her. She wasn't born in Canada, not sure of her immigration status. Really, she has a lot more to lose than him. He can just retire somewhere warm with his hundred of millions (or at least half of that).

Oh he'll be fine. Dust will settle, he'll call a few buddies and have a job within a few weeks again. Her...I hope they have a strong and loving relationship, because things like this may have a tendency to tear them apart.

 

[Evoex]

It depends on the details of whatever garbage money grab JT comes up with.

As a first cut, a family trust can provide a mechanism for transfer that should work for some money. You can stuff the cottage in there as well (or even better as a sub-corp if you are renting it out) so your death wouldn't trigger the tax.

If you are really playing the long game and trust your kids (once they are legal adults), you could spin up a corporation that they own but you work for. You hire yourself out as a consultant at $250/hr, the corp pays you $40 per hour and holds (or even better spits out into a trust) the $210 (minus some expenses). JT can't tax that when you die as it was the kids corporation and therefore their money. That becomes their legacy fund and you can spend everything you have control over without worrying about whether you are leaving them something.

Friend in the UK "bought" his parents London flat and they rented it back from him. I think there is a timeframe where that works (eg. they didn't die for a decade after you bought the house so no tax but if they gift it on their death bed, full tax).

Now, for the most part, I think inheritance upon death is mostly a bad idea anyway. We have told all of the older generation that they have worked hard and we would like them to spend as much as they want. For some of the elders, they are planning on dying broke (from corporations setup in the caymans money), others have helped us out along the way (great option imo as money is much more valuable to me now than in 10 or 20 years assuming they have no use for it in the meantime), others plan on leaving us something upon their passing and are living frugally as they believe that is their duty (I don't like this approach, but it's their money so they can do what they want). If you can do constant smaller gifts to the kids (assuming you are in a position to do that) you may avoid the taxes. For instance buy a vehicle and transfer it to the kids.

Yepp!

My dad plans to sell his house soon and rent so my sibling and I can inherit cash money. Personally I don't care if he goes to Vegas and blows it all on hookers and blow, but its his dough.

 

[GreyGhost]

Yepp!

My dad plans to sell his house soon and rent so my sibling and I can inherit cash money. Personally I don't care if he goes to Vegas and blows it all on hookers and blow, but its his dough.

Hopefully not too much blow. It would be nice if he stuck around for a while longer. Hookers on the other hand, go nuts. Anything you catch from them will take a long time to kill you.

 

[mimico_polak]

My parents have started speaking about passing things on (they're both reaching 70). My sis and I both told them to sell everything and go travel while they still can (and once allowed to do so) but they're of the mentality that they have to give us everything in terms of property. Not cash. They're of the belief that cash is great, but property is better. And after this week I tend to agree.

 

[Evoex]

My parents have started speaking about passing things on (they're both reaching 70). My sis and I both told them to sell everything and go travel while they still can (and once allowed to do so) but they're of the mentality that they have to give us everything in terms of property. Not cash. They're of the belief that cash is great, but property is better. And after this week I tend to agree.

Except you'll get destroyed on capital gains unless you're going to sit on it.

 

[mimico_polak]

Except you'll get destroyed on capital gains unless you're going to sit on it.

Exactly. That’s what we are trying to figure out.

Need to talk to a lawyer to see what’s best. IIRC there needs to be a valuation of the properties at time of handover so they capital gains is from that point in time, instead of us shouldering all the capital gains.

 

[Evoex]

Exactly. That’s what we are trying to figure out.

Need to talk to a lawyer to see what’s best. IIRC there needs to be a valuation of the properties at time of handover so they capital gains is from that point in time, instead of us shouldering all the capital gains.

That's my understanding as well.

I'll take the cash and reinvest or pay off my own future mortgage with it. Who knows what the future real estate market will look like.

 

[mimico_polak]

That's my understanding as well.

I'll take the cash and reinvest or pay off my own future mortgage with it. Who knows what the future real estate market will look like.

I would prefer the cash, but don’t want them to feel I’m telling them what to do with their money.
We need to sit down eventually just to know what is what because they just say ‘it’s all taken care of’ whatever that means.

 

[GreyGhost]

Except you'll get destroyed on capital gains unless you're going to sit on it.

Even if you sit on it you have to pay. I guess maybe not if it was their principal residence? The plan is for the in-laws cottage to go to my wifes brother (best solution by far for us for many reasons). It is up ~500K from purchase. When they die, someone has to cover that bill in that year (assuming they didn't transfer and pay the bill earlier). Theoretically we may get a house in the suburbs we don't want or cash (or nothing is fine too). Assuming they want an even split (which they are very focused on), the division gets more complicated (estate=house+cottage-cg cottage+cash). Assuming the house and cottage are equal money (probably close), if the cash doesnt cover the cottage capital gain (reasonable assumption), her brother has to get a loan or sell the cottage. It's all fun and games to get excited about getting a cottage, but when you need to pull a five or six figure loan and add ~15-20K in yearly expenses, it becomes a lot different scenario. He is unable to do any maintenance himself, every issue will need to be fixed with money. Of course he is a financial planner and super excited about it. Facepalm.

 

[Evoex]

I would prefer the cash, but don’t want them to feel I’m telling them what to do with their money.
We need to sit down eventually just to know what is what because they just say ‘it’s all taken care of’ whatever that means.

amen.

my dads said twice now he wants to give me the passwords to all his accounts/info etc incase the unexpected happens...i reminded him once but i don't want to push it lol.

 

[GreyGhost]

amen.

my dads said twice now he wants to give me the passwords to all his accounts/info etc incase the unexpected happens...i reminded him once but i don't want to push it lol.

Remind him again. At the very least have a list of institutions and account numbers. Passwords can be solved if you know where to look. Finding accounts on the other hand is a nightmare.

 

[Evoex]

Even if you sit on it you have to pay. I guess maybe not if it was their principal residence? The plan is for the in-laws cottage to go to my wifes brother (best solution by far for us for many reasons). It is up ~500K from purchase. When they die, someone has to cover that bill in that year (assuming they didn't transfer and pay the bill earlier). Theoretically we may get a house in the suburbs we don't want or cash (or nothing is fine too). Assuming they want an even split (which they are very focused on), the division gets more complicated (estate=house+cottage-cg cottage+cash). Assuming the house and cottage are equal money (probably close), if the cash doesnt cover the cottage capital gain (reasonable assumption), her brother has to get a loan or sell the cottage. It's all fun and games to get excited about getting a cottage, but when you need to pull a five or six figure loan and add ~15-20K in yearly expenses, it becomes a lot different scenario. He is unable to do any maintenance himself, every issue will need to be fixed with money. Of course he is a financial planner and super excited about it. Facepalm.

Oooof.

Yeah our cottage is currently co-owned by my dad and my aunt. My uncle (aunts husband) used to work for CRA so he's hunting for all the possible loop holes to transfer this in the best way possible.

It should be passed down to my sister, myself and my cousin so lord knows how we'll deal with that. But we obviously want to keep it and as i said in another thread i want to rent it out help offset the bills.

Good news is upkeep is only at around 5 grand a year.

 

[mimico_polak]

Remind him again. At the very least have a list of institutions and account numbers. Passwords can be solved if you know where to look. Finding accounts on the other hand is a nightmare.

This is my concern. Trying to figure out the mess after will be a nightmare. My mom doesn’t track finances at all so if anything should happen to him it’ll take months to sort out the mess.

 

[Evoex]

This is my concern. Trying to figure out the mess after will be a nightmare. My mom doesn’t track finances at all so if anything should happen to him it’ll take months to sort out the mess.

my dad keeps meticulous notes in a day planner.

downside is, he has a million of them.

 

[mimico_polak]

my dad keeps meticulous notes in a day planner.

downside is, he has a million of them.

Mine has a pile of papers....same as me. Frak I’m horrible at organizing.

my wife has a list of all accounts so should something happen she can find everything easily.

 

[GreyGhost]

Oooof.

Yeah our cottage is currently co-owned by my dad and my aunt. My uncle (aunts husband) used to work for CRA so he's hunting for all the possible loop holes to transfer this in the best way possible.

It should be passed down to my sister, myself and my cousin so lord knows how we'll deal with that. But we obviously want to keep it and as i said in another thread i want to rent it out help offset the bills.

Good news is upkeep is only at around 5 grand a year.

I would look strongly at sticking the cottage in a corporation or trust. That cleans up all the paperwork and feelings. It outlines at the beginning what everyones responsibilities are and what an exit looks like if someone wants out (probably shotgun but up for discussion), who can shares be passed or sold to, etc.. The corporation also allows easy redistribution of ownership percentages if desired.