Family Property Transfers – How To Avoid Tax Implications?
Family Property Transfers are a fundamental part of estate planning, it revolves around transferring property ownership to a family member. It is important to ensure proper estate planning, because it could result in additional implications during the process of transferring ownership.
- Adding your spouse as a joint tenant property owner
- The parent gifts the property to a child
- Set plans as to how the property will be transferred after death
No matter the reason, it is important to ensure that proper documents and agreements are considered before transferring ownership.
Avoid Additional Taxes
Before proceeding, additional taxes and attribution rules may come into play. We recommend consulting with an Estate Planning lawyer to help with family property transfers.
Winright Lawyers can assist with creating a plan that limits the amount of taxes and other expenses incurred when planning the distribution of assets from the legal estate. We look forward to helping you with your legal matter!
Property Transfer Tax
The Property Transfer Tax (PPT) applies to all real estate transactions unless you qualify for an exemption. For family transfers, the exemption applies to the following:
- Your spouse, their child, parent, grandparent, or great-grandparent
- Your child, grandchild, great-grandchild (and their spouses)
- Your parent, grandparent, or great-grandparent
Note: Siblings, uncles, aunts, nieces, and nephews are not considered for an exemption.
Use this Free Online Calculator to find out how PPT is calculated depending on your situation.
In addition to that, the property must also meet the following requirements:
- Must live in the property as the primary residence for at least 6 months
- The property must accommodate three families or less
- Any improvements with the land, should be considered as “residential” by BC Assessment
- Land size is 0.5 hectares or less