All About Estates
By Rebecca Tong
December 4th, 2025
Thinking about gifting the family home to the next generation, while you’re still here? Be sure to consider the implications & alternatives…
Ever thought about gifting a property to your children? I recently had this very discussion with my own aging parents. This resulted in some important discussions about our family home, their goals and consideration for the tax outcomes of any decisions made…
- Tax Consequences:
Although there is no gift tax in Canada, capital gains may still apply for the person gifting the house. The Canada Revenue Agency (CRA) considers this a disposition when you gift your property to your child. - Ongoing Costs:
Are your children going to be able to afford ongoing maintenance costs? Legal fees? Land Transfer Tax? Property taxes? Are they responsible enough to upkeep the property? Future income/capital gains when they decide to sell the home? - Loss of Ownership:
Once the property has been gifted to your children, you no longer have legal ownership which may not align with your goals. - Potential Conflict:
If you are gifting your family home to one child but you have multiple children, this might result in conflict. Your other children may see this as unequal treatment which can lead to resentment and other challenges within the family.
